The American Society of Pension Professionals and Actuaries has expressed concerns about government efforts to shape the investment advice that might be offered to retirement plan participants.
The U.S. Labor Department released draft regulations in March that would encourage investment advisors and broker-dealers who advise retirement plan participants to adhere to “generally accepted investment theories” when offering advice.
ASPPA, Arlington, Va., recently submitted comments that were developed with the help of two ASPPA affiliates — the Council of Independent 401(k) Recordkeepers and the National Association of Independent Retirement Plan Advisors.
“We are concerned that the new proposal seeks input into what are ‘generally accepted investment theories,’” Craig Hoffman, ASPPA general counsel, says in a statement. “We believe that in doing so, the DOL is going down a path that may unnecessarily interject government regulators into the role of investment advisor by dictating the parameters of what is acceptable.”
The job of deciding what advice is acceptable “is better left to trained and experienced professionals who apply their expertise either when giving investment advice or creating computer models,” Hoffman says.