July 2, 2017
Dear DOL Representative,
I am writing in response to your request for public comments on proposed rule change commonly referred to as the "Fiduciary Rule". I strongly encourage the DOL to substantially revise or drop this rule. In response to the rule, some major investment firms are planning to alter their business models to reduce cost and the risk of legal liability. They are planning to stop giving investment advice to smaller investors that is currently provided for free. In addition, for more substantial investors they are planning on moving from a transactional fee to a fee based on a percentage of assets. In both cases, the outcome of the "Fiduciary Rule" is negative for the investor.
Rather than implement the "Fiduciary Rule", I would prefer that action be taken to significantly strengthen the disclosure requirements that all investment advisors must make prior to providing advice to consumers. Prior to advice being given, the consumer must be properly informed by the advisor about the capacity in which they are working in language that the consumer can understand.
Thank you for the opportunity to provide input and I hope that the Fiduciary Rule is substantially modified to eliminate the need for investment firms to implement changes that are negative for a large percentage of the investment community.