Feds on the prowl for control of your retirement (Representatives, Congress, legal)
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The Department of Labor (DOL) has argued people are just not knowledgeable enough to plan for their own retirement. It has proposed a rule to categorize more people as fiduciaries in order to regulate them.
...
“Under the new rule, financial professionals who provide even one-time guidance or appraisal of investments could find themselves classified as ‘fiduciaries,'” the report detailed. “For centuries, the standard definition of fiduciary has been someone in a clear position of trust. In finance, this means someone whom the client has specifically entrusted to manage his or her assets and make investment decisions.”
Under current federal law the DOL can regulate anyone classified as fiduciary. If essentially everyone is classified as a fiduciary the department would then be able to regulate everyone.
So they truthfully could not regulate everyone - if you handle your own retirement funds. But still, what's the point of this if control is not the main agenda?
We are in lame duck season. It is just getting started. Keep close contacts with your federal representatives.
It is just getting started. Keep close contacts with your federal representatives.
Thankfully, there's lots of hate for this from both sides of the aisle and financial industry.
Quote:
Members of Congress from both parties have expressed serious concerns about the rule. In September, 96 House Democrats, including avowed progressives
like Rep. Gwen Moore (D-Wis.), wrote to DOL expressing concern about its effects on consumer choice and access to advice, and the potential for low-income
savers to lose access to vital financial services.
what's the point of this if control is not the main agenda?
to legally require certain people in the financial industry to act in the best interests of their client.
currently, many types of roles within financial services are not legally bound to do so.
this manifests itself, for example, in the fees that mutual funds and 401k's are allowed to charge. Under a fiduciary standard, any fees and costs paid by the client be reasonable for the services provided.
Imposing a fiduciary standard in that case would make it far more difficult for fund managers to price gouge on the fees in your pension or 401k. Or it could increase the number of lawsuits against financial advisors for kickbacks, price gouging, conflicts of interest, etc. -- which depending on your perspective could be a good thing or a bad thing.
Fittingly, even before Ramsey came out against the rule, one of his critics called for using the rule against Ramsey, supposedly for providing advice said critic deemed harmful to savers. In an October article in LifeHealthPro, an online trade journal for insurance agents and financial advisers, Michael Markey, an insurance agent and owner of Legacy Financial Network, called for Ramsey to “be regulated and to be held accountable” by the government for the opinions he gives to listeners. Markey hailed the Labor Department rule as ushering a new era in which “entertainers like Dave Ramsey can no longer evade the pursuit of regulatory oversight.”
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“Under the proposed regulation, investment advice from a radio host to a caller regarding the caller’s own investment issues would appear to be fiduciary advice if the advice addresses specific investments,” Mason said in an email. It doesn’t matter that Ramsey and other hosts aren’t compensated by listeners, he adds, as the DOL rule explicitly covers those who give investment advice and receive compensation “from any source.” Mason agrees with Markey that the compensation Ramsey receives from radio stations that carry his show and from book sales are enough to define Ramsey as a “fiduciary” under the rule.
This is stretching into First Amendment territory.
“Under the proposed regulation, investment advice from a radio host to a caller regarding the caller’s own investment issues would appear to be fiduciary advice if the advice addresses specific investments"
We'll have to start speaking in codes when Big Brother is around...
The dog barks by the pale moonlight when the wind blows from the east.
Translation:
I have 30 shares in Prudential and was looking to sell.
This is targeted at a specific sort of issue-where your financial advisers operate in their best interests instead of yours. A lot more of this has happened recently, and since wealthy people are the targets, dont be surprised to see this make a decent attempt at being passed into law.
If this fails, and it probably will, expect a more narrowly written law to be brought up next. This law is for the .01%, it has very little to do with most of us beyond possible unintended consequences..
The Department of Labor (DOL) has argued people are just not knowledgeable enough to plan for their own retirement. It has proposed a rule to categorize more people as fiduciaries in order to regulate them.
...
“Under the new rule, financial professionals who provide even one-time guidance or appraisal of investments could find themselves classified as ‘fiduciaries,'” the report detailed. “For centuries, the standard definition of fiduciary has been someone in a clear position of trust. In finance, this means someone whom the client has specifically entrusted to manage his or her assets and make investment decisions.”
Under current federal law the DOL can regulate anyone classified as fiduciary. If essentially everyone is classified as a fiduciary the department would then be able to regulate everyone.
So they truthfully could not regulate everyone - if you handle your own retirement funds. But still, what's the point of this if control is not the main agenda?
We are in lame duck season. It is just getting started. Keep close contacts with your federal representatives.
Cry me a river! I see nothing wrong with the federal government protecting Americans from falling prey to crooks masquerading as "financial advisors".
The Department of Labor (DOL) has argued people are just not knowledgeable enough to plan for their own retirement. It has proposed a rule to categorize more people as fiduciaries in order to regulate them.
...
“Under the new rule, financial professionals who provide even one-time guidance or appraisal of investments could find themselves classified as ‘fiduciaries,'” the report detailed. “For centuries, the standard definition of fiduciary has been someone in a clear position of trust. In finance, this means someone whom the client has specifically entrusted to manage his or her assets and make investment decisions.”
Under current federal law the DOL can regulate anyone classified as fiduciary. If essentially everyone is classified as a fiduciary the department would then be able to regulate everyone.
So they truthfully could not regulate everyone - if you handle your own retirement funds. But still, what's the point of this if control is not the main agenda?
We are in lame duck season. It is just getting started. Keep close contacts with your federal representatives.
This was prefaced with 'we have to pass it to find out what is in it'. A 'call to arms' that the media kept silent about and no one demanded pelosi retire. Well, this is what you get after you let the camel's nose gets in the tent.
A motivated voter cannot get a free ID in the 4 year period between elections? the dems don't think people are capable. See the pattern by dems to treat people like uninformed little chldren?
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