DOL commences hearing on fiduciary proposal
WASHINGTON (8/11/15)--The U.S. Department of Labor (DOL) commenced several days of public hearings Monday regarding its proposal on the retirement investment advice. CUNA submitted a comment letter on the proposal, delved deeper on its Removing Barriers blog, and will be monitoring the hearing to see if further comment is warranted.
The portion of the DOL proposal that is relevant to credit unions would expand what is considered investment advice, which could be triggered if credit unions provide services for 401(k) plans and individual retirement accounts.
CUNA stated that it supports the goal of this rule to protect investors and highlighted the fact that credit unions offering investment services to their members helps fulfill their mission to help American families of all means receive information about saving for retirement and planning for their future.
The letter also noted that it is important to have rules that encourage and promote retirement savings, rather than potentially chill the ability of credit unions, or other financial institutions, to provide these products and services.
CUNA said the DOL should analyze how it can more narrowly tailor the definition of “investment advice” to assure that credit union employees, who are only tangentially involved in providing investment services, are not included in the rule.
The progression of the DOL’s proposal is also being monitored by CUNA Mutual Group, which is assessing potential business and compliance impacts on behalf of its credit union customers.
The hearing will take place from 9 a.m. to 5:15 p.m. (ET), today and Wednesday, and from 9 a.m. to 2:15 p.m. Thursday. It will be broadcast live on the DOL’s website.