TESTIMONY OF KEVIN CARROLL
MANAGING DIRECTOR AND ASSOCIATE GENERAL COUNSEL,
SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION
BEFORE THE U.S. DEPARTMENT OF LABOR,
EMPLOYEE BENEFITS SECURITY ADMINISTRATION
HEARING ON: IMPROVING INVESTMENT ADVICE FOR WORKERS AND RETIREES

SEPTEMBER 3, 2020

Good afternoon. I am Kevin Carroll, Managing Director and Associate General Counsel at the Securities Industry and Financial Markets Association. SIFMA represents the interests of hundreds of broker-dealers, investment banks and asset managers.
We appreciate the opportunity to further comment on the Department’s proposed exemption.

First, let me express SIFMA’s strong support for the Department:

Replacing the vacated 2016 investment advice rule and reinstating the original five-part test;

Reinstating Interpretive Bulleting 96-1; and

Reinstating the class exemptions that were part of the same 2016 initiative, as they existed prior to 2016.

Directionally, SIFMA also supports the Department’s proposed exemption to the extent that:

It permits financial professionals to provide investment advice in a flexible manner; and

It is aligned with the SEC’s Regulation Best Interest (“Reg BI”).

Accordingly, SIFMA urges the Department to proceed without delay to finalize its new protections for retirement savers, while at the same time ensuring that those same investors receive the benefit of a consistent best interest standard across both the DOL and SEC regulatory regimes.

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