What Phyllis Borzi has to say about the DOL rule now
The architect of the Department of Labor fiduciary regulation claims it is already paying dividends by lowering costs for investors — and isn’t going away
Dec 1, 2016 @ 4:05 pm | By Mark Schoeff Jr. | Investment News
Labor Assistant Secretary Phyllis Borzi said the agency’s investment advice regulation is already reducing fees in the industry and will continue to do so — no matter what happens to the rule in the Trump administration.
The regulation, which requires financial advisers to act in the best interests of their clients when providing retirement advice, has led to “low-cost, transparent investments for retirement accounts.”
“The industry is moving in that direction,” she said Thursday at a Consumer Federation of America Conference in Washington. “We’re getting lower fees in these investment options even before the rule is [applicable].”
She cited announcements by several wirehouses and independent broker-dealers over the last few weeks that they will no longer offer commission-based products in retirement accounts, though those statements were made before the election of Mr. Trump.