Removing Barriers Blog

CUNA Submits Comment on DoL’s Fiduciary Rule RFI
Posted July 21,2017 by CUNA Advocacy

CUNA’s Senior Director of Advocacy and Counsel, Leah Dempsey, submitted comments to the Department of Labor in response to their Request for Information (RFI) on the Fiduciary Rule and Prohibited Transaction Exemptions.   

While CUNA supports the underlying intent of the fiduciary rule to protect investors, CUNA has sought clarity about compliance complexities associated with the rule. 

The letter points out that CUNA appreciates that the DOL previously included some of our requested clarifications from the proposed rule stage in the final rule, including explanations about what is financial education versus advice. Adding that these clarifications show that credit unions can continue to have broad conversations with their members about financial education, and also provide general information about opportunities to invest and save.  

But notes that, "more narrowly tailored conversations to a member’s specific situation, in which the credit union or credit union employee receives certain compensation associated with information about the rollover of a 401k or retirement plan, may not be excluded from coverage of the rule. We continue to believe that further analysis about whether these new requirements could curtail credit unions and credit union service organizations (CUSOs) from serving members with investment products and services would be beneficial to consumers." 

In the letter, CUNA reiterates some its specific concerns with the rule and urges the DoL to provide further clarification that credit unions are not the target of this rule, and provide any necessary carve-outs to ensure that their ability to provide information about consumer-friendly product offerings is not impacted.  CUNA also urges the DOL to delay the applicability dates of all parts of the rule until the research about unintended consequences is completed and any decisions about changes to the rule are finalized. 

CUNA will continue to urge the DoL to examine how the rule’s unintended consequences impact America’s credit unions and the 110 million members they serve.