The SEC should ensure investors have access to different types of services and products and fully understand the choices they are making.
Learn.Save.Retire is a U.S. Chamber initiative designed to advance bipartisan support for steps to make it easier for small businesses to offer retirement plans and enable middle-class savers to better plan for their future. As part of this initiative, the Chamber is advocating for a fiduciary duty rule that doesn’t limit access to affordable retirement advice or retirement products.
The Securities and Exchange Commission proposed two rules and an interpretation regarding the standards of conduct for broker-dealers and investment advisers:
Proposed Regulation Best Interest: The SEC is proposing a new rule to establish a standard of conduct for broker-dealers when making investment recommendations to retail customers. New requirements beyond the existing suitability requirements for broker-dealers under this proposal include mitigating and eliminating conflicts of interest, enhanced duty of care obligations, and additional disclosures to investors.
Proposed Form CRS and Additional Disclosures: The SEC is proposing to require broker-dealers and investment advisers to provide a four-page relationship summary to retail investors to inform them about the relationships and services the firm offers, the standards of conduct, the fees and costs associated with those services, and conflicts of interest. The SEC is also proposing to restrict broker-dealers from using the term “adviser” or “advisor” in certain circumstances.
Proposed interpretation of the Standards of Conduct for Investment Advisers: This proposal explains the SEC’s interpretation of investment advisers’ existing fiduciary obligations and considers potential enhancements to their legal obligations where the current broker-dealer framework provides investor protections that may not have counterparts in the investment adviser context.
On May 16, the U.S. Chamber submitted a comment letter to the SEC expressing concern with recent state fiduciary proposals and asking the SEC to reiterate the purpose and scope of NSMIA (National Securities Markets Improvement Act) preemption. Read Here
On August 7, the U.S. Chamber submitted a comment letter on the SEC proposals. Read Here
On September 5, the U.S. Chamber submitted a supplemental letter with materials on the SEC proposals. Read Here
To explain some of the different types of business models and services available to investors, CCMC developed a video and infographics highlighting profiles of different investors and sharing the stories of how they invest.
SEC Proposals Stakeholder Research
This research, conducted by the U.S. Chamber of Commerce, is based on interviews conducted with companies providing financial advisory services and products, including broker-dealers and firms that are dually-registered as broker-dealers and investment advisors.
U.S. Chamber of Commerce research on the impact of the proposed SEC Regulation Best Interest Rule proposals
DOL Fiduiciary Rule Stakeholder Research
Key stakeholders have surveyed the financial industry, who serve millions of retirment accounts, to determine the real world impacts of the Department of Labor’s Fiduciary Duty Rule.
- On March 15, 2018, U.S. Court of Appeals for the Fifth Circuit ruled in favor of the U.S. Chamber and its fellow plaintiffs striking down the DOL rule. You can read the U.S. Chambers statement here.
- On Wednesday, April 18, 2018, the SEC released its Best-Interest proposal. Read CCMC’s statement here.
In April 2016, the Department of Labor (DOL or Department) finalized its controversial and long-awaited “Fiduciary Rule,” a sweeping expansion of government authority that fundamentally disrupts the way in which Americans save for retirement. Throughout the rulemaking process, the U.S. Chamber warned that the Fiduciary Rule was built upon a mountain of flawed data and analysis, and would harm the very people it was purported to protect by raising costs and limiting investment options.
This U.S. Chamber retirement white paper takes a look at what it takes for a business to start a 401(k) today and why we need to simplify small business retirement plans, highlighting both the opportunities and challenges faced by entrepreneurs as they look to provide high-quality benefits for their employees and enable savings for their future.
This U.S. Chamber retirement white paper outlines the ways state auto-IRAs will hurt the small business workers they are supposed to help and highlights how workers benefit from strengthened and expanded employer-provided plans. It details why state auto-IRAs are the wrong answer; looks at problems presented by state auto-IRAs; and provides alternatives for improving access to employer provided plans.
Auto IRA Radio Spot
This U.S. Chamber report details policy solution proposals Congress can act on to achieve better retirement security for workers. It’s focus is on strengthening the voluntary employment-based retirement benefits system and enhancing retirement security for workers, while proposing solutions to address the evolving demands of our country’s workforce—an important and pressing issue that policymakers will need to tackle in 2017.