SIFMA president and CEO Kenneth E. Bentsen, Jr., delivers opening remarks at SIFMA's Private Client Conference at the Grand Hyatt in New York City, focusing on the need for regulatory balance and SIFMA's priorities, including the Department of Labor's fiduciary rule, senior investors, and cybersecurity. Excerpts are as follows with full remarks found at www.sifma.org/news/news.aspx?id=8589959660:
"Over the course of many decades, the US has developed the most efficient, competitive and 'little d' democratic retail investor market place that has resulted in lower costs, more choices, and more means for investors to maximize their goals. At the same time, it has allowed the individual investor to share in the growth the nation's economy by fueling that growth through capital formation."
DOL Fiduciary
“Our concern has always been and remains that the rule could result in raising costs and reducing choice for investors. Further, we remain concerned that the original premise for the rule lacked empirical basis.”
“What I find most concerning is the nature by which the government advocated for the rule. Quite frankly, it is one thing to surgically and substantively address a systematic market failure based on sound evidence, it is altogether a different matter to malign an entire sector of the economy and by extension every professional employed in it with statements from the official sector suggesting that the brokerage industry’s business model ‘rests on bilking’ their clients or basing such policy on supposed economic rationale that asserts, without basis, that every mutual fund in every IRA in America is excessively charged, when the facts say otherwise.”
“Policy with such far reaching implications, no matter how meritorious the intent, should not be developed by innuendo or character assassination, particularly when the proponents lack the empirical data to support their policy position.”
“The industry has long agreed that there should be a higher standard of care when providing personalized investment advice, and actively supported and continues to support the congressionally authorized approach of the SEC taking such action.”
Senior Investors
“According to a recent MetLife study, seniors lose at least $2.9 billion annually to financial exploitation. Furthermore, it has been estimated that about 1 in 5 Americans aged 65 or older have been victimized by financial fraud. Beyond exploitation, with our aging population and increased life expectancy, so to increases the risk of mental impairment.”
“We are working collaboratively with policymakers, academic experts, psychologists, and other key stakeholders to better understand the risks to senior investors, and the role that firms and advisers can and should play.”
“We have advocated for both state and federal legislation, such as the Senior Safe Act, to help strike the right regulatory balance that allows financial professionals to have the tools they need to protect senior clients without violating current laws and regulations. This issue is too important for the industry not to engage given the role of financial advisers.”
Cybersecurity
“SIFMA and our members have been focused on a variety of initiatives aimed at enhancing the financial services sector’s readiness to protect against and detect attacks, and when necessary respond and recover. Over the past 18 months we have developed cyber defense principles for the brokerage and asset management sectors, developed and enhanced our incident recovery protocols and enhanced industry wide information sharing.”
