Pennsylvania + Wall

By Kenneth E. Bentsen, Jr.

In the following op-ed, originally published in U.S. News, SIFMA’s President and CEO writes that a new proposal being drafted by the Department of Labor (DOL) could have an unintended negative impact that would make it harder for Americans to meet their retirement goals.

I am writing in response to Jim Lardner's May 6, 2014 op-ed entitled "When Salespeople Call Themselves Advisors" in order to address some of the misconceptions and inaccuracies regarding the industry's position.

When helping Americans save for retirement, investment professionals work hard every day to serve in their client's best interest. In return, their clients trust them to act on their behalf in a way that is suitable for their individual retirement needs. Each day, millions of Americans rely on broker-dealers to help them save for their future. Studies have shown that investors who work with an investment professional save more and are better prepared for retirement..... Read more...

By Timothy W. Cameron

On Thursday, Jacob Lew, Treasury Secretary and head of the FSOC, will testify before the House Financial Services Committee to talk about systemic risk in the international financial system.  It's vital that this discussion address the unique characteristics of asset management firms and how they are different from banks.

In April of 2012, the FSOC published a rule on the process for designating non-bank financial institutions as systemically important - so called SIFI designation. This framework - which was essentially a list of factors most pertinent to the banking industry - was not supported by extensive research, nor did it contain an approach tailored toward the targeted entities' business model. SIFMA's Asset Management Group is very concerned with the notion that asset managers and/or the funds they manage could be designated as SIFIs and, therefore, subject to prudential or bank-like regulation that could stifle their ability to serve individual investors..... Read more...