While supporters of the DOL’s fiduciary rule sang its praises Wednesday as the department unveiled the final version of its controversial plan, some in the brokerage industry had a decidedly frosty response.
“As we have said since day one, there is no compelling evidence this rule is necessary to achieve a uniform fiduciary standard, and DOL’s own analysis fails to make the case,” said Financial Services Institute (FSI) CEO Dale Brown in a statement.
“We will spend the coming days thoroughly analyzing this rule to determine if it protects Main Street investors by preserving their access to affordable, objective financial advice,” Brown said.
FSI spokesman Chris Paulitz said it would take the organization another week or so to analyze and respond to the final rule.
Likewise, the Securities Industry and Financial Markets Association said it would need time to review the rule and determine its impact.
“As with the prior proposal, this final rule is voluminous and every word matters,” said Kenneth Bentsen, SIFMA’s CEO, in a statement.
“We remain concerned that the DOL's rule could force significant changes to current relationships, which may leave clients without the help they need to prepare for retirement,” Bentsen said.
Separately, the Equity Dealers of America called for congressional action to stop the DOL’s effort.
“We believe it’s time for Congress to use the Congressional Review Act to subject DOL’s fiduciary rule to congressional scrutiny,” said Chris Iacovella, executive director of the Equity Dealers of America, in a statement.
The Congressional Review Act is a 1996 law that allows Congress to pass resolutions to overturn new federal regulations.