Washington, D.C. – The Financial Planning Coalition – comprising Certified Financial Planner Board of Standards, Inc. (CFP Board), the Financial Planning Association® (FPA®) and the National Association of Personal Financial Advisors (NAPFA) – issued the following statement on today’s Senate Health, Education, Labor and Pension (HELP) Committee vote on the nomination of Alexander Acosta to serve as Secretary of Labor:
“Americans saving for retirement and retirees want to know: Does Secretary of Labor nominee Alex Acosta want to maintain the status quo of conflicted financial advice, or does he want to support new rules that will require financial advisors put their retirement clients’ interests first?
“With his nomination voted out of committee, the Financial Planning Coalition urges Mr. Acosta to support the Final DOL Fiduciary Rule that will protect retirement savers from conflicts of interest. Mr. Acosta has thus far eschewed direct responses regarding whether he supports the Rule. Instead, he refers to the Administration’s executive order to delay implementation until further review is complete. This position is insufficient for the millions of Americans who have entrusted advisors with their retirement savings after a lifetime of hard work, and the businesses who have recognized this important consumer preference and spent time and resources preparing for compliance.
“The Final Rule was crafted after careful deliberation and review, reflects extensive public comment, and articulates common-sense standards for ensuring financial advice in investors’ best interest. Empirical research and the Coalition’s practical experience confirm that middle income retirement investors will retain ready access to professional financial advice under a fiduciary standard of conduct, and the vast majority of financial professionals who operate under a fiduciary standard reported that the change has been positive for their clients and their own practice.”