Congress members say fiduciary duty could curb access to advice

U.S. Congress Members have waded into the fiduciary duty debate.

Thirty-two have signed a letter to Seth Harris, the acting secretary of the U.S. Department of Labor, asking him to reconsider imposing a fiduciary duty on U.S. financial advisors.

Read: Can’t empathize with clients? Get out of this business

“We have concerns that the Department’s re-proposal could severely limit access to low-cost investment advice,” says the letter. It adds many people find retirement planning difficult without access to professional advice.

“A new, more restrictive definition of fiduciary would add yet another barrier to accessing qualified retirement planning services.”

Read: NASAA urges fiduciary standard for broker-dealers

The Congress Members cite the “minority communities we represent” as the source for such concern.

“We believe the Department should adopt policies that expand access to advice, particularly in light of the racial and gender disparities that currently exist in retirement savings,” says the letter.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.