Vermont Business Magazine Vermont State Treasurer Beth Pearcehasjoined a bipartisan coalition of State Treasurers from across the country to urge theU.S. Department of Labortofully implement the Fiduciary Ruleto protect citizen investors frompotential harm.
In aletterto Labor Secretary Alexander Acosta, Treasurer Pearceand colleaguescautioned against revising provisionsof the Fiduciary Rule:“The retirement savings crisis is growing daily,” the letter states. “We are committed to protecting the financial interest of our constituents – in particular, ensuring that retirement planning and investment advice is not conflicted, and is provided in the sole interest of retirement savers. The Fiduciary Rule is not only a common-sense measure, but a necessary one to protect the public interest.”
The Fiduciary Rule was first proposed in 2015 bytheU.S.Department of Labor.The Rule setsforthmeasuresto protect consumers from deceptive and potentially destructive investment products.Advocates for theFiduciaryRule, including Treasurer Pearce,point toa growing number ofAmerican citizensthatareinvestingtheirsavingsinprivately-managed investment products to save for future needs like retirement. Without a clear fiduciary standard for the investment managers and financial advisors providing services to this growing segment of the population, there is a lack of guidance to ensure citizens are protected from financial harm.
“The United States faces a retirement crisis,” the Treasurers’ letter explains.“As we explore and promote programs and policies, at the state level, that encourage early retirement savingsin an effort tohelp individuals achieve basic retirement security, there will be a growing dependence on sound retirement guidance from professional advisors."
The Fiduciary Rule went into partial effect on June 9, 2017.The coalition of Treasurersremainshopeful that the full Rule will be implemented to protect consumers.
“As State Treasurer, I wanteach and everyVermonter to be able to saveso they can live a secure and dignified retirement. The standards upheld by the Fiduciary Rule will give more consumers the confidence to invest their dollars.This is about consumer protection.I urgeLabor Secretary Acosta to take action to fully implement the Fiduciary Rule,” Treasurer Pearce concluded.