Cathy Weatherford, president and CEO of the Insured Retirement Institute (IRI), also expressed doubts about the need for the proposed change.

“IRI continues to be concerned that a forthcoming rule proposal from the DOL could have unintended consequences that would ultimately deprive lower- and middle-income Americans from accessing affordable retirement planning services and advice,” Weatherford said. “This new rulemaking timetable will provide more time and a new opportunity to work with the Administration to ensure that no rule proposal will prevent access to the important advice provided to Americans by their financial advisors. By working together, we can protect the client-advisor relationship and help ensure that all Americans have the opportunity to attain a financially secure and dignified retirement.”

Advocacy groups such as the U.S. Hispanic Chamber of Commerce have come out against the rule change. A recent study by the Chamber and Greenwald & Associates showed that nearly one third of small businesses say they may eliminate their employees’ retirement plans if new DOL fiduciary rule is enacted.

“The findings presented here show that the DOL expansion of fiduciary status will only impede the ability of small firms to offer their employees retirement-plan accounts, thus hindering American workers from saving for a reliable future,” says Javier Palomarez, president and CEO of the Hispanic Chamber of Commerce.

In January, 30 Congressional members of the New Democrat Coalition wrote to Labor Secretary Thomas Perez and expressed their concerns about rule change. Perez has said he will work with Congress and other organizations on their concerns. No reason was given for the delay in the DOL rule notice.

Once the rule is issued, there is a mandatory comment period and potentially public hearings before it goes into effect.

 

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