“They never said it in any board discussion on the matter, nor did they say so to me,” Bentsen said.
In a statement, Sifma said it followed a “standard procedure” in assessing whether to sue.
“Given the judgment of the board, particularly members with significant direct exposure, that the department acted inappropriately in crafting its rule that will cause harm to the retirement market, the board determined that it was necessary to challenge the rule,” the group said.
Voice Vote
Sifma chose to hold a voice vote on the suit, so there was no official tally. Still, it was clear that the majority of members supported the move, the people said.
Spokesmen for JPMorgan, Morgan Stanley and Bank of America declined to comment. Wells Fargo declined to discuss specifics of the lawsuit debate, except to say in a statement that the bank “continues to have a strong relationship with Sifma” and other trade associations.
“We support a best interest standard and believe that professional financial advisers have a crucial role to play in encouraging retirement saving and investing,” Wells Fargo said in the statement. “Our firm has been an active advocate for our clients and financial advisers during the DOL’s rulemaking process, and we have a robust process in place for reviewing and implementing the final rule.”
Business Model
Sifma counts hundreds of securities firms, banks and asset managers among its members. Their diversity of size and business model fueled the internal debate, the people said.
Member firms that advocated for the suit included Raymond James Financial Inc., Ameriprise Financial Inc., Robert W. Baird & Co., Janney Montgomery Scott LLC and Stephens Inc., the people said.