ABA SFR for House Hearing re DOL Overreach

The American Bankers Association (ABA) appreciates the opportunity to provide a Statement for the Record for this hearing titled: Protecting American Savers and Retirees from DOL’s Regulatory Overreach. 

Summary

The ABA strongly supports the committee’s interest in examining the proposed amendments to the Department of Labor’s (Department) investment advice regulation (Fiduciary Rule) and related prohibited transaction exemptions (collectively, Fiduciary Proposal or Proposal) regarding the expanded circumstances under which a person is considered to be a “fiduciary” under the Employee Retirement Income Security Act of 1974, as amended (ERISA) and the Internal Revenue Code of 1986, as amended (Code).

The ABA shares the Department’s goal of providing plans and individuals with the ability and means to maximize their retirement investment opportunities, options, and returns.  We believe, however, that the Fiduciary Proposal’s wholesale restructuring of the marketing, products, services, compensation, administration, and eligibility of the retirement services industry is a misguided approach fraught with serious risks, costs, and uncertainties for retirement investors and for the banks and other organizations that supply their services.  We recommend therefore that the Department withdraw the Fiduciary Proposal in its entirety.