Compliance

FSR Makes Retirement Plan Recommendations to Treasury

Among other things, FSR said Treasury should replace the DOL's current fiduciary rule with a “best interest standard” adopted by SEC and state insurance regulators.

By Rebecca Moore editors@plansponsor.com | May 03, 2017

In response to the Trump administration’s Executive Order directing the Treasury Department to conduct an assessment of financial regulation, the Financial Services Roundtable (FSR) submitted a letter outlining major recommendations to help grow the economy and create jobs.

“Improving the financial regulatory system, while protecting consumers, will grow the economy and expand opportunity for more Americans,” says FSR CEO Tim Pawlenty.

Among its recommendations, the FSR suggests the Administration should support policies that will promote retirement savings and enable financial services providers to better meet the long-term needs of Americans in their retirement years.           

The letter says the Administration should:

  • Oppose the implementation of the Department of Labor’s (DOL) current fiduciary rule and work to replace that rule with a “best interests standard” adopted by the Securities and Exchange Commission (SEC) and state insurance regulators;
  • Treasury should support overhauling the techniques for assessing the “cost” of tax expenditures to reflect a realistic view of the benefits of retirement incentives that extend well beyond the customary five- or ten-year budget window; and
  • Grant the private-sector authority to establish open multiple employer plans (MEPs) for small businesses.

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