Views on the integrity of global capital markets
15 December 2015

DOL Fiduciary Rule: Political Grandstanding, Fearmongering Overshadow Investor Needs

Posted In: Fiduciary Duty, US SEC
Shaft of light across the marble floor of the Lincoln Memorial.

As the Department of Labor, Congress, and the investment industry spar over a proposal to raise investment advice standards for retirement accounts, it’s easy for some to lose sight of what’s important: the need to protect investors and help them discern broker-dealers from investment advisers.

In this interview John L. Bowman, CFA, managing director for the Americas region at CFA Institute, and Jim Allen, CFA, head of Americas capital markets policy for CFA Institute, discuss where things currently stand in Congress — including attempts to tie the DOL proposal to legislation to keep the government open — and the conspicuous absence of the US Securities and Exchange Commission from the debate.


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Image credit: iStockphoto.com/alicescully

About the Author(s)
Crystal Detamore

Crystal Detamore is a communications director at CFA Institute and a former columnist for Entrepreneur magazine.

1 thought on “DOL Fiduciary Rule: Political Grandstanding, Fearmongering Overshadow Investor Needs”

  1. Celia Anderson says:

    I have Republican (small town SC) roots and I laud the DOL’s efforts. In fact, I would prefer an ERISA fiduciary standard rather than the 40 Act standard (though I am clearly solo in that view) because at some level, all funds are potentially “retirement” funds. While I cannot see any real enforcement mechanism other than “in arrears” lawsuits – at least some consequences may mitigate the embedded agency risks. Then again, perhaps we just add disclaimers (like on cigarettes?) on the risks of using a non-fiduciary …

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