The letter said, “All stakeholders would benefit from such an extension,” which would allow firms to “thoughtfully consider” using the rule and implementing it. The extension would also reduce the consumer confusion and disruption that is likely to ensue if the agency held fast to the December deadline, the trade groups said.
The groups signing the letter included the Insured Retirement Institute (IRI), the Investment Company Institute (ICI), the National Association of Insurance and Financial Advisors (NAIFA), the Securities Industry and Financial Markets Association (SIFMA) and the U.S. Chamber of Commerce.
The groups also asked the agency to pause plans to propose further changes to the rules for investment advice fiduciaries until there is sufficient evidence that further changes are needed. The DOL said in its regulatory agenda over the summer that it planned to create new regulation.
Although “firms may be technically able to comply by December 20,” said the trade groups, “it is important for financial institutions to be confident that their efforts preparing for implementation and compliance will be smooth and secure.”
“This is achieved by having the time to refine and test their compliance tools and mechanisms,” the trade group letter continued. “More time will allow firms to ensure that all the exemption’s participant protections are fully in place, without the types of errors and disruption that will confuse and frustrate retirement savers and their advisors.”
Like Reish, the trade associations said they are also “quite concerned that many small firms may have been less aware of the December 20 expiration of the temporary enforcement policy than larger firms.”
“For the larger firms, this has been an ongoing effort that in many cases began months ago by devoting substantial resources toward compliance. Such resources are not readily available to small firms,” the trade groups wrote.