April 13, 2016

Brad Campbell Quoted in Wall Street Journal and Trade Press Regarding Final DOL Fiduciary Rule

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Authors: Bradford P. Campbell

Washington, D.C. counsel Bradford P. Campbell was quoted in a number of media outlets regarding the final Department of Labor fiduciary rule. The rule, which was released earlier this month, enforces tighter standards on retirement-account advice. His comments were made on behalf of his client, the US Chamber of Commerce, at a press conference the day after the rule was released.

In The Wall Street Journal, Brad commented on the effects various businesses should expect. “It’s going to cost more than it used to for those small business employers to make plans available to their employees,” he said.

Brad told BenefitsPro and Washington Bureau that the rule forces retirement investment advisers to face a change in their business model and increased litigation risks, which will result in higher costs passed on to their clients, impacting employers with as many as 1,000 plan participants. “Access to advisors is key for small businesses. This means more businesses will face more strenuous regulations, and more advisors will face uncertain litigation risk,” he said. “That will increase the cost of advice and make it more difficult for businesses to offer plans.”

In ThinkAdvisor, Brad discussed how the rule affects the Employee Retirement Income Security Act’s definition of fiduciary, particularly in the best interest contract exemption (BICE). He said that the “most significant issue” continues to be with BICE. “There are frivolous litigation risks and liability risks in the BICE that still remain, and that are going to increase costs for small businesses where advisors are willing to use the BICE exemption at all,” he said. “[The final DOL rule] still requires using the BICE to make a series of judgment calls; these are subjective standards, not objective standards, and that difference really matters here.” Brad also discussed the rule’s education provisions, it’s instructions on how to handle annuities, and it’s negative change for small plans and small companies.

Read The Wall Street Journal’s U.S. Chamber of Commerce Raises Possibility of Lawsuit to Block ‘Fiduciary Rule’

Read BenefitsPro’s DOL final fiduciary rule: Much ado about nothing?

Read Washington Bureau’s Retirement plans will cost small businesses more under new fiduciary rule, critics contend

Read ThinkAdvisor’s DOL Fiduciary Rule: The Good, the Bad and the Ugly

Read ThinkAdvisor's DOL Accused of 'Legislation by Rulemaking' on Fiduciary Rule

Read PLANADVISER's Advisers Can't Respond Unilaterally to Final Fiduciary Rule

Read Plansponsor's Fiduciary Rule Offers Positives for Retirement Plan Sponsors

Read Wealth Management's The Fine Lines of the Fiduciary Rule