It seems like every time EBSA director Phyllis Borzi makes an appearance, she also makes news. According to an Investment News article about Borzi’s speech at a Financial Services Roundtable event on retirement policy, lawmakers lined up to challenge the DOL’s redefinition of fiduciary rule, both during and after the program.
Rep. Gwen Moore (D-WI), a member of the House Financial Services Committee, raised concerns that the rule would ban commissions and limit access. Citing a UK study after an advice rule was enacted there, banks raised the asset threshold for clients it would accept. Rep. Blaine Luetkemeyer (R-MO) questioned what problem the rule was trying to solve, echoing a recently released IRI study. The same day, a letter from the Congressional Hispanic Caucus to the DOL warning of intended consequences of the rule was circulating.
Borzi answered that the rule will not ban commissions, that the UK rule was not comparable and, maybe most importantly, that she is listening. While DOL’s regulatory agenda lists an August release date for the rule, many are wondering whether that date will slip.
