Speaking at a Washington legislative update meeting on May 5, EBSA Director Phyllis Borzi said that while there is no set date for the redefinition of fiduciary rule, she will not wait forever. Most insiders predict that the rule will not be released before the congressional elections in November. BNA’s report quotes Borzi as saying that she has slowed the process to accommodate further industry input.
Calling the retirement world way too complicated and lump sum DB payments a travesty and an example of the problem, Borzi said that individuals must act as their own advisor. She claims that adding a level of accountability is something that many people would agree on and that she was surprised by comments from some congressional leaders who said they don’t care what is charged for financial services. Critics of the proposed rule are concerned that it would limit access to financial professionals by lower income investors — the people who need it most.
