U.S. Department of Labor Office of the Solicitor Washington, D.C. 20210 NOV2 0 201! Austin R. Evers American Oversight 1030 15th Street , NW , Suite B255 Washington, DC 20005 Dear Mr. Evers: This correspondence is in further response to your Freedom oflnformation Act (FOIA) request dated July 21, 2017 (tracking number 836892) wherein you requested: 1. All calendar entries for any meetings pertaining to the development , implementation , consideration, evaluation, reconsideration, or re-evaluation of the "Fiduciary Rule" or "Conflict of Interest Rule," 29 C.F.R. § 2510.3-21. For calendar entries created in Outlook or similar programs, the documents should be produced in "memo" fonn to include all invitees , any notes , and all attachments. Please do not limit your search to Outlook calendars--we request the production of any calendar--paper or electronic, whether on government-issued or personal device--used to track or coordinate how these individuals allocate their time on agency businesses. 2. All meeting agendas and list of attendees for any meetings held pertaining to the development, implementation , consideration , evaluation, reconsideration, or reevaluation of the Conflict of Interest Rule. 3. AU lists of attendees for any meetings held pertaining to the development , implementation, consideration, evaluation , reconsideration, or re-e valuation of the Conflict of Interest Rule . 4. Any materials distributed by DOL or provided b y non-DOL attendees at any meetings attended by persons not employed by the executive branch and held pe1taining to the development , implementation , consideration, evaluation, reconsideration , or reevaluation of the Conflict of Interest Rule. 5. All e-mails reflecting requests for meetings with non-DOL parties to discuss the development , implementation , consideration, evaluation , reconsideration , or reevaluation of the Conflict of Interest Rule. 6. Copies of all correspondence pertaining to the development, implementation, consideration, evaluation, reconsideration, or re-evaluation of the Conflict of Interest Rule. This includes any official correspondence to or from DOL , including correspondence to or from other federal agencies, as well as corre spondence with or by any non-governmental person or entit y. As you know, your request initially was assigned to multiple DOL agency components for proce ssing. In accordance with our FOIA regulations publi shed at 29 C.F.R . § 70.20 , when it is determined that records respon sive to a request may be located in multiple components of DOL , the Office of Information Services (OIS) , within the Office of the Solici tor, may coordinate a DOL-wide respon se. We are continuing to use this process. In the Joint Status Report (JSR) filed on November 4, 2019, the parties agreed to conduct searches of the emails of Secretary R. Alexander Acosta, Molly Conway , Wayne Palmer , and Nate Mehrens. Furthermore, the parties agreed to prioritize Secretary Acosta's emails, and to review all of the emails without attachments. The parties also agreed that the Department of Labor would review 200 documents per month, with an initial release date of November 20, 2019. Enclosed, in this first production are the emails of Secretary Acosta. We are releasing 847 pages in the following manner (note that some pages may include redactions under more than one exemption): • • • 156 pages are being released in full, and 579 pages have been redacted in part as non-responsive, and 139 pages have been redacted in part pursuant to 5 U.S.C . § 522 (b)(6) , which permits the withholding of personnel, medical and similar files when disclosure of such information would constitute a clearly unwarranted invasion of personal privacy. Questions regarding this response can be addressed to Sharon Hudson, SOL FOIA Coordinator, by phone at 202-693-5406 or by email at hudson.sharon @dol.gov . If you need any further assistance or would like to discuss any aspect of your request, please do not hesitate to contact the DOL FOIA Public Liaison, Thomas Hicks , at 202-693-5427 or by email at hicks .thomas @dol.gov . Alternatively , you may contact the Office of Government Information Services (OGIS) to inquire about the mediation services they offer. The contact information for OGIS is as follows : Office of Government Information Services, National Archives and Records Administration, 8601 Adelphi Road, College Park , MD 20740-6001. You can also reach that office by email at ogis@nara.gov, by phone at 202-741-5770 , by fax at 202-741-5769 , or by calling toll-free at 1877-684-6448. Although this matter is currently in litigation, you retain the right to file an administrative appeal. You may file an appeal of this decision with the Solicitor of Labor within 90 days from the date of this letter. The appeal must state in writing the grounds for the appeal, and it may include any supporting statements or arguments, but such statements are not required. In order to facilitate processing of the appeal, please include your mailing address and daytime telephone number , as well as a copy of the initial request and copy of this letter. The envelope and appeal letter should be clearly marked "Freedom of Information Act Appeal." Any amendment to the appeal must be made in writing and received prior to a decision. The appeal should be addressed to the Solicitor of Labor, Division of Management and Administrative Legal Services, U.S. Department of Labor, 200 Constitution Avenue, N.W., Room N-2428 , Washington , D.C. 20210. Appeals may also be submitted via email at foiaappea l@dol.gov . FOIA appeals submitted to any other email address will not be accepted. Sincerely , Deputy Solicitor for National Opera Enclosures Message From: Sent: To: CC: Subject: One more just out: GOP Urges Acosta to Block Obama Retirement Rule Washington Free Beacon, Bill McMorris, 5/2 Congressional Republicans are asking newly minted Labor Secretary Alexander Acosta to roll back one of the Obama administration's most controversial regulations, Rep. Phil Roe (R., Tenn.), a member of the House Committee on Education and the Workforce, sent a letter to Acosta on Tuesday asking him to end the department's proposed Fiduciary Rule, which would allow regulators to oversee the actions of retirement advisers. Opponents of the regulation argue it will drive up the costs of maintaining advisers for smaller investors, "One of the primary concerns that our oversight exposed is that financial advisers would be forced to move from commission-based advisory accounts to fee-based advisory accounts, and that advisers would be unlikely to afford to continue providing advice to small, fee-based accounts," the letter, signed by Roe and 123 other U.S, representatives, stated. "We strongly urge you to delay this rule in its entirety." The Labor Department adopted the rule in 2016 under the leadership of then-Labor Secretary Tom Perez, who now leads the Democratic Party. Perez hailed the rule as "historic" in an exit memo posted to the White House website in the closing days of the Obama administration. He said the rule was designed to protect consumers from financial advisers who steer them toward trades or investments that come with more lucrative fees. "In 2016, the Department took a historic step to protect the savings of America's workers·--·the conflict of interest rule makes sure that professionals providing retirement investment advice have to give advice that's in the best interest of their clients and not divert their clients' hard-earned income into their own pockets through hidden fees and conflicted advice," he said. Roe and his colleagues are now asking the department to end the rule, They argue that brokerage firms that manage retirement: accounts have already begun preparing for the rule by boosting account minimums, which could freeze small investors from having access to financial advisers. "This rule will have significant consequences for our constituents ..many of whom would prefer to continue receiving advice that was previously available," the letter said. "Long-term certainty is critical for investment advisers to be able to offer sustainable retirement advice models, and with many firms preparing for nearly a year for implementation of the original rule, many firms are now in limbo as to whether to continue with plans to implement: more restrictive retirement-advice plans." Labor watchdogs also have called for an end to the rule. The pro-free market Competitive Enterprise Institute objected to the rule on the grounds that the agency overstepped its power to bring financial advisers under the Labor Department's umbrella. DOL-17-0281-K-000001 AO 836892 OSEC 000001 "The DOL clearly went beyond its authority from Congress by regulating the entire retirement system of 401(k)s and individual retirement accounts.," CEI scholar John Berlau said in a statement following Acosta's confirmation on Thursday. "Secretary Acosta should make sure this review is thorough and complete before the rule takes effect, so middle class savers do not suffer unnecessadly." The Trump administration ordered a review of the rule in February. The department delayed its implementation days in April. If Acosta does not block the regulation, it will go into effect on June 9. for 60 ■ Not Res pons1ve DOL-17-0281-K-000002 AO 836892 OSEC 000002 Not Responsive Labor Spending Battle Likely The bill doesn't include a provision floated by House Republicans in a previous spending measure that would have blocked the Labor Department's fiduciary rule. The DOL pushed back the rule, intended to limit retirement investment advisers' conflicts of interest, until June, after President Donald Trump instructed the department to reconsider the regulation. Not Responsive DOL-17-0281-K-000003 AO 836892 OSEC 000003 Not Responsive DOL-17-0281-K-000004 AO 836892 OSEC 000004 Not Responsive DOL-17-0281-K-000005 AO 836892 OSEC 000005 Not Responsive Overtime Rule: Multiple Moving Parts The overtime regulation, a high-profile piece of Obama' s middle-class agenda, would have taken effect last December. But it was blocked by a federal judge in Texas (Nevada v. DOL, E.D. Tex., No. 4:16-CV-00731, motion granted 11/22/16). DOL-17-0281-K-000006 AO 836892 OSEC 000006 The Fair Labor Standards Act (FLSA) generally requires employers to pay workers time-and-a-half wages for all hours worked beyond 40 per \veek. The law also delegates to the labor secretary the power to determine w-hich workers should be removed from overtime requirements under the law's white-collar exemption for those in executive, administrative or professional positions. The overtime standards created in 2004 by President George W. Bush's administration allow employers to exempt workers who make more than $23,500 annually and perform certain managerial duties. \\'nen the DOL rolled out the new rule in 2015, then-Labor Secretary Thomas Perez said doubling the threshold was the easiest way to put more money in workers' pockets and avoid some of the uncertainty that comes with the "duties test" for determining \vhether the whitecollar exemption applies. But Acosta may have a different take. Although the rule sparked a debate over where to set the salary threshold, Acosta pointed out that in the Texas case, Judge Amos Mazzant of the Eastern District of Texas raised questions about whether the DOL should instead focus on the actual duties workers perform. "One of the questions that's in litigation is does a dollar threshold supersede the duties test and, as a result, is it not in accordance with the law," Acosta told the Senate panel during his March 22 confirmation hearing. "I mention that because I think the authority of the secretary to address this is a separate question from what the correct amount is." Acosta did suggest, however, that he would be open to increasing the salary threshold somewhat, to account for cost-ofliving increases since the amount was raised in 2004. The comments came as the DOL was still deciding whether to continue to litigate the case in Texas. The agency is expected to eventually issue a new overtime rule, possibly \vith a smaller salary threshold increase ... unless the judge throws a wrench in the plan by ruling increases in the salary threshold inappropriate. Not Responsive DOL-17-0281-K-000007 AO 836892 OSEC 000007 Not Responsive Fiduciary Rule Under the Microscope at the DOL As for the fiduciary rule, Acosta's comment that it goes too far could mean the fate of the embattled regulation is sealed. And if the rule is to be deep-sixed, it will likely be by the agency. The courts don't seem to want to throw the Obama-era regulation overboard. Multiple industry groups and companies have filed lawsuits challenging the rule from a variety of angles. Every federal judge to have ruled on these cases has upheld the rule in its entirety, handing losses to the U.S. Chamber of Commerce and ACLI, Market Synergy Group and the National Association for Fixed Annuities. At press time, another case was pending before a federal judge in Minnesota. But the pressure is on from the top, as President Trump has specifically ordered the agency to take a closer look at the rule. The Trump administration delayed the April 10 applicability date to June 9, giving the agency a chance to comply with the presidential directive. The Trump memo listed three factors for the DOL to consider: I) whether the rule would eliminate consumers' choice of products; 2) whether it would cause disruption in the retirement market to the detriment of consumers; and 3) whether it would increase litigation. A positive finding on any one of those factors would be cause for a proposal to rescind or revise the rule, the memo said. Not Responsive DOL-17-0281-K-000008 AO 836892 OSEC 000008 Not Responsive DOL-17-0281-K-000009 AO 836892 OSEC 000009 Not Responsive DOL-17-0281-K-000010 AO 836892 OSEC 000010 Message From: r:~;::::~iit;::::::'.::L ________________ J~}(~l_ _________________ __i Sent: To: CC: r--R..~-~~Qt_<>__________________________ 1 Sent: To: CC: [t~(~I~~t:a:'.J ____________________ ----------------------------------------{ b_){_6 )_____________________________ .------------------___i i i (b)(G) Rogers, Jillian B - OSEC I {b}{6} .}... b)(6) ~ !Smith, Gavin J - OSEC ~--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·· ·-·-· ( 1 Subject: !______ c_:rner, ! i (b)(G)i ' Morning Clips: 5/5 '·-·-·-·-·-·' Wayne D- OSEC Morning News Clips: 5/5/17 5/4 Think Advisor R. Alexander Acosta 2017 IA 25 5/4 CNN Pence talks immigration at Cinco de Mayo celebration Click Here 5/4 Paychex Worx New Labor Secretary Acosta Expected to Act on Stalled Final Overtime Rule Click Here 5/4 Politico The one weird court case linking Trump, Clinton, and a billionaire pedophile Click Here 5/4 Equipment World Silica rule controversy continues despite OSHA enforcement delay Click Here 5/5 The Hill Pence at Cinco de Mayo party: Trump has made Latinos 'a priority' Click Here Article 1 R. Alexander Acosta - Fiduciary Foreman: The Click Here Fiduciary Foreman: The 2017 IA 25 Think Advisor Melanie Waddell 5/4 In last year's IA 25, we said that former Labor Secretary Thomas Perez would be credited with forever changing the retirement advice landscape due to his perseverance in getting the fiduciary rule across the finish line. Oddly, the same can be said this year of new Labor Secretary R. Alexander Acosta. The full Senate confirmed Acosta as Labor Secretary on April 27 by a 60-38 vote. Under his direction, Acosta will be in charge of unwinding - and potentially killing - Labor's fiduciary rule. A rule six years in the making. DOL-17-0281-K-000035 AO 836892 OSEC 000035 Indeed, he was bombarded with letters from lawmakers his first day on the job pressuring him to further delay the rule's June 9 compliance date or delay it permanently. At his confirmation hearing in mid-March before the HELPCommittee, Acosta - former law dean at the public Florida International University in Miami - said that he would follow President Donald Trump's Feb. 3 executive order directing Labor to review its fiduciary rule. Not long after, Labor issued a final rule delaying the fiduciary rule's compliance date - from April 10 to June 9 - after getting the okay from the Office of Management and Budget. While the effective date has been pushed back, the debate over the fiduciary rule's content and the structure of the related exemptions "is far from over," noted ERISAattorneys Fred Reish and Joshua Waldbeser, in a recent alert to clients. The regulation included additional surprises related to the expanded definition of "fiduciary" investment advice, PTE84-24 (which deals with annuities) and the transition period of the Best Interest Contract Exemption. "It appears likely that there will be more changes made to the rule and exemptions, following the DOL's review process," the Drinker Biddle attorneys said. Further delays beyond June 9 "may still be possible given the presidential order directing the DOL to review" the rule and decide whether it should be revised or withdrawn, Reish and Waldbeser said. Allison Weilobob, counsel with Sutherland Eversheds, said Wednesday that under Acosta's leadership, "any change to the rule's course for the rest of 2017 (as set in the delay rulemaking) won't be made until sometime after June 9." So the rule will kick in on that date, she predicts. Waldbeser agreed. "It would take some very quick and decisive work to get another delay pushed through before June 9," he said Wednesday. "Also, the tenor of the existing delaying regulation indicates that no further delays should be expected in the short term. My consistent advice to clients has been to assume that the applicability date will in fact come to pass on June 9, and to prepare for compliance with the limited requirements in the PT exemptions during the transition period." Reish concurred, stating that he expects the rule will apply on June 9, "but that then the DOL will be reviewing the impact of the rule and the exemptions on investors, as outlined in the Presidential Memorandum." DOL-17-0281-K-000036 AO 836892 OSEC 000036 If all goes as expected, Reish continued, "we could see proposed amendments to the rule and exemptions shortly after Labor Day and the final versions around the first of November. But that strikes me as ambitious. As a result, I wouldn't be surprised to see the fiduciary rule stay in effect as is for another six months or so into 2018 -- and for the transition versions of the exemptions to continue for that period as well." Not Responsive Not Responsive DOL-17-0281-K-000037 AO 836892 OSEC 000037 Not Responsive DOL-17-0281-K-000038 AO 836892 OSEC 000038 Not Responsive DOL-17-0281-K-000039 AO 836892 OSEC 000039 Not Responsive DOL-17-0281-K-000040 AO 836892 OSEC 000040 Not Responsive DOL-17-0281-K-000041 AO 836892 OSEC 000041 Not Responsive DOL-17-0281-K-000042 AO 836892 OSEC 000042 Not Responsive DOL-17-0281-K-000043 AO 836892 OSEC 000043 Not Responsive DOL-17-0281-K-000044 AO 836892 OSEC 000044 Not Responsive DOL-17-0281-K-000045 AO 836892 OSEC 000045 Not Responsive DOL-17-0281-K-000046 AO 836892 OSEC 000046 Not Responsive DOL-17-0281-K-000047 AO 836892 OSEC 00004 7 Not Responsive DOL-17-0281-K-000048 AO 836892 OSEC 000048 Not Responsive DOL-17-0281-K-000049 AO 836892 OSEC 000049 Not Responsive DOL-17-0281-K-000050 AO 836892 OSEC 000050 Message From: Sent: To: CC: Subject: Morning News Clips: 5/8/17 5/8 Morning Consult Acosta, Labor Department Need to Act Swiftly on Fiduciary Regulation Click Here 5/8 Washington Examiner All the ways Trump's policies are stuck in the swamp Click Here 5/7 Workers World On the picket line Click Here Article 1 Acosta Labor De art ment Need to Act Swift! on Fiduciar Re ulation Morning Consult Dirk Kem thorne 5 8 Joining a president's cabinet is one of the most exciting and rewarding adventures in public life, which the Labor Department's new secretary, Alex Acosta, will find. The opportunities to help people abound. One of those opportunities relates to the department's fiduciary regulation, which is doing more harm than good to America's retirement savers . Among many things, it attacks simple and successful "buy-and-hold" investment and retirement income strategies employed by millions of Americans. The regulation's bias in favor of fee-based advisory services, which tend to be the preference of the wealthy, is already having a chilling effect It has greatly diminished retirement savers' access to annuities, the only financial products in the private marketplace guaranteeing lifetime income . Study after study and article after article have documented the harm the regulation is doing to people saving for retirement Sales of variable annuities, which help people grow their money over the long term while also offering DOL-17-0281-K-000051 AO 836892 OSEC 000051 a lifetime income option, are down dramatically . Meanwhile, other firms may actually increase commissions to annuity distributors to cover increased costs they will face as a result of the regulation, a move that results in lower credited interest rates on annuities - in effect, less income for retirees. Under the Department of Labor's regulation, the commissioned-based buy-and-hold sales model is fraught with new litigation risks - an open invitation for trial lawyers to sue financial firms and locally based financial professionals. It is no surprise that many large financial service firms have shifted to advisory services that charge fees based on assets under management with high minimum account value requirements. Low- and middle-income savers are now left to fend for themselves at the very time they need more access to education and information about retirement savings and guaranteed lifetime income options . Suggestions from the department that computer-generated asset allocations from "robo-advisers" will help fill the void don't make sense, especially for retirement savers with small- to mid-sized account values. The department itself has conceded that automated advice likely does not offer the same benefits as financial professionals benefits that include encouraging greater savings, responding to client-specific questions and dissuading emotional investing, such as liquidating assets during a downturn like the 2008 market crash . Thus, the department has failed to explain how computer -generated asset allocation platforms, given these crucial limitations, can serve as an adequate substitute for a financial professional. Over the past 40 years, the retirement landscape has changed . Few employers now provide "defined benefit" pension plans that offer lifetime income in retirement. Today, employees are more likely to participate in 401 (k) plans, and are largely responsible for saving and investing decisions, along with ensuring their savings last a lifetime . With lifespans increasing, many retirees will need to secure enough income to last 30 years or longer. Hence, the importance of annuities. The White House made clear in a Feb . 3 memorandum that the fiduciary regulation required another look It instructed the department to analyze and determine if the regulation: harms investors by reducing Americans' access to retirement products or advice; disrupts the retirement services industry that may adversely affect investors or retirees; or causes increased litigation risk and higher prices for retirement products for investors and retirees. If the department answers any of the statements affirmatively, it is instructed to issue a proposal to rescind or revise the regulation . Any objective analysis would conclude that all three statements are true. But, while the department conducts its required review to determine whether to keep, repeal or revise the regulation, it plans to put key aspects of the regulation into effect on June 9. This is not acceptable. The secretary of Labor must delay the fiduciary regulation DOL-17-0281-K-000052 AO 836892 OSEC 000052 until the department has completed its examination to the satisfaction of the president. The path forward for Acosta is clear . Any proposal that makes it harder for Americans to obtain the financial products and services they want and need should return to the drawing board. Life insurers strongly support a workable rule and appropriately tailored regulations requiring financial professionals to act in their customers' best interest. Government rules should encourage private sector efforts to help people obtain what the department itself found is possible: a more satisfying retirement thanks to a steady stream of lifetime income. The current regulation does just the opposite. Dirk Kempthorne is the president and CEOof the American Council of Life Insurers. He was the 49th U.S.Secretary of the Interior, and has also served as a _qovernor of Idaho, a U.S.senator from Idaho and mayor of Boise. Not Responsive DOL-17-0281-K-000053 AO 836892 OSEC 000053 Not Responsive DOL-17-0281-K-000054 AO 836892 OSEC 000054 Not Responsive DOL-17-0281-K-000055 AO 836892 OSEC 000055 Not Responsive DOL-17-0281-K-000056 AO 836892 OSEC 000056 Not Responsive DOL-17-0281-K-000057 AO 836892 OSEC 000057 Not Responsive DOL-17-0281-K-000058 AO 836892 OSEC 000058 Not Responsive DOL-17-0281-K-000059 AO 836892 OSEC 000059 Not Responsive DOL-17-0281-K-000060 AO 836892 OSEC 000060 Not Responsive DOL-17-0281-K-000061 AO 836892 OSEC 000061 Not Responsive DOL-17-0281-K-000062 AO 836892 OSEC 000062 Not Responsive DOL-17-0281-K-000063 AO 836892 OSEC 000063 Not Responsive DOL-17-0281-K-000064 AO 836892 OSEC 000064 Not Responsive DOL-17-0281-K-000065 AO 836892 OSEC 000065 Not Responsive DOL-17-0281-K-000066 AO 836892 OSEC 000066 Not Responsive DOL-17-0281-K-000067 AO 836892 OSEC 000067 Not Responsive DOL-17-0281-K-000068 AO 836892 OSEC 000068 Not Responsive DOL-17-0281-K-000069 AO 836892 OSEC 000069 Message From: Sent: To: Subject: FYI below -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. ,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•,•.:-. l {b){6) .... ,.,•,•,•,• :::i:~~':L~::~~:ge~ 1;i~i~y L - OSEC" I J g p •---------------------------------------Date: 08 May 2017 16:49 (b)(6) l To: "RA Acosta"i Cc: "Smith GavinT:::-usEC""r·-·-·-·-·-·-·-·-·-·-·-·-·1/·s-·-·-·-·-·-·-·-·-·-·-·-·-·1 "Ro ers Jillian B - OSEC" ,·-·-·-·-·-·-·-·-·-·-·-·-·"·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·",.---·-·-·-·-·-·-·-·-·-·_(__)_( _ _) ________________________ J ;----~------->----·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-; l__________________________ J~)i~_t________________________ j "Palmer, Wayne D - 0 SEC"!__ ______________________________ ( b)(6)-·-·-·-·-·-·-·-·-·-·-·-·-·-·-___! ·-·-·-·-·-·-·-Even i ng N ew s.CIi ps:.5/ 8/ 17 ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Not Responsive ·-·-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-· 5/8 Investment News Opponents of DOL fiduciary rule want SECto modify suitability standard Click Here 5/8 Bloomberg Dodd-Frank Overhaul Could Cause Fiduciary Rule Mess Click Here Not Responsive DOL-17-0281-K-000070 AO 836892 OSEC 000070 Not Responsive DOL-17-0281-K-000071 AO 836892 OSEC 000071 Not Responsive DOL-17-0281-K-000072 AO 836892 OSEC 000072 Not Responsive DOL-17-0281-K-000073 AO 836892 OSEC 000073 Not Responsive DOL-17-0281-K-000074 AO 836892 OSEC 00007 4 Not Responsive DOL-17-0281-K-000075 AO 836892 OSEC 000075 Not Responsive DOL-17-0281-K-000076 AO 836892 OSEC 000076 Not Responsive DOL-17-0281-K-000077 AO 836892 OSEC 000077 Not Responsive DOL-17-0281-K-000078 AO 836892 OSEC 000078 Not Responsive DOL-17-0281-K-000079 AO 836892 OSEC 000079 Not Responsive DOL-17-0281-K-000080 AO 836892 OSEC 000080 Not Responsive DOL-17-0281-K-000081 AO 836892 OSEC 000081 .--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 i i Not Responsive I i i. ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- I i .i Artide 9 Opponents of DOL fiduciary ru le want SECto modify suitability standard Investment News Mark Schoeff Jr. 5/8 Some suspense surrounds the fate of the Department of Labor fiduciary rule. Among the cliffhangers: Will new Labor Secretary Alexander Acosta extend the delay of the regulation's implementation date beyond June 9? What part of the rule will be modified as a result of the reassessment called for by President Donald J. Trump? Or will it be repealed altogether? If it is repealed, will the Securit ies and Exchange Commission step into the void and propose its own uniform fiduciary rule for retail investment advice? Here's a question that's not so suspenseful: What kind of new fiduciary standard is on the wish list of industry opponents of the DOL rule? Spoiler alert : They don't want one. They want a modification of the suitability standard that governs brokers' sales of investment products, and they want it to focus on disclosure. The Investment Company Institute, which represents the mutual fund industry, is the latest trade association to state the direction in which it wants the advice debate to go. "We are calling upon the SECto propose a harmonized best-interest standard for broker-dealers that would enhance, rather than replace, existing suitability obligations," ICI president and chief executive Paul Schott Stevens said at the organization's genera l membership meet ing last week. The !Cl's defense of the suitability standard, which requires brokers to sell investment products that suit a client's risk tolerance, time horizon and other factors, resembles the approach the Securities Industry and Financial Markets Association is advocating. SIFMA, another major trade association for financial firms, has proposed its own best-interest standard. What SIFMA did is essentially update the suitability standard. The recent statement by Mr. Stevens and the outline provided by SIFMA draws the battle lines for a possible SECattempt to write its own fiduciary rule, should the DOL measure be substantially changed or eliminated. Proponents will say - in fact, have said - that the industry is proposing a fiduciary standard "in name only." Tweaking the suitability standard doesn't make it a true best-interest standard like the one that investment advisers must now meet. Backers of the DOL rule say it is the closest regulators have come to establishing a fiduciary standard. In fact, a participant on an ICI panel following Mr. Stevens' speech wondered why so many in the industry are resisting the DOL regulation's requirement that financial advisers act in the best interest of their clients in retirement accounts. DOL-17-0281-K-000082 AO 836892 OSEC 000082 "It strains credulity to say, 'Let's not have a rule that forces us to do that,"' Eli Braverman, co-founder of Betterment, said at the ICI event. He was responding to another industry official who joined him on the ICI panel, Ben Huneke, managing director and head of investment solutions at Morgan Stanley Wealth Management. Mr. Huneke said he supports a best-interest standard for advice, but that the DOL rule "has a lot of unfortunate consequences practically." "The high-level direction is good for the industry, and we embrace it," Mr. Huneke said. Sorting out what that means won't be easy. "The devil's in the details," said Skip Schweiss, managing director of adviser advocacy and industry affairs at TD Ameritrade Institutional, in an interview . "What does a harmonized best-interest standard look like?" The industry wants a best-interest standard but also wants suitability to be its foundation. That's fodder for a many-years war, if not a 100 Years War. Article 10 Dodd-Frank Overhaul Could Cause Fiduciary Rule Mess Bloomberg Kristen Ricaurte Knebel 5/8 A major overhaul of the Dodd-Frank Act that would also repeal the DOL's fiduciary rule could cause a mess for the financial services industry if it is enacted after the rule's June 9 applicability date. One provision in the Financial Choice Act ( H.R. 10) would permanently put the brakes on the Labor Department rule that aims to reduce the allegedly conflicted investment advice given to retirement savers. In addition, it would prevent the department from going forward with any other fiduciary rule without the Securities and Exchange Commission developing and finalizing a rule first. The SEChad been working toward its own fiduciary rule that would harmonize the different legal standards applicable to professionals who give investment advice, but nothing has materialized yet. If Congress wants a shot at stopping the fiduciary rule through legislation, they are racing the clock against the rule's applicability date, Andrew L. Cringer, a partner with Dechert LLPin New York and co-chair of the firm's ERISAand executive compensation group, told Bloomberg BNA. The problem is, it's not clear the Senate feels a sense of urgency to pass the legislation before that date, he said. The legislation was approved by the House Financial Services Committee May 4 on a 34-26 party-line vote. The vote concluded a three-day markup of the bill, during which Democrats slowed the process and unsuccessfully tried to remove various portions of the bill. Another Avenue If the bill doesn't become law by June 9, "it's a different game because it's much easier to hold back on a new regulatory initiative before it becomes applicable," Cringer said. Portions of the rule are set to become applicable June 9. Other portions are delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency. DOL-17-0281-K-000083 AO 836892 OSEC 000083 Many who need to comply with the fiduciary rule have already started and are pushing forward with compliance efforts in anticipation of the rule's applicability, Jason C. Roberts, chief executive officer at the Pension Resources Institute, told Bloomberg BNA. "There would be significant sunk costs that are already on the books," Roberts said. Those costs "will continue to mount while a bill is working its way through to become a law." If the legislation were to pass, unwinding things that are already in place "would be a substantial undertaking," Roberts said. Not Responsive Not Responsive DOL-17-0281-K-000084 AO 836892 OSEC 000084 Not Responsive DOL-17-0281-K-000085 AO 836892 OSEC 000085 Message From: Sent: To: [~~~~~~~-ri1~-it~~~~~J.~1 ____________________________________ (b)(s) __________________________ I 5/8/2017 5 :5 8 :20 .PM-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·, 1 l__ "c',_~'?!'' b)(6) IGeale, Nicholas C.- SOL 1 ( b) (6) ·-----------------------------------------------------------------------------------------------------------------------------------------------------J l { ::::r !~lrme,,Wayne D _ OSEC l___________ b){6) ! ( Subject: f RE: Even ingCl I p s 5/ g·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-L ____________ J Sounds good. From: RAAcosta Sent: Monday, May 08, 2017 5:56 PM To: Geale, NicholasC - SOL; Palmer,Wayne D - OSEC;Ray, PaulJ - OSEC Subject: Fwd: EveningClips 5/8 Let's discuss in am From: "Lineberger, Timothy L - 0 SEC" [:.·:.·:.·:.·:.·:.·:.·:.·:.=·:.·:.·:.·:.·:.·:.·:.f~@C.·:.·:.·:~·:.·:.·:.·:.·:.·:.·:.·~-:.·:.·:.·J Subject: Evening Clips 5/8 Date: 08 May 2017 16:49 To: "RA Acosta" i (b)(6) i Cc: "Smith Gavi~ J - OSEC" i (b)(G) i "Rogers ' Jillian B - OSEC" ___,__,,,,_..,...!!!>'.............. _.......... -•-,•• i (b )(6) ~> "Palmer W avne D - OSEC" r-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1iiii.si·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-i 1---·~--~~~---L--·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-•-•-..,_,,.·-·-·-·-·-·-·-•-·-·-·-·-·~ -·-·-·-·-·-·-·-·-·-·-·-·-·-'-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· L_. ___ ? ? .., ·-·-·-·-·-·-·-·i: '""-"'-LD.a_Jilauu::. Cli "'" • C./0 /;'I "7·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Not Responsive DOL-17-0281-K-000086 AO 836892 OSEC 000086 Not Responsive 5/8 Investment News Opponents of DOL fiduciary rule want SECto modify suitability standard Click Here 5/8 Bloomberg Dodd-Frank Overhaul Could Cause Fiduciary Rule Mess Click Here Not Responsive Not Responsive DOL-17-0281-K-000087 AO 836892 OSEC 000087 Not Responsive DOL-17-0281-K-000088 AO 836892 OSEC 000088 Not Responsive DOL-17-0281-K-000089 AO 836892 OSEC 000089 Not Responsive DOL-17-0281-K-000090 AO 836892 OSEC 000090 Not Responsive DOL-17-0281-K-000091 AO 836892 OSEC 000091 Not Responsive DOL-17-0281-K-000092 AO 836892 OSEC 000092 Not Responsive DOL-17-0281-K-000093 AO 836892 OSEC 000093 Not Responsive DOL-17-0281-K-000094 AO 836892 OSEC 000094 Not Responsive DOL-17-0281-K-000095 AO 836892 OSEC 000095 Not Responsive DOL-17-0281-K-000096 AO 836892 OSEC 000096 Not Responsive DOL-17-0281-K-000097 AO 836892 OSEC 000097 Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Artide 9 OQQOnentsof DOL fiduciary rule want SECto modify suitability standard Investment News Mark Schoeff Jr. 5/8 Some suspense surrounds the fate of the DeQartment of Labor fiduciary ru le. Among the cliffhangers: Will new Labor Secretary Alexander Acosta extend the delay of the regulation's implementation date beyond June 9? What part of the rule will be modified as a result of the reassessment called for by President Donald J. Trump? Or will it be repealed altogether? If it is repealed, will the Securit ies and Exchange Commission steQ into the void and propose its own uniform fiduciary rule for retail investment advice? Here's a question that's not so suspenseful : What kind of new fiduciary standard is on the wish list of industry opponents of the DOL rule? Spoiler alert: They don't want one. They want a modification of the suitability standard that governs brokers' sales of investment products, and they want it to focus on disclosure. The Investment Company Institute, which represents the mutual fund industry, is the latest trade association to state the direction in which it wants the advice debate to go. "We are calling upon the SECto propose a harmonized best-interest standard for broker-dealers that would enhance, rather than replace, existing suitability obligations," ICI president and chief executive Paul Schott Stevens said at the organization's general membershiQ meeting last week. The !Cl's defense of the suitability standard, which requires brokers to sell investment products that suit a client's risk tolerance, time horizon and other factors, resembles the apQroach the Securities Industry and Financial Markets Association is advocating. SIFMA, another major trade association for financial firms, has proposed its own best-interest standard. What DOL-17-0281-K-000098 AO 836892 OSEC 000098 SIFMA did is essentially update the suitability standard. The recent statement by Mr. Stevens and the outline provided by SIFMA draws the battle lines for a possible SECattempt to write its own fiduciary rule, should the DOL measure be substantially changed or eliminated. Proponents will say - in fact, have said - that the industry is proposing a fiduciary standard "in name only." Tweaking the suitability standard doesn't make it a true best-interest standard like the one that investment advisers must now meet. Backers of the DOL rule say it is the closest regulators have come to establishing a fiduciary standard. In fact, a participant on an ICI panel following Mr. Stevens' speech wondered why so many in the industry are resisting the DOL regulation's requirement that financial advisers act in the best interest of their clients in retirement accounts. "It strains credulity to say, 'Let's not have a rule that forces us to do that,"' Eli Braverman, co-founder of Betterment, said at the ICI event. He was responding to another industry official who joined him on the ICI panel, Ben Huneke, managing director and head of investment solutions at Morgan Stanley Wealth Management. Mr. Huneke said he supports a best-interest standard for advice, but that the DOL rule "has a lot of unfortunate consequences practically ." "The high-level direction is good for the industry, and we embrace it," Mr. Huneke said. Sorting out what that means won't be easy. "The devil 's in the details," said Skip Schweiss, managing director of adviser advocacy and industry affairs at TD Ameritrade Institut ional, in an interview. "What does a harmonized best-interest standard look like?" The industry wants a best-interest standard but also wants suitability to be its foundation . That's fodder for a many-years war, if not a 100 Years War. Article 10 Dodd-Frank Overhaul Could Cause Fiduciary Rule Mess Bloomberg Kristen Ricaurte Knebel 5/8 A major overhaul of the Dodd-Frank Act that would also repeal the DOL's fiduciary rule could cause a mess for the financial services industry if it is enacted after the rule's June 9 applicability date. One provision in the Financial Choice Act ( H.R. 10) would permanently put the brakes on the Labor Department rule that aims to reduce the allegedly conflicted investment advice given to retirement savers. In addition, it would prevent the department from going forward with any other fiduciary rule without the Securities and Exchange Commission developing and finalizing a rule first. The SEChad been working toward its own fiduciary rule that would harmonize the different legal standards applicable to professionals who give investment advice, but nothing has materialized yet. If Congress wants a shot at stopping the fiduciary rule through legislation, they are racing the clock against the rule's applicability date, Andrew L. Oringer, a partner with Dechert LLPin New York and co-chair of the firm's ERISAand executive compensation group, told Bloomberg BNA. The problem is, it's not clear the Senate feels DOL-17-0281-K-000099 AO 836892 OSEC 000099 a sense of urgency to pass the legislation before that date, he said. The legislation was approved by the House Financial Services Committee May 4 on a 34-26 party-line vote. The vote concluded a three-day markup of the bill, during which Democrats slowed the process and unsuccessfully tried to remove various portions of the bill. Another Avenue If the bill doesn't become law by June 9, "it's a different game because it's much easier to hold back on a new regulatory initiative before it becomes applicable," Oringer said. Portions of the rule are set to become applicable June 9. Other portions are delayed until at least Jan. 1, 2018, while the rule is under a president ially mandated review by the agency . Many who need to comply with the fiduciary rule have already started and are pushing forward with compliance efforts in anticipation of the rule's applicability, Jason C. Roberts, chief executive officer at the Pension Resources Institute, told Bloomberg BNA. "There would be significant sunk costs that are already on the books," Roberts said. Those costs "will continue to mount while a bill is working its way through to become a law." If the legislation were to pass, unwinding things that are already in place "would be a substantial undertaking," Roberts said. Not Responsive Not Responsive DOL-17-0281-K-000100 AO 836892 OSEC 000100 Not Responsive DOL-17-0281-K-000101 AO 836892 OSEC 000101 Message From: Sent: To: CC: Subject: Morning News Clips: 5/9/17 5/8 Benefits Pro Sec. Acosta under pressure from lawmakers, industry to further delay fiduciary rule Click Here Not Responsive I_ _j Article 1 Sec. Acosta under Qressure from lawmakers, industry to further delay fiduciary rule Benefits Pro Nick Thornton 5/8 It took most of President Trump's first 100 days in office to get his Labor Secretary in place. But it took just minutes after the swearing in of Alexander Acosta for industry to mount calls for him to further extend the June 9 implementation data of the fiduciary rule. The Financial Services Roundtable was among industry organizations to offer a quick congratulation to Sec. Acosta, and call on him to delay the entirety of the rule until the agency completes the new economic and legal analysis ordered by Presidential memorandum. And days later, more than 100 Republican lawmakers in the House of Representatives followed suit, "strongly" encouraging Acosta to issue a further delay until the new analysis of the rule is completed. In April, Labor's Employee Benefits Security Administration delayed the implementation of the rule's impartial conduct standard until June 9, when all advice on IRAs and 401(k) plans with less than $50 million in assets will have to be made in retirement investors' best interests, compensation will have to be reasonable, and service providers will be prohibited from giving misleading statements. Under the original implementation date schedule, firms were required to acknowledge their fiduciary status in writing, along with a description of material conflicts of interest. But under the delay, that requirement was pushed off until January 1, 2018, when full compliance with the rule is slated. Some attorneys described the delay in requiring written acknowledgement of fiduciary status as significant relief. In issuing the delay, EBSAofficials said they took a "balanced" approach, and called the delay "noncontroversial." But opponents of the rule did not agree with that assessment. DOL-17-0281-K-000102 AO 836892 OSEC 000102 Attorneys for Davis & Harmon, which lobbies on behalf of financial services and insurance providers, said the claim that the delay was noncon t roversial is inconsistent with the "thousands of pages of intense concerns about the definition of a fiduciary" made in comments to Labor throughout the rulemaking process. TIAA, Vanguard, LPL, FINRA, the American Benefits Council, and the Committee of Annuity Insurers were among Davis & Harmon's clients in 2016, according to opensecrets .org . Labor officials have said they expect the full analysis of the rule to be completed by January 1, 2018, when providers will have to comply with the rule's Best Interest Contract Exemption, and be subject to its private right of action provision . Some analysts have portrayed Labor's June 9 impartial standard requirement as an act of open defiance against President Trump's memorandum. In a recent opinion piece published in The Hill, Douglas Holtz-Eakin, president of the American Action Forum, a conservative think tank, called Labor's decision to implement the impartial conduct standard on June 9 "bureaucratic tomfoolery at its finest" that should not be tolerated. "Holdover Obama administration employees at DOL snuck language into the 60-day delay rule that effectively says, 'we don't care what the president ordered. You can have your 60-day delay, but the rule will go into effect immediately on day 61 no matter what'," wrote Holtz-Eakin. Some corners of the financial services and insurance industries appear to be embracing that thesis. A letter by the National Association of Fixed Annuities, which is mounting an appeal of a ruling in the Washington, D.C. District Court that upheld the fiduciary rule, said the organization is appealing directly to President Trump and Secretary Acosta to stop any part of the rule from being implemented before the full analysis ordered by Trump is completed. "We have a little more than a month to stop this runaway train," the letter said. "NAFA is pulling out all the stops to try to prevent any part of this rule going live on June 9th." -;r·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- . Not Responsive DOL-17-0281-K-000103 AO 836892 OSEC 000103 Not Responsive DOL-17-0281-K-000104 AO 836892 OSEC 000104 Message Subject: Lineberger, Timothy L - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 5/9/2017 4:48:55 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en =15dc286768d945dc9fcda83 7095195fd-RA Acosta] Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en =525c205 7 d4a 14206a99bf3aa8a80e004-Pa Imer, Way] Evening Clips 5/9 Flag: Follow up From: Sent: To: CC: Evening News Clips: 5/9/17 ,[_____________________ (_______________________________ [_______________________________________________________ [________________ ]______ Not Responsive ! j_ •-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-• •-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-• i •-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-• •-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•- 5/9 Nasdaq House Tells DOL to Repeal Fiduciary Rule Click Here 5/9 Insurance News Net DOL Rule, Dodd-Frank Face Intransigent Senate Click Here -•-•-•-•-• Not Responsive DOL-17-0281-K-000105 AO 836892 OSEC 000105 I Not Responsive DOL-17-0281-K-000106 AO 836892 OSEC 000106 Not Responsive Not Responsive ;... Article 2 House Tells DOL to Repeal Fiduciary Rule Nasdaq Duncan MacDonald-Korth 5/9 This bit of news will be welcome to most advisors' ears. The battle over the fiduciary rule has been reaching a fevered pitch recently, and the opposing side seems to be winning. On top of the House preparing to vote on the CHOICEAct, which would do away with the rule, the House has told new Department of Labor chief Alexander Acosta to review and then repeal it. The strategy seems to be a direct approach to telling the DOL to undue its own rule. The request took the DOL-17-0281-K-000107 AO 836892 OSEC 000107 form of a letter written to him, composed by over 100 House Republicans. The group told him there was an "urgent need" to act on the rule. Article 3 DOL Rule, Dodd-Frank Face Intransigent Senate Insurance News Net John Hilton 5/9 House legislation to undo much of the Dodd-Frank Act, and put the kibosh on the Department of Labor fiduciary rule, looks unlikely to pass the Senate. The CHOICEbill was passed out of House Financial Services Committee last week by a party line vote. It is expected to pass the full House soon. It includes the Retail Investor Protection Act, introduced by Rep. Ann Wagner, R-Mo. The RIPAwould put the fiduciary rule on hold until the Securities and Exchange Commission acts. While the RIPA, as well as other bills, were folded into the Financial CHOICEAct, dismantling Dodd-Frank is clearly the target. Republicans argue that the Dodd-Frank law is slowing economic growth because of the cost of compliance and by curbing lending. Rep. Maxine Waters, D-Calif., the panel's senior Democrat, called the CHOICEAct "a deeply misguided measure that would bring harm to consumers, investors and our whole economy." "The bill is rotten to the core and incredibly divisive," Waters said. "It's also dead on arrival in the Senate, and has no chance of becoming law." Setting aside the fiduciary rule, longtime Democratic strategist Michael Lewan doesn't see the more moderate Senate doing much with Dodd-Frank either. "Some things are possible on the Volcker Rule, governance, community banks etc.," Lewan wrote via email. "But I cannot see the House version passing the 60-vote threshold." As for the DOL rule, much is going to depend on how new Labor Secretary Alexander Acosta views the fiduciary issue. During his Senate confirmation hearing, he seemed to suggest that the rule goes too far. Acosta also pledged to carry out the directives of President Donald J. Trump, who ordered the DOL to delay the rule in a Feb. 3 memo. The department published a 60-day delay that pushed the rule "applicability date" to June 9. Transition Phase Meanwhile, rule opponents are stepping up lobbying efforts to stave off disruption to the industry. The DOL announced a "transition phase" in which only impartial conduct standards will apply from June 9 until the end of the year. That is not enough, said Chip Anderson, executive director of the National Association of Fixed Annuities. "If the rule itself, along with the so-called Impartial Conduct Standards, are allowed to take effect on June 9, it will be extremely traumatic for our industry, and, worse yet, it will be very harmful to consumers who will lose access to advice and products that are badly needed," he said in a statement. NAFA has launched a White House grassroots campaign to influence the DOL in its final tinkering with the rule. Another DOL-17-0281-K-000108 AO 836892 OSEC 000108 delay is not likely, a former Labor Department undersecretary said last week. The transition period is DOL's compromise, added Bradford P. Campbell, counsel at Drinker Biddle & Reath. "The key message the DOL was trying to send is we're buying time to look at changing t he rule by giving you some interim transitional exemptions that basically just imposed the fiduciary standards as their primary requirements and not all of the additional things that you all have told us you are concerned about," Campbell said. The impartial conduct standards have three requirements: use a best-interest standard, accept only reasonable compensation and make no materially misleading statements. Dodd-Frank Drama Republicans have sought to overhaul the Dodd-Frank legislation for several years, and those prospects brightened when Trump won the White House. The president has denounced Dodd-Frank and promised that his administration would "do a big number" on it . The Financial CHOICEbill would repeal about 40 provisions of the Dodd -Frank Act . Banks could qualify for much of the regulatory relief in the bill so long as they meet a strict basic requirement for building capital to cover unexpected big losses. Republicans argued that big banks have done well under Dodd-Frank, but that community banks and credit unions are struggling to keep up with the regulatory burdens imposed by the law. "This economy is poised to take off, but it's not going to take off as long as Dodd-Frank in its current form remains on the book," said Jeb Hensarling, R-Texas, chairman of the Financial Services Committee. "It's important that we get tax reform done. It's important we get health care reform done, but it's also important we pass the Financial Choice Act." While the measure is expected to pass the full House, in the Senate, it will need 60 votes to become reality, meaning the GOP will need several Demo crats to join thei r effort. Leaders of the Senate panel with jurisdiction over a Dodd-Frank overhaul have said they would like to work together to find areas of common agreement to enhance economic growth. If the Financial CHOICEAct should fail in the Senate, the Wagner bill could re-emerge as an add -on to another piece of legislation. Not Responsive DOL-17-0281-K-000109 AO 836892 OSEC 000109 Not Responsive DOL-17-0281-K-000110 AO 836892 OSEC 000110 Not Responsive DOL-17-0281-K-000111 AO 836892 OSEC 000111 Not Responsive DOL-17-0281-K-000112 AO 836892 OSEC 000112 Not Responsive DOL-17-0281-K-000113 AO 836892 OSEC 000113 Not Responsive DOL-17-0281-K-000114 AO 836892 OSEC 000114 Not Responsive DOL-17-0281-K-000115 AO 836892 OSEC 000115 Not Responsive DOL-17-0281-K-000116 AO 836892 OSEC 000116 Message From: 1-·1 !--~~~~-?.~!.~~!.~-{!~(~r.Y--~-=-9-~-~-~ ( b>( 5/10/2017 6 :41 :04 AM Sent: To: CC: Subject: s> ;·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·' [-5~~~~::~--J~ - _i-~---------------:--_J-~~.~~t _________________ T~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ! OSEC I {b)(6) j, (b)(6) '!Morn ngCI ps 5/ 10 I I 6 ··-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·( b )( !ogers, Jillian B- OSEC !al~er, Wayne D- OSEC ! ,_______ )·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Morning News Clips: 5/10/17 _____ iJiI ,1,1,1,1,1,1,1,1,1,L1LtLLLLL1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,l1,LLilL2,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1 Not Responsive 5/9 Wealth Management Editor's Letter: May 2017 - Back to Square One Click Here ·-·- __.,,,_,.,..;....,1 ____.. ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·- Not Responsive DOL-17-0281-K-000117 AO 836892 OSEC 000117 Not Responsive DOL-17-0281-K-000118 AO 836892 OSEC 000118 Not Responsive DOL-17-0281-K-000119 AO 836892 OSEC 000119 Not Responsive DOL-17-0281-K-000120 AO 836892 OSEC 000120 Not Responsive DOL-17-0281-K-000121 AO 836892 OSEC 000121 Not Responsive DOL-17-0281-K-000122 AO 836892 OSEC 000122 Not Responsive DOL-17-0281-K-000123 AO 836892 OSEC 000123 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Not Responsive Article 5 Editor's Letter: May 2017 - Back to Square One Wealth Management David Armstrong 5/9 Dale Brown, the CEO of the Financial Services Institute, was a keynote speaker at the recent annual conference of the Private Advisor Group, an RIA based in Morristown, New Jersey and an Office of Supervisory Jurisdiction for LPLwith over 600 independent advisors in its group. Brown detailed his organization's efforts to stop the Department of Labor's fiduciary rule and laid out the reasons why he, as well as many in the industry, considers it unworkable. The top reason the rule is a "disaster," in Brown's opinion, is not in its intention, but in its execution. And, the top concern is that it leaves enforcement up to tort attorneys. The Department of Labor has "deputized every plaintiff attorney in the country" to carry out enforcement of the standard, he said. "They've been gathering for months to learn how to sue you. That is a horrific outcome. You face a risk you can't calculate." An advisor in the room asked Brown, if that's the case, what has the industry brought to the table to address the very real concerns that led the Department of Labor to pursue a rule in the first place? "We got something shoved down our throats," the advisor said. "What answer has the industry brought to the table?" It's a good question. Brown suggested he was in favor of letting the Securities and Exchange Commission move forward with its efforts to create a uniform fiduciary duty for all advisors, with simpler disclosure requirements and a structure that would not potentially "orphan" the 28 million mom-and-pop accounts that he believes would be priced out of service under the Department of Labor's version of the rule. But, he conceded, if the SEChas not been able to accomplish this in the seven years since Dodd Frank required it, it's DOL-17-0281-K-000124 AO 836892 OSEC 000124 unlikely to happen now in Washington's current state of transition. Brown said he could see one scenario moving forward: The Trump Administration rolling back the DOL rule, yet, the SECremaining unable to move forward on its uniform fiduciary standard. "We'd be back to square one. That's not acceptable." He suggested the industry should try to adopt its own standard. "How can we, on a voluntary basis, create some best interest principals and practices that firms can subscribe to?" I'm skeptical. There are groups making good efforts. The Institute for the Fiduciary Standard recently launched its program to give certain firms a "seal of approval" if they publically subscribe to the institute's professional conduct standards. There are some 26 advisory firms on board. No doubt those firms are solidly committed to putting clients first, but it remains to be seen if the institute's designation becomes the bar by which all firms are ultimately measured by end clients. Brown made no mention of the institute's efforts to formalize voluntary compliance, and I'm not sure we could expect any endorsement from the FSI. Unfortunately, voluntary compliance is noble, but it won't protect consumers. While the market itself may push all firms toward a more client-focused business model, good intentions and public declarations of fealty won't solve the problem. There are still plenty of so-called advisors out there who see chances to make a quick buck and take them when they can. There needs to be a way to publically call them out on it, and unless the industry is prepared to voluntarily do that, even in the absence of a best interest rule, good intentions won't nearly go far enough. DOL-17-0281-K-000125 AO 836892 OSEC 000125 Message r·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 From: [."~~-~-;!:e!!-:e!~_-:~~;I-~·!:.~.-~-:~-~~~:. :."J { b) {6) I 5/10/2017 4: 5 6 :18 PM '·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·' 1 Sent: To: [-~~-tbj~j~~-L! ·-·-·-·-·-·-·-·-·-,·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-( b)_( 6)·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·,·-·-·-·-·-·-·-·-·-·___i CC: i-·-·-·-·-·-·-·-·-·-·-·- __Smith, _Gavin_J .-.OSEC _I ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-(b )(6)___ __________________________________________ ! !Rogers, Jillian B- OSEC (b)(6) I ( b) (6) r~lmer, Wayne o - OSEC 11•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•L•-•-•-•. (b )(6) i i Subject: ~azelton, Jennifer - i"- (b)(6) , Evening Clips 5/10 ' Evening News Clips: 5/10/17 5/10 NAPA Net Acosta Looking to Freeze DOL Fiduciary Regulation Click Here 5/10 NAPA Net House Republicans Press for Documents on Fiduciary Rule Delay Click Here 5/9!" ____________ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------; ; ; ; ; 5/1!; ; ; ; ! 5/1:; ; ; ; Not Responsive ! 5/1:; ; ; ; ! 5/1!; ; ; ; L--·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· -·-·- Article 1 Acosta Looking to Freeze DOL Fiduciary Regulation NAPA Net Staff report 5/10 Labor Secretary Alexander Acosta says the Department of Labor's fiduciary rule is his number one priority, and that he is actively seeking a way to freeze the rule that will "stick." DOL-17-0281-K-000126 AO 836892 OSEC 000126 Acosta's comments were made during a meeting with Sen. Tim Scott (R-SC),according to a communication from Scott's office. Acosta also said he was in constant communication with the White House and recognized the urgency of the situation. According to the communication, Scott pressed the case against the rule, saying that it wasn't going to hurt Wall Street as much as it will hurt everyday Americans who need access to investment advice. Scott and Acosta met to follow up on a letter that Scott and eight other GOP Senators sent to Acosta on April 28 urging the DOL, "pursuant to the President's memorandum and in light of the numerous concerns with the final fiduciary rule," to carry out "the President's directives without delay and finalize a new fiduciary rule review before any part of the rule becomes applicable." Article 2 House Republicans Press for Documents on Fiduciary Rule Delay NAPA Net Staff report 5/10 Concerned about reports that the Labor Department's delay of the fiduciary rule was crafted to undermine President Trump's directive to reexamine the rule's impact, House Republicans are looking for some answers - and some face time. In an April 28 letter to Secretary of Labor Secretary Alexander Acosta, House Financial Services Chairman Jeb Hensarling (R-TX), Rep. Bill Huizenga (R-MI) and Rep. Ann Wagner (R-MO) note that, "There have been reports that [DOL] employees adopted this approach in a calculated effort to undermine the president's directive." The letter includes a footnote referencing "Labor Department Mutiny," (subscription required) an April 13 Wall Street Journal article suggesting that some DOL officials were undermining the president's directive. For example, the article characterizes the response of the Labor Department in announcing the delay in the rule's applicability date -which said it "would be inappropriate to broadly delay application of the fiduciary definition and Impartial Conduct Standards" - as: "We don't care what an elected President says." Documents Requested The letter asks for all communications relating to the EBSA'simplementation of President Trump's Memorandum of Feb. 3, 2017 between DOL staff and (1) employees at other executive branch agencies, and (2) any non-government entity. It also asks for all communications between staff and any non-government entity related to: the proposed rule published in the Federal Register on March 2; the final rule published in the Federal Register on April 7; and the cost/benefit analysis of the final rule published in the Federal Register on April 7. The letter also asks that EBSADeputy Assistant Secretary Tim Hauser be "available to brief committee staff" on May 10. And finally, "due to the uncertainty facing stakeholders and the millions of customers they serve in the retirement advice industry with respect to provisions of the fiduciary rule coming into effect on June 9 while a comprehensive review of the rule is still ongoing," the letter urges Acosta to "immediately move to extend the applicability date of the fiduciary rule in its entirety." Not Responsive DOL-17-0281-K-000127 AO 836892 OSEC 000127 Not Responsive DOL-17-0281-K-000128 AO 836892 OSEC 000128 Not Responsive DOL-17-0281-K-000129 AO 836892 OSEC 000129 Not Responsive DOL-17-0281-K-000130 AO 836892 OSEC 000130 Not Responsive DOL-17-0281-K-000131 AO 836892 OSEC 000131 Not Responsive DOL-17-0281-K-000132 AO 836892 OSEC 000132 Message t~i{~-r-=-?-~-~L ____ 1 ( b) (6) From: 5 i---~~~~-~~-~i i '-· 5/10/2017 7 :20: 1s·PM --..,.,.,.-______________________________________________________________________________________ , Sent: To: RA Acosta[ ____________________________________________________ (b)(S) ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·: L_______________________________________ Jb)(G) _______________________________________ J Subject: FYI Sorry sent to public initially. From: Gea Ie, Ni ChoIas C. - so L II II r·-·-·-·-·-·-·-·-·-·-·-·-·-tiii"f si-·-·-·-·-·-·-·-·-·-·-·-·-·: Subject: Fyi Date: 10 May 2017 19:08 TO: Acosta, Alexander - OSEC ["-·-·-·-·-·-·-·-·-·-·-·-·-rb)( si-·-·-·-·-·-·-·-·-·-·-·-·-·1 Cc: "Conway, Molly E - OSEC" [·-·-·-·-·-·-·-·-·-·-·-·-tii)isi-·-·-·-·-·-·-·-·-·-·-·-·: II II http://www.napa-net.org/news/technical-competence/regulatory-agencies/acosta-looking-to-freezedol-fiduciary-regulation/ DOL-17-0281-K-000133 AO 836892 OSEC 000133 Message From: Sent: [~~!?~~~~~:~~~:!~~Jful~l~~~~~~~~~~~~~~:J __________________________ {b_){_6)·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·I 5/11/2017 8:13:13 AM i==== To: CC: L.:;::~:::;,J. - OSEC (b)(&) (b)(&) (b)(6)==== i===-_j:::::::::~i {b){6) I rogers,JillianB-OSEC b}{6}-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-.Jai mer, Wayne D - OSEC l---·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·{ ( b)( 6) I !a,eltoo, Jeoo;fec - L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-• Subject: Re: Morning Clips 5/11 FYI (2nd story like this) Nasdaq: New DOL Chief Confirms Plan to Kill Fiduciary Rule http://www. nasdaq. com/a rticle/new-dol-ch ief-confi rms-plan-to-kil 1-fiduciary-ru le-cm 78 7631 Opponents of the fiduciary rule should take heart today. One of the many big questions marks in what has become an almost macabre debacle to unwind the fiduciary rule is where new DOL chief Alex Acosta stood on the rule. Some thought he might not be ardently against it given his background in punishing financial wrongdoing. However, a new email to fiduciary rule opponents released by a Senate aide says that Acosta wants to unwind the rule in a way that "sticks". Internal work within the DOL to undo the rule is one of the strategies being deployed to terminate it, though the passage of the new Choice Act-which has a provision killing the rule-would be the fastest. It has long odds of passing the Senate, however. FINSUM : At least it is clear where Acosta stands now, and it certainly cannot hurt the battle against the fiduciary rule that the head of the agency which made it wants it gone. From: Lineberger, Timothy L - OSEC Sent: Thursday, May 11, 2017 6:48:38 AM To: RA Acosta Cc: Smith, Gavin J - OSEC; Rogers, Jillian B - OSEC; Palmer, Wayne D - OSEC; Hazelton, Jennifer - OSEC Subject: Morning Clips 5/11 Morning News Clips: 5/11/17 5/10 Insurance News Net DOL Chief Looks to Deep Freeze Fiduciary Rule Click Here 5/10 Forbes Despite Delay, Fiduciary Rule 'Already Causing Great Harm' Click Here DOL-17-0281-K-000134 AO 836892 OSEC 000134 5/10 Wall Street Journal Robots Aren't Destroying Enough Jobs Click Here 5/10 Bloomberg Merger ofEEOC, Contractor Watchdog 'Under Consideration' Click Here 5/10 Bloomberg Agency That Oversees Fiduciary Rule May Be Leaderless Until Fall Click Here 5/10 Bloomberg Fiduciary Rule Violates First Amendment, Law Firm Argues Click Here Article 1 DOL Chief Looks to Deeu Freeze Fiduciary Rule Insurance News Net Steve Morelli 5/10 Labor Secretary Alexander Acosta wants to freeze the fiduciary rule in a way that will "stick," according to an email a Senate aide sent to rule opponents on Tuesday. Acosta told Sen. Tim Scott, R-S.C.,that the rule is his No. 1 priority and that he recognized the urgency of the situation, according to an email from Scott's aide. Acosta has not spoken publicly about the rule since his confirmation hearing in March. The regulation had been delayed until June 9, at which point annuities sold with retirement money would fall under a fiduciary standard. Fixed indexed and variable annuities would be subject to the more rigorous Best Interest Contract Exemption and non-indexed annuities would come under the Prohibited Transaction Exemption (PTE) 84-24. Rule opponents argue that the rule would needlessly burden advisors, who would be less likely to work with consumers' retirement funds. Rule proponents say that is precisely the object Scott was one of 124 lawmakers who signed a letter sent last week demanding that Acosta and the Department of Labor reform the rule. The letter is one of a few ways opponents are going after the rule before its June 9 applicability date. The House of Representatives is expected to pass a bill that would undo many of the Dodd-Frank financial reforms. The legislation includes a provision that would postpone the DOL rule until the Securities and Exchange Commission acts on a uniform fiduciary standard. The entire legislation faces Ion£ odds of passing the Senate. Article 2 Des:gite Delay, Fiduciary Rule 'Already Causing Great Harm' Forbes DOL-17-0281-K-000135 AO 836892 OSEC 000135 Jessica Karmasek 5/10 The future of the U.S. Department of Labor's controversial fiduciary rule remains unclear, as opponents of the rule continue to push for an additional delay of the measure, arguing it is "already causing great harm." This month, Paul Schott Stevens, president and chief executive of the Investment Company Institute, reminded IC! members the rule takes effect in June and warned them prospects for further delay are "uncertain." "ICI and its members devote enormous energy to meeting regulatory deadlines like this . They will be as ready as humanly possible on June 9," Stevens said during ICl's general membership meeting held in Washington, DC, May 5. "That said -- we are deeply disappointed that the rule's implementation was delayed by only 60 days -- because the rule is already causing great harm." Stevens said ICI members -- i.e. investment companies -- have reported that hundreds of thousands of small retirement accounts have been "orphaned" since the DOL finalized the rule last year . "Faced with the sizable ifuncertain legal and regulatory risks of assuming DOL fiduciary status vis-a-vis these fund shareholders, brokers are simply resigning from small accounts en masse," he said, noting that ICI predicted the rule would have "exactly" this consequence. "DOLbrushed that concern aside, with seeming indifference to the implications for the hundreds of thousands of small savers and investors affected." The trade association believes the rule must be rescinded or, at least, significantly revised. "After all, the DOL's rule runs afoul of every one of the criteria that President Trump set forward for its review. It will force many investors to pay more for advice -- or to go without advice altogether . It is already disrupting the retirement services industry. And it will create more, and more costly, litigation," Stevens said. The DOL released its final rule in April 2016 . The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the "best interest" of the savers and disclose conflicts of interest. DOL-17-0281-K-000136 AO 836892 OSEC 000136 Last month, the department released a measure officially delaying the implementation of the rule and its related exemptions by 60 days . The applicability date is now June 9. Written disclosure requirements and the full best-interest contract, or BIC, exemption are still scheduled for Jan. 1, 2018, implementation, according to the DOL. "Based on its review and evaluation of the public comments, the Department has concluded that some delay in full implementation of the Fiduciary Rule and PTEs (Prohibited Transaction Exemptions) is necessary to conduct a careful and thoughtful process pursuant to the Presidential Memorandum, and that any such review is likely to take more time to complete than a 60-day extension would afford, as many commenters suggested," the final delay rule states . "At the same time, however, the Department has concluded that it would be inappropriate to broadly delay application of the fiduciary definition and Impartial Conduct Standards for an extended period in disregard of its previous findings of ongoing injury to retirement investors ." The fiduciary rule and its exemptions followed an "extensive" public rulemaking process, the DOL noted, in which the department evaluated a "large body of academic and empirical work on conflicts of interest," and determined that "conflicted advice" was causing harm to retirement investors. A DOL spokesman told Legal Newsline the original rulemaking process, in particular, required the consideration of "thousands" of comments, four days of public hearings, a detailed economic analysis, and "numerous" meetings and conversations with affected stakeholders. The DOL's proposed delay was published in the March 2 edition of the Federal Register . The department said at that time it would accept public comments on the proposed extension for 15 days following its publication. Those comments were due March 17. "The Department is particularly interested in additional data that shows how firms are responding to the rule and exemptions and the overall impact on the market for investment advice," a DOL spokesman told Legal Newsline . Meanwhile, comments on issues raised in Trump's Feb. 3 memorandum would be accepted for 45 days. DOL-17-0281-K-000137 AO 836892 OSEC 000137 the ability of Americans to gain access to retirement information and financial advice . The public comment period on the substance of the rule and Trump's February directive ended April 17, with some groups calling for the rule to be withdrawn altogether and others asking for further delay of the June 9 applicability date to allow for a "proper review" of the rule. The DOL said last month that from now until Jan. 1, 2018, when all of the exemptions' conditions are scheduled to become fully applicable, it intends to complete its review under Trump's memorandum and decide whether to make or propose further changes to the fiduciary rule or associated exemptions. "In the Department's judgment, Plan and IRA investors, firms, and advisers all will benefit from the balanced approach set forth above," the final delay rule states . "Firms and advisers will be given additional time for an orderly transition and will not be required to immediately provide the notices, disclosures, and written commitments of fiduciary compliance that would otherwise be immediately required under the BIC Exemption and Principal Transactions Exemption. "Also, more controversial provisions -- such as requirements to execute enforceable written contracts under the Best Interest Contract and Principal Transactions Exemption, and changes to PTE 84 -24 (other than the addition of the Impartial Conduct Standards) -- are not applicable until January 1, 2018, while the Department is honoring the President's directive to take a hard look at any potential undue burdens and decides whether to make significant revisions." Stevens said ICI members strongly support a requirement that all financial advisers act in the best interests of their clients, whether in retirement or retail accounts. However, the trade association is calling upon the U.S.Securities and Exchange Commission or Congress to craft such a rule. "Only two bodies can lead the way on a unified best interest standard -- the SECand Congress," Stevens said . "We hope the SECwill take the lead -- but if it doesn't, Congress should stand ready ." The Financial Services Roundtable, which filed public comments in support of the DOL's delay proposal and thinks a longer delay would be beneficial, also believes the SEC should take the lead. "A 'best interest standard' should be properly crafted by the appropriate regulator in a way that reduces red tape but maintains important consumer protections," said FSR, considered the leading advocacy organization for the DOL-17-0281-K-000138 AO 836892 OSEC 000138 nation's financial services industry. "FSR believes the Securities and Exchange Commission is the appropriate regulator to adopt and implement a bestinterest standard for all brokerage accounts (including IRAs) held by retail customers, and the DOL should fully rescind its rule on this matter." SECActing Chairman Michael Piwowar has been an outspoken critic of the DOL rule, most recently calling it "unworkable." Piwowar, who was designated acting chairman by Trump in January, told a conference of mutual fund directors last month that it is time for the SECto "reassert its role" in developing investment advice standards. He contends the fiduciary rule has nothing to do with protecting investors, but aims to help plaintiffs lawyers bring cases. "It has achieved that objective," said Piwowar, who headed the agency since former Chairwoman Mary Jo White stepped down in January and while Trump's nominee for chairman, securities lawyer Jay Clayton, awaited a Senate confirmation vote. Clayton, a former partner at Sullivan & Cromwell LLP, was confirmed by the U.S. Senate in a 61-3 7 vote May 2. The Financial Services Institute, which advocates on behalfof independent financial advisors and independent financial services firms, wasted no time in asking Clayton to pursue a uniform fiduciary standard. "We have always believed the top priority of the SEC should be protecting investors," David Bellaire, EVP and general counsel for FSI, said in a statement released shortly after Clayton's confirmation. "Adopting a true, uniform fiduciary duty that protects investors and their access to affordable, objective financial advice must finally be given the serious attention it deserves." Not Responsive DOL-17-0281-K-000139 AO 836892 OSEC 000139 Not Responsive DOL-17-0281-K-000140 AO 836892 OSEC 000140 Not Responsive DOL-17-0281-K-000141 AO 836892 OSEC 000141 Not Responsive DOL-17-0281-K-000142 AO 836892 OSEC 000142 Not Responsive DOL-17-0281-K-000143 AO 836892 OSEC 000143 Not Responsive DOL-17-0281-K-000144 AO 836892 OSEC 000144 Not Responsive DOL-17-0281-K-000145 AO 836892 OSEC 000145 1·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 i I i i Not Responsive j ___ ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· I i ___j Article 6 Fiduciary Rule Violates First Amendment. Law Firm Argues Bloomberg Jacklyn Wille 5/10 The Department of Labor's fiduciary rule violates the First Amendment by restricting the truthful, commercial speech of financial advisers, the Washington Legal Foundation told a federal appeals court (Chamber of Commerce v. U.S. Dep't of Labor, 5th Cir., No. 17-10238, amicus brief filed 5/9 /17). The nonprofit law firm is urging the U.S. Court of Appeals for the Fifth Circuit to revive a First Amendment challenge to the DOL's fiduciary rule, an Obama-era regulation aimed at reducing the allegedly conflicted investment advice given to retirement savers. In February, a federal judge dismissed the First Amendment claims brought by the Chamber of Commerce and others, explaining that the groups waived this claim by failing to raise it during the DOL's rulemaking process. The fiduciary rule was scheduled to become applicable on April 10, but the DOL recently pushed that date back to June 9 in response to a memorandum from President Donald Trump ordering a re-evaluation of the rule. Multiple industry groups and companies have filed lawsuits challenging the fiduciary rule from a variety of angles. Every federal judge who has ruled on these cases upheld the rule in its entirety, handing losses to the Chamber and the American Council of Life Insurers, Market Synergy Group and the National Association for Fixed Annuities. In its friend-of-the-court brief, Washington Legal Foundation said that the federal judge who heard the Chamber's found lawsuit misapplied the law with respect to waiver of claims. The judge's "unduly harsh approach"-which the First Amendment claim waived for litigation purposes because it wasn't raised during the regulatory processcontravened U.S. Supreme Court precedent and "considerations of basic fairness," the firm said . Moreover, the fiduciary rule should be subject to heightened judicial scrutiny because it discriminates against speech based on the content and identity of the speaker, the firm said. The May 9 brief was submitted by Cory L. Andrews and Mark S. Chenoweth of the Washington Legal Foundation. Thrivent Financial for Lutherans, a fraternal benefit society that is mounting its own challenge to the fiduciary rule, also filed a brief on May 9. The brief takes aim at how the fiduciary rule makes it difficult for financial institutions to use class action waivers, which Thrivent says violates the Federal Arbitration Act. DOL-17-0281-K-000146 AO 836892 OSEC 000146 Message From: 1---L L--~~-,tbw:-? __________________________________________________________ wrote: FYI (2nd story like this) Nasdaq: New DOL Chief Confirms Plan to Kill Fiduciary Rule http://www. nasdaq. com/a rticle/new-dol-ch ief-con fi rms-plan-to-kil 1-fiduciary-ru le-cm 78 7631 Opponents of the fiduciary rule should take heart today. One of the many big questions marks in what has become an almost macabre debacle to unwind the fiduciary rule is where new DOL chief Alex Acosta stood on the rule . Some thought he might not be ardently against it given his background in punishing financial wrongdoing. However, a new email to fiduciary rule opponents released by a Senate aide says that Acosta wants to unwind the rule in a way that "sticks". Internal work within the DOL to undo the rule is one of the strategies being deployed to terminate it, though the passage of the new Choice Act-which has a provision killing the rule-would be the fastest. It has long odds of passing the Senate, however. FINSUM : At least it is clear where Acosta stands now, and it certainly cannot hurt the battle against the fiduciary rule that the head of the agency which made it wants it gone. From: Lineberger, Timothy L - OSEC Sent: Thursday, May 11, 2017 6:48:38 AM To: RA Acosta Cc: Smith, Gavin J - OSEC; Rogers, Jillian B - OSEC; Palmer, Wayne D - OSEC; Hazelton, Jennifer - OSEC Subject: Morning Clips 5/11 Morning News Clips: 5/11/17 DOL-17-0281-K-000147 AO 836892 OSEC 00014 7 5/10 Insurance News Net DOL Chief Looks to Deep Freeze Fiduciary Rule Click Here 5/10 Forbes Despite Delay, Fiduciary Rule 'Already Causing Great Harm' Click Here Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- 5/10 Bloomberg ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. Fiduciary Rule Violates First Amendment, Law Firm Argues Click Here Article 1 DOL Chief Looks to Deep Freeze Fiduciary Rule Insurance News Net Steve Morelli 5/10 Labor Secretary Alexander Acosta wants to freeze the fiduciary rule in a way that will "stick," according to an email a Senate aide sent to rule opponents on Tuesday. Acosta told Sen. Tim Scott, R-5.C., that the rule is his No. 1 priority and that he recognized the urgency of the situation, according to an email from Scott's aide. Acosta has not spoken publicly about the rule since his confirmation hearing in March. The regulation had been delayed until June 9, at which point annuities sold with retirement money would fall under a fiduciary standard. Fixed indexed and variable annuities would be subject to the more rigorous Best Interest Contract Exemption and non-indexed annuities would come under the Prohibited Transaction Exemption (PTE) 84-24. Rule opponents argue that the rule would needlessly burden advisors, who would be less likely to work with consumers' retirement funds. Rule proponents say that is precisely the object. Scott was one of 124 lawmakers who signed a letter sent last week demanding that Acosta and the Department of Labor reform the rule. The letter is one of a few ways opponents are going after the rule before its June 9 applicability date. The House of Representatives is expected to pass a bill that would undo many of the Dodd-Frank financial reforms. The legislation DOL-17-0281-K-000148 AO 836892 OSEC 000148 includes a provision that would postpone the DOL rule until the Securities and Exchange Commission acts on a uniform fiduciary standard. The entire legislation faces long odds of passing the Senate. Article 2 Despite Delay, Fiduciary Rule 'Already Causing Great Harm' Forbes Jessica Karmasek 5/10 The future of the U.S. Department of Labor's controversial fiduciary rule remains unclear, as opponents of the rule continue to push for an additional delay of the measure, arguing it is "already causing great harm." This month, Paul Schott Stevens, president and chief executive of the Investment Company Institute, reminded ICI members the rule takes effect in June and warned them prospects for further delay are "uncertain." "ICI and its members devote enormous energy to meeting regulatory deadlines like this. They will be as ready as humanly possible on June 9," Stevens said during ICl's general membership meeting held in Washington, DC, May 5. "That said -- we are deeply disappointed that the rule's implementation is already causing great harm." was delayed by only 60 days -- because the rule Stevens said ICI members -- i.e. investment companies -- have reported that hundreds of thousands of small retirement accounts have been "orphaned" since the DOL finalized the rule last year. "Faced with the sizable if uncertain legal and regulatory risks of assuming DOL fiduciary status vis-a-vis these fund shareholders, brokers are simply resigning from small accounts en masse," he said, noting that ICI predicted the rule would have "exactly" this consequence. "DOL brushed that concern aside, with seeming indifference to the implications for the hundreds of thousands of small savers and investors affected." The trade association believes the rule must be rescinded or, at least, significantly revised. "After all, the DOL's rule runs afoul of every one of the criteria that President Trump set forward for its review. It will force many investors to pay more for advice -- or to go without advice altogether. It is already disrupting the retirement services industry. And it will create more, and more costly, litigation," Stevens said. DOL-17-0281-K-000149 AO 836892 OSEC 000149 The DOL released its final rule in April 2016. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the "best interest" of the savers and disclose conflicts of interest. Last month, the department released a measure officially delaying the implementation exemptions by 60 days. The applicability date is now June 9. of the rule and its related Written disclosure requirements and the full best-interest contract, or BIC, exemption are still scheduled for Jan. 1, 2018, implementation, according to the DOL. "Based on its review and evaluation of the public comments, the Department has concluded that some delay in full implementation of the Fiduciary Rule and PTEs(Prohibited Transaction Exemptions) is necessary to conduct a careful and thoughtful process pursuant to the Presidential Memorandum, and that any such review is likely to take more time to complete than a 60-day extension would afford, as many commenters suggested," the final delay rule states. "At the same time, however, the Department has concluded that it would be inappropriate to broadly delay application of the fiduciary definition and Impartial Conduct Standards for an extended period in disregard of its previous findings of ongoing injury to retirement investors." The fiduciary rule and its exemptions followed an "extensive" public rulemaking process, the DOL noted, in which the department evaluated a "large body of academic and empirical work on conflicts of interest," and determined that "conflicted advice" was causing harm to retirement investors. A DOL spokesman told Legal Newsline the original rulemaking process, in particular, required the consideration of "thousands" of comments, four days of public hearings, a detailed economic analysis, and "numerous" meetings and conversations with affected stakeholders. The DOL's proposed delay was published in the March 2 edition of the Federal Register. The department said at that time it would accept public comments on the proposed extension for 15 days following its publication . Those comments were due March 17. "The Department is particularly interested in additional data that shows how firms are responding to the rule and exemptions and the overall impact on the market for investment advice," a DOL spokesman told Legal Newsline. DOL-17-0281-K-000150 AO 836892 OSEC 000150 Meanwhile, comments on issues raised in Trump's Feb. 3 memorandum would be accepted for 45 days. In his order, Trump directed the department to review the rule and determine whether it may "adversely affect" the ability of Americans to gain access to retirement information and financial advice. The public comment period on the substance of the rule and Trump's February directive ended April 17, with some groups calling for the rule to be withdrawn altogether and others asking for further delay of the June 9 applicability date to allow for a "proper review" of the rule. The DOL said last month that from now until Jan. 1, 2018, when all of the exemptions' conditions are scheduled to become fully applicable, it intends to complete its review under Trump's memorandum and decide whether to make or propose further changes to the fiduciary rule or associated exemptions. "In the Department's judgment, Plan and IRA investors, firms, and advisers all will benefit from the balanced approach set forth above," the final delay rule states. "Firms and advisers will be given additional time for an orderly transition and will not be required to immediately provide the notices, disclosures, and written commitments of fiduciary compliance that would otherwise be immediately required under the BIC Exemption and Principal Transactions Exemption. "Also, more controversial provisions -- such as requirements to execute enforceable written contracts under the Best Interest Contract and Principal Transactions Exemption, and changes to PTE84-24 (other than the addition of the Impartial Conduct Standards) -- are not applicable until January 1, 2018, while the Department is honoring the President's directive to take a hard look at any potential undue burdens and decides whether to make significant revisions." Stevens said ICI members strongly support a requirement that all financial advisers act in the best interests of their clients, whether in retirement or retail accounts. However, the trade association is calling upon the U.S. Securities and Exchange Commission or Congress to craft such a rule. "Only two bodies can lead the way on a unified best interest standard -- the SECand Congress," Stevens said. "We hope the SECwill take the lead -- but if it doesn't, Congress should stand ready." DOL-17-0281-K-000151 AO 836892 OSEC 000151 The Financial Services Roundtable, which filed public comments in support of the DOL's delay proposal and thinks a longer delay would be beneficial, also believes the SECshould take the lead. "A 'best interest standard' should be properly crafted by the appropriate regulator in a way that reduces red tape but maintains important consumer protections," said FSR,considered the leading advocacy organization for the nation's financial services industry. "FSR believes the Securities and Exchange Commission is the appropriate regulator to adopt and implement a bestinterest standard for all brokerage accounts (including IRAs) held by retail customers, and the DOL should fully rescind its rule on this matter." SECActing Chairman Michael Piwowar has been an outspoken critic of the DOL rule, most recently calling it "unworkable." Piwowar, who was designated acting chairman by Trump in January, told a conference of mutual fund directors last month that it is time for the SECto "reassert its role" in developing investment advice standards. He contends the fiduciary rule has nothing to do with protecting investors, but aims to help plaintiffs lawyers bring cases. "It has achieved that objective," said Piwowar, who headed the agency since former Chairwoman Mary Jo White stepped down in January and while Trump's nominee for chairman, securities lawyer Jay Clayton, awaited a Senate confirmation vote . Clayton, a former partner at Sullivan & Cromwell LLP,was confirmed by the U.S. Senate in a 61-37 vote May 2. The Financial Services Institute, which advocates on behalf of independent financial advisors and independent financial services firms, wasted no time in asking Clayton to pursue a uniform fiduciary standard. "We have always believed the top priority of the SECshould be protecting investors," David Bellaire, EVPand general counsel for FSI,said in a statement released shortly after Clayton's confirmation. DOL-17-0281-K-000152 AO 836892 OSEC 000152 "Adopting a true, uniform fiduciary duty that protects investors and their access to affordable, objective financial advice must finally be given the serious attention it deserves." Not Responsive Not Responsive DOL-17-0281-K-000153 AO 836892 OSEC 000153 Not Responsive DOL-17-0281-K-000154 AO 836892 OSEC 000154 Not Responsive DOL-17-0281-K-000155 AO 836892 OSEC 000155 Not Responsive DOL-17-0281-K-000156 AO 836892 OSEC 000156 Not Responsive DOL-17-0281-K-000157 AO 836892 OSEC 000157 Not Responsive DOL-17-0281-K-000158 AO 836892 OSEC 000158 Not Responsive Article 6 Fiduciary Rule Vio lates First Amendment, Law Firm Argues Bloomberg Jacklyn Wille 5/10 The Department of Labor's fiduciary rule violates the First Amendment by restricting the truthful, commercial speech of financial advisers, the Washington Legal Foundation told a federal appeals court (Chamber of Commerce v. U.S. Dep't of Labor, 5th Cir., No. 17-10238, amicus brief filed 5/9/17). The nonprofit law firm is urging the U.S. Court of Appeals for the Fifth Circuit to revive a First Amendment challenge to the DOL's fiduciary rule, an Obama-era regulation aimed at reducing the allegedly conflicted investment advice given to retirement savers. In February, a federal judge dismissed the First Amendment claims brought by the Chamber of Commerce and others, explaining that the groups waived this claim by failing to raise it during the DOL's rulemaking process. The fiduciary rule was scheduled to become applicable on April 10, but the DOL recently pushed that date back to June 9 in response to a memorandum from President Donald Trump ordering a re-evaluation of the rule. Multiple industry groups and companies have filed lawsuits challenging the fiduciary rule from a variety of angles. Every federal judge who has ruled on these cases upheld the rule in its entirety, handing losses to the Chamber and the American Council of Life Insurers, Market Synergy Group and the National Association for Fixed Annuities. In its friend-of-the-court brief, Washington Legal Foundation said that the federal judge who heard the Chamber's lawsuit misapplied the law with respect to waiver of claims. The judge's "unduly harsh approach"-which found the First Amendment claim waived for litigation purposes because it wasn't raised during the regulatory process-contravened U.S. Supreme Court precedent and "considerations of basic fairness," the firm said. DOL-17-0281-K-000159 AO 836892 OSEC 000159 Moreover, the fiduciary rule should be subject to heightened judicial scrutiny because it discriminates against speech based on the content and identity of the speaker, the firm said. The May 9 brief was submitted by Cory L. Andrews and Mark S. Chenoweth of the Washington legal Foundation. Thrivent Financial for Lutherans , a fraternal benefit society that is mounting its own challenge to the fiduciary rule, also filed a brief on May 9. The brief takes aim at how the fiduciary rule makes it difficult for financial institutions to use class action waivers, which Thrivent says violates the Federal Arbitration Act. DOL-17-0281-K-000160 AO 836892 OSEC 000160 Message From: Sent: t:~J}{Jj 1{i'{i~i~~:~===J;;L _____________________ J~)_(~J_ __________________ __j To: i CC: RA Acosta :·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· (b) (6)-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· i (b)(G) i :·-·smfrh~--G-avf nT-·c:fsf c·-n-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·(b-)(6f-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-r·-·-·-·-·-·! {b){6) IRogers,JillianB-OSEC LI ( b) (6) [aimer, Wayne D - OSEC L_____________________ (b_)_(6)_____________________ ____ ra,elton, Jennilee - Subject: Re: Morning Clips 5/11 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-, Not Responsive On: 11 May 2017 08: 13, "Lineberger, Timothy L - OSEC" i-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-{b.){6Y·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-i wrote: L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-J FYI (2nd story like this) Nasdaq: New DOL Chief Confirms Plan to Kill Fiduciary Rule http://www. nasdag. com/a rticle/new-dol-ch ief-confi rms-plan-to-kil 1-fiduciary-ru le-cm 78 7631 Opponents of the fiduciary rule should take heart today. One of the many big questions marks in what has become an almost macabre debacle to unwind the fiduciary rule is where new DOL chief Alex Acosta stood on the rule . Some thought he might not be ardently against it given his background in punishing financial wrongdoing. However, a new email to fiduciary rule opponents released by a Senate aide says that Acosta wants to unwind the rule in a way that "sticks" . Internal work within the DOL to undo the rule is one of the strategies being deployed to terminate it, though the passage of the new Choice Act-which has a provision killing the rule-would be the fastest. It has long odds of passing the Senate, however. FINSUM : At least it is clear where Acosta stands now, and it certainly cannot hurt the battle against the fiduciary rule that the head of the agency which made it wants it gone. From: Lineberger, Timothy L - OSEC Sent: Thursday, May 11, 2017 6:48:38 AM To: RA Acosta Cc: Smith, Gavin J - OSEC; Rogers, Jillian B - OSEC; Palmer, Wayne D - OSEC; Hazelton, Jennifer - OSEC Subject: Morning Clips 5/11 DOL-17-0281-K-000161 AO 836892 OSEC 000161 Morning News Clips: 5/11/17 5/10 Insurance News Net DOL Chief Looks to Deep Freeze Fiduciary Rule Click Here 5/10 Forbes Despite Delay, Fiduciary Rule 'Already Causing Great Harm' Click Here 5/10 Wall Street Journal Robots Aren't Destroying Enough Jobs Click Here Not Responsive · ·---------------------------------·-·r·---------------------------------------------------------·-r-'"'·· 5 =,,.-----------------------------------------------------------------------------------------------T---------- Article 1 DOL Chief Looks to Dee~ Freeze Fiduciary Rule Insurance News Net Steve Morelli 5/10 Labor Secretary Alexander Acosta wants to freeze the fiduciary rule in a way that will "stick," according to an email a Senate aide sent to rule opponents on Tuesday. Acosta told Sen. Tim Scott, R-S.C.,that the rule is his No. 1 priority and that he recognized the urgency of the situation, according to an email from Scott's aide. Acosta has not spoken publicly about the rule since his confirmation hearing in March. The regulation had been delayed until June 9, at which point annuities sold with retirement money would fall under a fiduciary standard. Fixed indexed and variable annuities would be subject to the more rigorous Best Interest Contract Exemption and non-indexed annuities would come under the Prohibited Transaction Exemption (PTE) 84-24. Rule opponents argue that the rule would needlessly burden advisors, who would be less likely to work with consumers' retirement funds. Rule proponents say that is precisely the object. Scott was one of 124 lawmakers who signed a letter sent last week demanding that Acosta and the Department of Labor DOL-17-0281-K-000162 AO 836892 OSEC 000162 reform the rule. The letter is one of a few ways opponents are going after the rule before its June 9 applicability date. The House of Representatives is expected to pass a bill that would undo many of the Dodd-Frank financial reforms. The legislation includes a provision that would postpone the DOL rule until the Securities and Exchange Commission acts on a uniform fiduciary standard. The entire legislation faces long odds of passing the Senate. Article 2 Despite Delay, Fiduciary Rule 'Already Causing Great Harm' Forbes Jessica Karmasek 5/10 The future of the U.S. Department of Labor's controversial fiduciary rule remains unclear, as opponents of the rule continue to push for an additional delay of the measure, arguing it is "already causing great harm." This month, Paul Schott Stevens, president and chief executive of the Investment Company Institute, reminded ICI members the rule takes effect in June and warned them prospects for further delay are "uncertain." "ICI and its members devote enormous energy to meeting regulatory deadlines like this. They will be as ready as humanly possible on June 9," Stevens said during !Cl's general membership meeting held in Washington, DC, May 5. "That said -- we are deeply disappointed that the rule's implementation is already causing great harm." was delayed by only 60 days -- because the rule Stevens said ICI members -- i.e. investment companies -- have reported that hundreds of thousands of small retirement accounts have been "orphaned" since the DOL finalized the rule last year. "Faced with the sizable if uncertain legal and regulatory risks of assuming DOL fiduciary status vis-a-vis these fund shareholders, brokers are simply resigning from small accounts en masse," he said, noting that ICI predicted the rule would have "exactly" this consequence. "DOL brushed that concern aside, with seeming indifference to the implications for the hundreds of thousands of small savers and investors affected." The trade association believes the rule must be rescinded or, at least, significantly revised. DOL-17-0281-K-000163 AO 836892 OSEC 000163 "After all, the DOL's rule runs afoul of every one of the criteria that President Trump set forward for its review. It will force many investors to pay more for advice -- or to go without advice altogether. It is already disrupting the retirement services industry. And it will create more, and more costly, litigation," Stevens said. The DOL released its final rule in April 2016. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the "best interest" of the savers and disclose conflicts of interest. Last month, the department released a measure officially delaying the implementation exemptions by 60 days. The applicability date is now June 9. of the rule and its related Written disclosure requirements and the full best-interest contract, or BIC, exemption are still scheduled for Jan. 1, 2018, implementation, according to the DOL. "Based on its review and evaluation of the public comments, the Department has concluded that some delay in full implementation of the Fiduciary Rule and PTEs(Prohibited Transaction Exemptions) is necessary to conduct a careful and thoughtful process pursuant to the Presidential Memorandum, and that any such review is likely to take more time to complete than a 60-day extension would afford, as many commenters suggested," the final delay rule states. "At the same time, however, the Department has concluded that it would be inappropriate to broadly delay application of the fiduciary definition and Impartial Conduct Standards for an extended period in disregard of its previous findings of ongoing injury to retirement investors." The fiduciary rule and its exemptions followed an "extensive" public rulemaking process, the DOL noted, in which the department evaluated a "large body of academic and empirical work on conflicts of interest," and determined that "conflicted advice" was causing harm to retirement investors. A DOL spokesman told Legal Newsline the original rulemaking process, in particular, required the consideration of "thousands" of comments, four days of public hearings, a detailed economic analysis, and "numerous" meetings and conversations with affected stakeholders. The DOL's proposed delay was published in the March 2 edition of the Federal Register. The department said at that time it would accept public comments on the proposed extension for 15 days following its publication. Those comments were due March 17. DOL-17-0281-K-000164 AO 836892 OSEC 000164 "The Department is particularly interested in additional data that shows how firms are responding to the rule and exemptions and the overall impact on the market for investment advice," a DOL spokesman told Legal Newsline. Meanwhile, comments on issues raised in Trump's Feb. 3 memorandum would be accepted for 45 days. In his order, Trump directed the department to review the rule and determine whether it may "adversely affect" the ability of Americans to gain access to retirement information and financial advice. The public comment period on the substance of the rule and Trump's February directive ended April 17, with some groups calling for the rule to be withdrawn altogether and others asking for further delay of the June 9 applicability date to allow for a "proper review" of the rule. The DOL said last month that from now until Jan. 1, 2018, when all of the exemptions' conditions are scheduled to become fully applicable, it intends to complete its review under Trump's memorandum and decide whether to make or propose further changes to the fiduciary rule or associated exemptions. "In the Department's judgment, Plan and IRA investors, firms, and advisers all will benefit from the balanced approach set forth above," the final delay rule states. "Firms and advisers will be given additional time for an orderly transition and will not be required to immediately provide the notices, disclosures, and written commitments of fiduciary compliance that would otherwise be immediately required under the BIC Exemption and Principal Transactions Exemption. "Also, more controversial provisions -- such as requirements to execute enforceable written contracts under the Best Interest Contract and Principal Transactions Exemption, and changes to PTE84-24 (other than the addition of the Impartial Conduct Standards) -- are not applicable until January 1, 2018, while the Department is honoring the President's directive to take a hard look at any potential undue burdens and decides whether to make significant revisions." Stevens said ICI members strongly support a requirement that all financial advisers act in the best interests of their clients, whether in retirement or retail accounts. However, the trade association is calling upon the U.S. Securities and Exchange Commission or Congress to craft such a rule. DOL-17-0281-K-000165 AO 836892 OSEC 000165 "Only two bodies can lead the way on a unified best interest standard -- the SECand Congress," Stevens said. "We hope the SECwill take the lead -- but if it doesn't, Congress should stand ready." The Financial Services Roundtable, which filed public comments in support of the DOL's delay proposal and thinks a longer delay would be beneficial, also believes the SECshould take the lead. "A 'best interest standard' should be properly crafted by the appropriate regulator in a way that reduces red tape but maintains important consumer protections," said FSR,considered the leading advocacy organization for the nation's financial services industry. "FSR believes the Securities and Exchange Commission is the appropriate regulator to adopt and implement a bestinterest standard for all brokerage accounts (including IRAs) held by retail customers, and the DOL should fully rescind its rule on this matter." SECActing Chairman Michael Piwowar has been an outspoken critic of the DOL rule, most recently calling it "unworkable." Piwowar, who was designated acting chairman by Trump in January, told a conference of mutual fund directors last month that it is time for the SECto "reassert its role" in developing investment advice standards. He contends the fiduciary rule has nothing to do with protecting investors, but aims to help plaintiffs lawyers bring cases. "It has achieved that objective," said Piwowar, who headed the agency since former Chairwoman Mary Jo White stepped down in January and while Trump's nominee for chairman, securities lawyer Jay Clayton, awaited a Senate confirmation vote. Clayton, a former partner at Sullivan & Cromwell LLP,was confirmed by the U.S. Senate in a 61-37 vote May 2. The Financial Services Institute, which advocates on behalf of independent financial advisors and independent financial services firms, wasted no time in asking Clayton to pursue a uniform fiduciary standard. DOL-17-0281-K-000166 AO 836892 OSEC 000166 "We have always believed the top priority of the SECshould be protecting investors," David Bellaire , EVPand general counsel for FSI,said in a statement released shortly after Clayton's confirmation. "Adopting a true, uniform fiduciary duty that protects investors and their access to affordable, objective financial advice must finally be given the serious attention it deserves." r-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·i ; ; ; ; ; ; ; ; ; ; ; ; ; ; ! Not Responsive ' --·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-ir ii ! ; ; ; ; ; ; ! Not Responsive '; L·-·-·-·-·-·-•-•-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-•-•-·-·-·-·-·-·-·-·-•-•-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-•-•-•-•-·-·-·-•-·-•-•-•-·-·-·-·-·.1 DOL-17-0281-K-000167 AO_ 836892_ OSEC_ 000167 Not Responsive DOL-17-0281-K-000168 AO 836892 OSEC 000168 Not Responsive DOL-17-0281-K-000169 AO 836892 OSEC 000169 Not Responsive DOL-17-0281-K-000170 AO 836892 OSEC 000170 Not Responsive DOL-17-0281-K-000171 AO 836892 OSEC 000171 Not Responsive DOL-17-0281-K-000172 AO 836892 OSEC 000172 through the Senate with fewer than 60 votes, Harkins said. Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-- Article 6 Fiduciar}'. Rule Violates First Amendment, Law Firm Argues Bloomberg Jacklyn Wille 5/10 The Department of labor's fiduciary rule violates the First Amendment by restricting the truthful, commercial speech of financial advisers, the Washington Legal Foundation told a federal appeals court (Chamber of Commerce v. U.S. Dep't of Labor, 5th Cir., No. 17-10238, amicus brief filed 5/9/17). The nonprofit law firm is urging the U.S. Court of Appeals for the Fifth Circuit to revive a First Amendment challenge to the DOL's fiduciary rule, an Obama-era regulation aimed at reducing the allegedly conflicted investment advice given to retirement savers. In February, a federal judge dismissed the First Amendment claims brought by the Chamber of Commerce and others, explaining that the groups waived this claim by failing to raise it during the DOL's rulemaking process. The fiduciary rule was scheduled to become applicable on April 10, but the DOL recently pushed that date back to June 9 in response to a memorandum from President Donald Trump ordering a re-evaluation of the rule. Multiple industry groups and companies have filed lawsuits challenging the fiduciary rule from a variety of angles. Every federal judge who has ruled on these cases upheld the rule in its entirety, handing losses to the Chamber and the American Council of Life Insurers, Market Synergy Group and the National Association for Fixed Annuities. In its friend-of-the-court brief, Washington Legal Foundation said that the federal judge who heard the Chamber's lawsuit misapplied the law with respect to waiver of claims. The judge's "unduly harsh approach"-which found the First DOL-17-0281-K-000173 AO 836892 OSEC 000173 Amendment claim waived for litigation purposes because it wasn't raised during the regulatory process-contravened U.S. Supreme Court precedent and "considerations of basic fairness," the firm said. Moreover, the fiduciary rule should be subject to heightened judicial scrutiny because it discriminates against speech based on the content and identity of the speaker, the firm said. The May 9 brief was submitted by Cory L. Andrews and Mark S. Chenoweth of the Washington legal Foundation. Thrivent Financial for Lutherans, a fraternal benefit society that is mounting its own challenge to the fiduciary rule, also filed a brief on May 9. The brief takes aim at how the fiduciary rule makes it difficult for financial institutions to use class action waivers, which Thrivent says violates the Federal Arbitration Act. DOL-17-0281-K-000174 AO 836892 OSEC 00017 4 Message From: Sent: To: CC: Subject: Evening News Clips: 5/11/17 r ~ i i Not Responsive I i,__ -·-·-·-·-·-·-·-·-·-·-·- 5/11 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ASPPA Net I ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· House Republicans Press for Documents on Fiduciary Rule Delay __i Click Here Not Responsive ' 5/11 Investment News NAPA says DOL secretary Alexander Acosta wants to freeze fiduciary rule Click Here 5/11 Forbes Department Of Labor's Fiduciary Rule Is Vulnerable On First Amendment Grounds Click Here 5/11 Think Advisor Killing Fiduciary Rule Seen as New DOL Chief's Top Priority Click Here Not Responsive DOL-17-0281-K-000175 AO 836892 OSEC 000175 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 2 House ReQublicans Press for Documents o n Fiduciary Rule Delay ASPPA Net Staff report 5/11 Concerned about reports that the Labor Department's delay of the fiduciary rule was crafted to undermine President Trump's directive to reexamine the rule's impact, House Republicans are looking for some answers - and some face time. In an April 28 letter to Secretary of Labor Secretary Alexander Acosta, House Financial Services Chairman Jeb Hensarling (R-TX), Rep. Bill Huizenga (R-MI) and Rep. Ann Wagner (R-MO) note that, "There have been reports that [DOL] employees adopted this approach in a calculated effort to undermine the president's directive." The letter includes a footnote referencing "Labor Department Mutiny," (subscription required) an April 13 Wall Street Journal article suggesting that some DOL officials were undermining the president's directive . For example, the article characterizes the response of the DOL in announcing the delay in the rule's applicability date - which said it "would be inappropriate to broadly delay application of the fiduciary definition and Impartial Conduct Standards" - as: "We don't care what an elected President says." Documents Requested The letter asks for all communications relating to the EBSA'simplementation of President Trump's Memorandum of Feb. 3, 2017 between DOL staff and (1) employees at other executive branch agencies, and (2) any non-government entity. It also asks for all communications between staff and any non-government entity related to: • • • the proposed rule published in the Federal Register on Ma rch 2; the final rule published in the Federal Register on April 7; and the cost/benefit analysis of the final rule published in the Federal Register on April 7 . DOL-17-0281-K-000176 AO 836892 OSEC 000176 The letter also asks that EBSADeputy Assistant Secretary Tim Hauser be "available to brief committee staff" on May 10. And finally, "due to the uncertainty facing stakeholders and the millions of customers they serve in the retirement advice industry with respect to provisions of the fiduciary rule coming into effect on June 9 while a comprehensive review of the rule is still ongoing," t he letter urges Acosta to "immediately move to extend the appli cability date of t he fiduciary rule in its entirety." }L.___ ,__ ____________________________________________ __. Not Responsive ~--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·! Not Responsive DOL-17-0281-K-000177 AO 836892 OSEC 000177 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 5 NAPA says DOL secretary Alexander Acosta wants to freeze fiduciary rule Investment News Mark Schoeff Jr. 5/11 A financial industry critic of the Labor Department's fiduciary rule is claiming the new Labor Secretary Alexander Acosta has made stopping the measure his top priority. In a May 10 blog post, the National Association of Plan Advisors said that Mr . Acosta discussed his stance during a recent meeting with Sen. Tim Scott, R-5.C. "Labor Secretary Alexander Acosta says the Department of Labor's fiduciary rule is his No. 1 priority, and that he is actively seeking a way to freeze the rule that will 'stick,"' the NAPA blog states. "Acosta also said he is in constant communication with the White House and recognized the urgency of the situation ." The NAPA based its report on "a communication from [Mr.] Scott's office." Michele Exner, Mr. Scott's press secretary, said that Mr. Scott and Mr. Acosta spoke over the phone recently. She did not characterize the conversation and said t hat she did not sit in on it . The senator 's office did not release information about the discussion or what Mr. Acosta said. "We didn't send anything out," Ms. Exner said. "I don't know where they would have gotten those not es." A Labor Department spokeswoman said that she would look into the exchange between Mr. Acosta and Mr. Scott but did not follow up with a comment. NAPA declined to comment beyond the blog post. Immediately after Mr. Acosta was confirmed by the Senate on April 27, opponents of the DOL rule urged him to extend the imp lementation delay beyond June 9. The agency pushed back implementation of the rule to that date from April 10 while it condu cts a reassessment at t he behest of President Donald J. Trump. That reveiew could lead to modification or repeal of the rule. DOL-17-0281-K-000178 AO 836892 OSEC 000178 Two key parts of the rule would become applicable on June 9, an expanded definition of who is a fiduciary to retirement accounts and impartial conduct standards they must follow. Opponents want the entire rule delayed during the review, which will last until the end of the year. Final implementation of the rule is scheduled for Jan. 1. A group called Americans to Protect Retirement Security has launched a print and digita l ad campaign telling DOL to "act now" to further delay the rule. Mr. Acosta must make a decision soon on whether to push back the June 9 implementation for a rulemaking process. date in order to leave time An industry lobbyist said on Thursday that Mr. Acosta could extend the delay without a notice and comment period while adhering to regulatory requirements. But he may be holding off out of fear of being sued by supporters of the rule. Meanwhile, Capitol Hill Republicans are pushing Mr. Acosta to act. "[W]e respectfully request that you carry out the president's directives without delay and finalize a new fiduciary rule review before any part of the rule becomes applicable," Mr. Scott and eight of his GOP colleagues wrote in an Apri l 28 letter to Mr. Acosta. The rule would require financial advisers to act in the best interests of their clients in retirement accounts. Opponents say it is too complex and costly. Supporters argue that the rule is required to protect workers and retirees from conflicted advice that results in the sales of inappropriate high-fee investments that erode savings. Article 6 Department Of Labor's Fiduciary Rule Is Vu lnerab le On First Amendment Grounds Forbes Cory L. Andrews 5/11 Promulgated in April 2016, the Department of Labor's (DOL) highly controversial Fiduciary Rule drastically expands the universe of retirement investment advisors and employees who are deemed to be 11 fiduciaries" under federal law. Abandoning 40 years of settled statutory interpretation of the Employee Retirement Income Security Act of 1974 (ERISA) and parallel provisions of the Internal Revenue Code (IRC), DOL now maintains that a fiduciary is anyone who provides 11 recommendations" that are individualized or directed to a specific recipient for consideration in making investment or management decisions with respect to securities or other property of an ERISAplan or an IRA. 11 11 The rule loosely defines recommendation" as a communication that, based on its content, context, and presentation, would reasonably be viewed as a suggestion that the advice recipient engage in or refrain from taking a particular course of action." In an earlier proposed rulemaking, DOL even conceded that this expanded definition of fiduciary encompasses communications that 11 Congress did not intend to cover as fiduciary 'investment advice' and that parties would not ordinarily view as communications characterized by a relationship of trust or impartiality." Nonetheless, the new rule sweeps broker-dealers, their registered representatives, insurance companies, brokers, and their commissionbased sales agents into the broad definition of 11fiduciary." While the DOL has postponed the Fiduciary Rule's implementation until at least June 9, affected stakeholders have asked the US Court of Appeals for the Fifth Circuit to overturn the Rule on a variety of grounds. Petitioners-including (among others) the American Council of Life Insurers (ACLI), the Indexed Annuity Leadership Council (IALC), and the US Chamber of Commerce-argue that the rule improperly asserts regulatory authority over products and activities that are outside DOL's jurisdiction, in violation of the statutory limits Congress imposed on the agency. They also argue, among other things, that the rule unlawfully abridges the right of brokers, agents, and other insurance salespeople to convey truthful, non-misleading commercial speech to investors. While the Fiduciary Rule is deeply flawed and should be overturned for many reasons, its First Amendment defects are DOL-17-0281-K-000179 AO 836892 OSEC 000179 especially vulnerable to attack. This is what Washington Legal Foundation argued in the amicus curiae brief it filed May 9 with the Fifth Circuit in the ongoing legal challenge. On its face, the Fiduciary Rule discriminates against speech based solely on its content and the identity of the speaker, triggering heightened First Amendment scrutiny. Reed v. Town of Gilbert, Ariz. holds that any effort to classify speech by reference to its content, or to burden speech that falls into a disfavored category, constitutes a content-based restriction subject to strict scrutiny. And Sorrell v. IMS Health Inc. makes clear that any effort to restrict speech based on the speaker's "economic motive" is a speaker-based restriction subject at the very least to "heightened scrutiny." Nonetheless, the Texas district court below held just the opposite, relying on the "professional speech doctrine" to effectively eliminate Appellants' First Amendment rights, based on nothing more than the regulated speakers' identities and the content of their speech. Not only has the US Supreme Court never recognized a separate First Amendment category for so-called professional speech, but it has consistently rejected any constitutional distinction between speech to the general public and speech to a particular person or group that somehow deprives the latter category of any meaningful First Amendment protection. Indeed, distinguishing between "professional" speech and ordinary speech is itself an impermissible contentbased distinction. Even on the rare occasion that lower federal courts have invoked the professional-speech doctrine, they have limited its application to state regulatory regimes tied to a generally applicable licensing scheme-a threshold requirement not met here. At bottom, the district court's decision below afforded unacceptably broad deference to DOL's decision to restrict truthful, non-misleading commercial speech. DOL seeks to justify its content-based and discriminatory burdens on the basis that those burdens are aimed solely at professional conduct, not speech. The district court agreed, explaining that Appellants and their members "may speak freely, so long as they recommend products that [in DOL's view] are in a consumer's best interest." But "[t]he First Amendment directs us to be especially skeptical of regulations that seek to keep people in the dark for what the government perceives to be their own good." 44 Liquormart, Inc. v. Rhode Island. Such speech restrictions are subject to heightened First Amendment review, even when the speech in question is commercial in nature. By exempting DOL's rule from any level of judicial scrutiny, the decision below-if allowed to stand-would effectively render the First Amendment a dead letter. Article 7 Killing Fiduciary Rule Seen as New DOL Chief's Top Priority Think Advisor Melanie Waddell 5/11 Labor Secretary R. Alexander Acosta has made halting the fiduciary rule's June 9 compliance date as a top priority, with published reports saying he's looking for a way to freeze the rule that will "stick." "Our sense is that he [Acosta] is still looking for a 'solution' that could be implemented in final form before June 9," Fred Reish, partner in Drinker Biddle & Reath's employee benefits and executive compensation practice group in Los Angeles, told ThinkAdvisor on Thursday. "He seems to want an answer that cannot be challenged successfully in court. But, we think he is still looking for that answer." News is that Acosta told Sen. Tim Scott, R-5.C., that he "recognized the urgency of the situation" and that he is looking for a way to halt the rule - which has been delayed from April 10 to June 9. The National Association for Plan Advisors says that according to the communication between Acosta and the senator, "Scott pressed the case against the rule, saying that it wasn't going to hurt Wall Street as much as it will hurt everyday Americans who need access to investment advice." Scott and Acosta met to follow up on a letter that Scott and eight other GOP senators sent to Acosta on April 28 urging the DOL, "pursuant to the president's memorandum and in light of the numerous concerns with the final fiduciary rule," DOL-17-0281-K-000180 AO 836892 OSEC 000180 to carry out "the president's directives without delay and finalize a new fiduciary rule review before any part of the rule becomes applicable." NAFA "is pleased by news reports that Secretary Acosta is making the fiduciary rule his number one priority and purportedly looking for ways to freeze the rule," Eric Marhoun, chair of NAFA's DOL steering and litigation committee, who's also executive vice president and general counsel for Fidelity & Guarantee Life in Des Moines, told ThinkAdvisor Thursday. NAFA launched a grassroots campaign on May 8 to appeal directly to the Trump administration as well as to Acosta to stop Labor's fiduciary rule from taking effect on June 9. Marhoun said the trade group "will continue pushing hard for the White House and Secretary Acosta to honor the president's directive that this rule be studied carefully before any part of it takes effect, and hopes ultimately the rule will be repealed in its entirety consistent with the president's agenda to eliminate wasteful and unnecessary regulations that do far more harm than good." The "sense is there needs to be action quickly -- within the next week or two," Marhoun added. Not Responsive DOL-17-0281-K-000181 AO 836892 OSEC 000181 Message From: Sent: To: CC: Subject: Morning News Clips: 5/12/17 5/11 Benefits Pro DOL's Acosta likely limited in delaying fiduciary rule's June 9 implementation date Click Here Not Responsive Article 1 DOL's Acosta likely limited in delaying fiduciary rule's fune 9 implementation date Benefits Pro Nick Thornton 5/11 An email from Labor Secretary Alexander Acosta to Sen. Tim Scott, R-SC,leaked to industry opponents of the fiduciary rule by a Scott staffer, said rolling back the rule was Acosta's top priority, according to reporting on NAPA-net.org and insurancenewsnet.com. The email suggests Acosta is pursuing options that will stop the controversial rule in a way that will "stick" The leaked communique comes as scores of Republican lawmakers have called for Acosta to further delay the June 9 implementation date of the rule's impartial conduct standards, which requires advisors on all qualified retirement investment accounts to act in the best interest of investors. DOL-17-0281-K-000182 AO 836892 OSEC 000182 Several industry organizations have undertaken media and grassroots campaigns, calling on Acosta and Labor to delay the June 9 implementation date until the agency completes the review of the rule ordered by the Trump administration in a February presidential memorandum. But Acosta has limited, if any options to issue a delay of the June 9 requirement that advisors serve as fiduciaries, according to some industry insiders and at least one attorney expert in the Employee Retirement Income Security Act. Further delaying the June 9 deadline would require opening a new proposed final rule for comment, which would require more than the 30 days remaining before the June requirement. "This is an APA issue," said Erin Sweeney, an attorney with Miller & Chevalier, referring to the Administrative Procedure Act, the federal statute that governs how federal agencies write regulations. "If DOL thought they could just march in and delay this, they would have already done so," said Sweeney, who was a senior benefit law specialist at Labor between 2003 and 2007. "The agency has reached the legal conclusion that they can't just issue a delay without a further notice and comment period," she added. In their letter to Acosta urging delay of the June 9 impartial standard requirement, House Republicans said a primary concern with the rule is that "financial advisors would be forced to move from commission-based advisory accounts to fee-based advisory accounts, and that advisors would be unlikely to afford to continue providing advice to small, fee-based accounts." To illustrate that point, the letter uses the example of a $2,000 account, which if charged a 1 or 2 percent advisory fee would generate between $20 and $40 in fees, a level of compensation that would dis-incentivize investment advice providers from servicing the account. Proponents of the rule say new robo-advisor capabilities at legacy investment firms will allow small investors continued access to investment platforms, if not one -to -one advice. News of the leaked email from Sec. Acosta to Sen. Scott comes as "everyone and their kid sister is lining up" to meet DOL-17-0281-K-000183 AO 836892 OSEC 000183 with the new Labor Secretary, said Sweeney. When the Labor Department delayed the original implementation date by 60 days to June 9, several media outlets published editorials claiming that career regulators were acting in open defiance of President Trump's memorandum to reexamine the impact of the rule . But Sweeney's contacts at the Labor Department call the notion of a so-called Deep State "fantastical." "Is there an underground mafia at DOL?There are people who really believe that, but it's not reality," said Sweeney . Regulators' primary reason for delaying, but maintaining compliance with the rule's impartial conduct standards, was cost, explained Sweeney . In issuing the final rule to delay the first implementation date, Labor said the cost of doing so will be $147 million this year in unrealized investment gains by retirement investors, a number that was based on the rule's regulatory impact analysis . Issuing a longer delay until the completion of the new economic impact analysis would have cost investors exponentially more. Labor has said it expects to complete its analysis before January 1, 2018, when the bulk of the rule is scheduled for implementation . "They base their numbers on their own regulatory impact analysis, and the DOL has to live with that. But their numbers show this is a very expensive regulation to hold up," said Sweeney. Labor justified the $147 million cost of the 60 -day delay on the fact that "there is a significant risk of a confused and disorderly transition process, rushed business decisions, and excessive expenses because of deadlines that are now too tight," according to language in the rule delaying the original implementation date . Sweeney said one particular clause in Labor's delay took industry by surprise and may have motivated some the claims of internal mischief by regulators. The Department said keeping the June 9 impartial conduct standards requirement was motivated "by the prospect DOL-17-0281-K-000184 AO 836892 OSEC 000184 of their likely continuation." That claim came across as excessively presumptuous to industry opponents, said Sweeney. "People were up in arms over that," she said. "It was a mistake, but I think it was accidental. It gave the impression that DOL staff was trying to ram through the impartial conduct standards." But the mistake also proves the absence of a Deep State, thinks Sweeney. If regulators were working in a coordinated effort to subvert the Trump administration, they would not have included that language. "It would have telegraphed their intentions, which, if they were working secretly, they would have wanted to hide," she said. Article_2 ____________________________________________________________________________________________________ . ________ Not Responsive DOL-17-0281-K-000185 AO 836892 OSEC 000185 Not Responsive DOL-17-0281-K-000186 AO 836892 OSEC 000186 Not Responsive DOL-17-0281-K-000187 AO 836892 OSEC 000187 Not Responsive DOL-17-0281-K-000188 AO 836892 OSEC 000188 Not Responsive DOL-17-0281-K-000189 AO 836892 OSEC 000189 Not Responsive DOL-17-0281-K-000190 AO 836892 OSEC 000190 Not Responsive DOL-17-0281-K-000191 AO 836892 OSEC 000191 Not Responsive DOL-17-0281-K-000192 AO 836892 OSEC 000192 Not Responsive DOL-17-0281-K-000193 AO 836892 OSEC 000193 Not Responsive DOL-17-0281-K-000194 AO 836892 OSEC 000194 Not Responsive DOL-17-0281-K-000195 AO 836892 OSEC 000195 DOL-17-0281-K-000196 AO 836892 OSEC 000196 Message From: Sent: To: CC: Subject : All Eyes on Acosta as DOL Rule Clock \Vinds Down Insurance News Net, John Hilton, 5/13 If changes to the Department of Labor fiduciary rule are not made soon, the chances of any concessions go down sharply, industry officials say. The main thrust of the rule - that anyone working with retirement dollars adhere to a fiduciary standard - is scheduled to take effect June 9. Industry representatives are furiously lobbying the DOL for another delay. Opponents are pinning their hopes for an 11th hour reprieve from new Labor Secretary Alexander Acosta, who was finally sworn in April 28. While he hasn't spoken publicly on the fiduciary rule, Acosta wants to freeze the rule permanently, according to an email a Senate aide sent to rule opponents on Tuesday. That was welcome news to rule opponents. "Things need to be done within the next week to 10 days," said Chip Anderson, executive director of the National Association for Fixed Annuities. "The time crunch right now makes it critical that we get something done." Here is where the three-part rule stands: DOL-17-0281-K-000197 AO 836892 OSEC 000197 • The fiduciary rule: This will go into effect June 9 and requires anyone working with retirement dollars to act in the best interest of the client at all times, and be able to prove it, or face possibility of a lawsuit. • The Best Interest Contract Exemption: The rule requires a BICE to sell variable and fixed indexed annuities. But the BICE mandates, which include hefty disclosures and a signed contract, among others, will not go into effect until Jan. 1, 2018. • The Prohibited Transaction 85-24: The rule adds Impartial Conduct Standards to PTE-84-24, which include acting as a fiduciary, accept only "reasonable" compensation, and make no materially misleading statements. The DOL is permitting the sale of fixed indexed annuities and variable annuities with commission under PTE 84-24 until Jan. 1, 2018. Up to Acosta The question for rule opponents is whether Acosta will carry out President Donald J. Trump's anti-regulatory fervor, and if there is even enough time to do so. Trump's Feb. 3 memo tasked the DOL with delaying the rule to study whether the rule will deprive Americans of retirement advice and/or add undo cost burdens. Lacking a secretary, DOL took five weeks to produce a 60day delay. The short delay frustrated rule opponents. After all, Anderson noted, the comment period on the questions raised by the president's memo just ended on April 17. "They delayed or dragged their feet on this," he said. "Only giving a 60-day delay was never enough time for the DOL to review all the information they needed to look at." It is logical to assume that Acosta will carry out Trump's directive, as he suggested he would during his confirmation hearing. But at least one Beltway insider said killing the rule is not the slam dunk it might seem. Acosta is a Harvard Law School graduate, former clerk to Supreme Court Justice Samuel Alito, a former U.S. Attorney and a former law school dean. He isn't likely to endorse a strategy destined to fail legal scrutiny, the analyst said. DOL-17-0281-K-000198 AO 836892 OSEC 000198 The secretary is "between a rock and a hard place," added another legal analyst. Although Acosta reportedly told Sen Tim Scott, R-S.C., that the fiduciary rule is his No. 1 priority, budget concerns are an immediate concern. Trump's preliminary budget cuts 21 percent from the DOL. Final Push Although the DOL staff wrote the 60-day delay with language making it hard to delay the rule again, Anderson is hopeful that Acosta getting his own staff in place bodes well for rule opponents. The industry's full-court press includes print ads in Roll Call and The Hill, along with digital ads on Twitter. The American Council of Life Insurers also began advertising this week in Politico Morning Money for fiduciary regulation opponents to register their complaints. Still, if June 9 comes and goes without a delay, the fiduciary standard will likely be in place for good, industry sources say. There is a chance the BIC and the PTE 84-24 exemptions could be delayed past the Jan. 1, 2018 deadline. But with the fiduciary standard in place, opponents say the liability issue will hurt the industry and make it tougher for small savers to get access to financial advice. DOL-17-0281-K-000199 AO 836892 OSEC 000199 Message From: Sent: To: Subject: Attachments: RA Acosta i (b){6) : 1 l__5/13/2TJI7 ~6:17: 12 PM-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ( b)( G)______________________________________________ .·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ~!(~l ____________________________ J________________ : r---~~~~-~~-~i~~-°-1~:-~-~-=-~-~-~-l---------------------------------·-·1b)(6f Redline if changes OpEd - Principles 02.docx DOL-17-0281-K-000200 AO 836892 OSEC 000200 Message Here are a few comments and suggestions in track changes. ·-·-·-·Ifyou need any discussion, I can chat almost anytime all day.1 .... ..,...Ft_______________ ·__ ..._ __ c-·-·-·...., .,.,_____ ' ·-·-· .e: ·-·-·-· ...___ .i ·-· _., ·-·-·-·-·-·-· · ·-·-·-·-·-·-· i ______1 ·-· Not Responsive ! N°blRi~pOns1ve-'-•·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-j FYI. Tim is available today if you want to have him come in and brief you more fully on fiduciary rule. I'd like to [_______________________________________________________________ Not __ Respo ns ive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-i From: RA Acosta Sent: Saturday, May 13, 2017 6:17:12 PM To: Geale, Nicholas C. - SOL Subject: Redline if changes DOL-17-0281-K-000201 AO 836892 OSEC 000201 Message From: Sent: To: CC: Subject : Morning News Clips: 5/15/17 5/15 Nasdaq The Fate of the Fiduciary Rule Comes Down to This Click Here Not Responsive · ·-v-vr·c1/""1Y~-·a,;,-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· The Fate of the Fiduciary Rule Comes Down to This Nasdaq FINSUM 5/15 The fight over the implementation of the fiduciary rule has been one for the ages. The rule itself is ideologically polemi cal, and the resultant fight has been just as divisive. And for all the recent efforts to overturn the rule, including an executive order and a forthcoming vote on the CHOICEAct, the fate of the rule is likely to come down to one thinghow well new DOL chief Acosta is able to execute his plans to terminate the rule . Acosta has not yet spoken publicly about the fiduciary rule, but a senator has confirmed his top priority is permanently getting rid of it. Acosta is an experienced legal mind, and once he has his team in place, he will need to find a way to quash the rule. FINSUM : The CHOICEAct, seems like it has little chance surviving in the Senate, and the courtroom battles are probably a long shot. Therefore the best chance for termination of the rule is from internal moves within the DOL. - Not Responsive DOL-17-0281-K-000202 AO 836892 OSEC 000202 Not Responsive DOL-17-0281-K-000203 AO 836892 OSEC 000203 Not Responsive DOL-17-0281-K-000204 AO 836892 OSEC 000204 Not Responsive DOL-17-0281-K-000205 AO 836892 OSEC 000205 Not Responsive DOL-17-0281-K-000206 AO 836892 OSEC 000206 Not Responsive DOL-17-0281-K-000207 AO 836892 OSEC 000207 Not Responsive DOL-17-0281-K-000208 AO 836892 OSEC 000208 Not Responsive DOL-17-0281-K-000209 AO 836892 OSEC 000209 Not Responsive DOL-17-0281-K-000210 AO 836892 OSEC 000210 Not Responsive DOL-17-0281-K-000211 AO 836892 OSEC 000211 Not Responsive DOL-17-0281-K-000212 AO 836892 OSEC 000212 Message From: Sent: r·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 L~~~~~~~?~~~~~i~(~t~~~~~=~~~~~~~~JJ (b)(6) I 5/15/2017 5 :3 2 :2 3 PM '·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·' To: CC: L::;::~::~;,J-os,c;=::::::::::::= (bl<•> (b)(;~J!6l-::::::== I {b)(6) '! (b}(6} I Subject: '==_i ::::::::::::! !Rogers, Jillian B- OSEC ~~zelton,Jennifer-OSEC {b) {6) ' 'Evening Clips 5/15 t"mec, WayoeO· Apologies for the delay. Evening News Clips: 5/15/17 .·-·-· ·-·---~----·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ' ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-~·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·--·-~·-·-·-·-·-·-·-·-·-·-·-·-· Not Responsive ! j _______ ·-·-·-·-·-·-·-·-·-·-·-· 5/15 .-·-··-·-·-·-·-·-·-·-·-·-·-· Li ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Forbes ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Trump's Decision To Delay Fiduciary Rule Could Improve Final Version Click Here ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-· Not Responsive Not Responsive DOL-17-0281-K-000213 AO 836892 OSEC 000213 Not Responsive DOL-17-0281-K-000214 AO 836892 OSEC 000214 -·-·-·-·-·l- ...'-.-·"T""----·-·-·-·-·-·J·-·-·· ·-·· ·-"--·-·-'- ··-·-·-·-·-·:..i.1._. ________________ J . .l._. __ "-l·-·-·-·-·-·..D.lf:""t.,I. I -·-·-·-·-·-·-·J·-·-'-·-·-'--·-'--·-·-·-·-·- ·J·-·-·-·-·-'- •·-·-·-'-·-·-· •·-·-·-·-·-·-·-·-·-·1--.L----·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·L·-·-·- Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 2 Trumi;fs Decision To Delay:Fiduciary: Rule Could lmi;1rove Final Version Forbes Jessica Karmasek 5/15 While some have decried the U.S. Department of Labor's recent decision to delay implementation of its controversial fiduciary rule, some, including Uday Singh, contend a closer look at the rule has proven somewhat beneficial. Singh, a partner in the financial institutions practice of A.T. Kearney, a global strategy and management consulting firm, has been studying the issue for some time. According to his bio, he has extensive industry and consulting experience with a focus on top-line engagements in asset management, wealth and banking. He also specializes in front-to-back office operating model design, efficiency and effectiveness improvement, and operations and channels optimization. An A.T. Kearney study published in October, which Singh co-authored, looked at the impact of the new fiduciary rule on the U.S. wealth management industry. At the time, the study estimated the rule would lead to an erosion of almost $20 billion in revenues for the industry annually by 2020. DOL-17-0281-K-000215 AO 836892 OSEC 000215 But with the rule "on tenterhooks," so to speak, many bets are off, Singh said in a recent interview with Legal Newsline. The DOL released its final rule in April 2016. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the "best interest" of the savers and disclose conflicts of interest. Last month, the department released a measure officially delaying the implementation exemptions by 60 days. The applicability date now is June 9. of the rule and its related Written disclosure requirements and the full best-interest contract, or BIC, exemption are still scheduled for Jan. 1, 2018 implementation, according to the DOL. The decision to delay the rule was made in response to President Donald Trump's Feb. 3 order, directing the department to review the rule and determine whether it may "adversely affect" the ability of Americans to gain access to retirement information and financial advice . "Regardless of one's politics, I think we can agree that (the order) was unexpected, but one cannot argue that looking at (the rule) is a bad thing," Singh said. Singh said the decision to seek a delay and solicit comments on the issue has, in many ways, proven beneficial. "I would argue that new information has emerged," he said. Granted, the rule was researched and discussed the last seven or eight years. But companies have been gearing up for its implementation in only the last 12 to 18 months, Singh pointed out. In that time, two key pieces of information have come to light, he said. "First, there is a quantification done by advisers on the population that they will not be serving anymore -- i.e. what is the extent of that reduction in availability of advice -- and secondly, that some low -cost advice solutions have emerged," he explained. "You put that together, then absolutely the DOL already has a lot of new information to look at. And in that sense, there is a lot of value in delaying (the rule) a bit to see if it can be sharpened, to be better." U.S. House Democrats have argued any delay of the rule would be to the benefit of advisers and harmful to savers. Only implementing the rule on schedule, they wrote Edward Hugler, the former acting secretary of labor, would protect workers' "hard-earned retirement savings." "For far too long, certain unscrupulous financial advisers have been able to put their own financial interests and profit motives ahead of their retirement clients'," they wrote Hugler in March. "This insidious practice -- known as providing conflicted advice -- costs retirement plan participants an estimated $17 billion annually. "The fiduciary rule is a responsible solution that will ensure workers and families get unbiased advice when investing their hard-earned retirement savings." As to who the delay benefits the most, Singh said it ' s a toss-up. "An argument can be made in either direction, honestly, and it has," he said. That's why the 60-day delay is important, but a longer delay is even more necessary, he argues. "It's really not adequate," Singh said. "I think 60 days may end up being an initial period and it may be further delayed. DOL-17-0281-K-000216 AO 836892 OSEC 000216 "I think, after examining it in these 60 days, it's going to take the department longer than it expected to figure out what it's going to say." Singh said the DOL, in particular, needs to consider the number of people being pushed out. "That needs to be weighed by them in a deliberate manner," he said. In the end, Singh said he expects some variant of the current rule to be implemented -- and companies need to prepare for the same, if they haven't already. "There is a drive to have a fiduciary standard," he explained. "Companies and adviser firms should be planning to live in that context. Any deviations from that should be a very deliberate choice." He continued, "It's not that the DOL has given breathing room to companies. Companies, during this time, need to look not just at how to comply with the rule, but how they should be retooling all of their business practices and operations with that standard in mind. "So, in that sense, it's only a small reprieve for them. It gives them a chance to figure all of that out." Fred Reish, a partner with Drinker Biddle & Reath LLPand who chairs the law firm's Financial Services ERISATeam, which is a group that represents providers and advisers to plans and IRAs, said a large percentage within the industry already have started complying with the new rule, but still roughly less than half. "Much work remains to be done before the new rule applies on June 9," he pointed out. In order to comply, advisers need to do a variety of things, said Reish, who has clients on both sides of the issue. "While some are already complying, others need to be more careful about the advice they give; yet others may need to reduce their charges," he said. Because of its complicated disclosure rules, there is the possibility of more litigation where advisers violate the Impartial Conduct Standards, Reish explained. "As a result, some people think that the charges to investors could increase to cover those extra burdens," he said. While admittedly not perfect, Singh said it's difficult to argue against the DOL's rule . "I think the rule is great in concept," he said. "It's really hard to argue that advisers should not be acting in the best interest of their clients." Still, the rule remains problematic, with some segments of retirees or future retirees with assets below a certain amount . Because of that, they may not have the same access to advice, Singh said. "A lot of these people are being purged from the system," he said, adding that the rule also is taking money out of the industry itself. "It will have an impact on adviser competition. Certainly, that is very significant." ; Not Responsive i·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- DOL-17-0281-K-000217 AO 836892 OSEC 000217 Not Responsive DOL-17-0281-K-000218 AO 836892 OSEC 000218 Not Responsive DOL-17-0281-K-000219 AO 836892 OSEC 000219 Not Responsive DOL-17-0281-K-000220 AO 836892 OSEC 000220 Not Responsive DOL-17-0281-K-000221 AO 836892 OSEC 000221 Not Responsive DOL-17-0281-K-000222 AO 836892 OSEC 000222 Not Responsive DOL-17-0281-K-000223 AO 836892 OSEC 000223 Not Responsive Not Responsive Article 9 The DOL Fiduciary Rule May Be Doomed as Lawmakers Prepare to Scuttle its Imp lementation DOL-17-0281-K-000224 AO 836892 OSEC 000224 Forex TV Timothy Kelly 5/15 When the Obama Administration sought to side-step Congressional approval and empowered the Department of Labor (DOL) to enforce what is now referred to as the DOL Fiduciary Rule, it may have sealed the fate of this controversial plan. Now that Alexander Acosta is officially in as Labor Secretary, the DOL rule has slowly been losing its teeth as industry opponents and a Republican-led Congress chip away at its foundation. To date, legal challenges to the DOL Fiduciary Rule have also failed under a judiciary some saw as partial to Obama-era policies. Without Congressional approval, such policies are highly vulnerable as the sweeping change of power in Washington begins to shrink and virtually erase Obama's legislative legacy. Side-stepping Congressional approval essentially put an expiration date on the DOL Fiduciary Rule and that date is not rapidly approaching. As reported in a post on the National Association of Plan Advisors (NAPA) web site last week, Acosta may be looking to put an end to the DOL Fiduciary rule swiftly and finally. This comes on the heels of a letter sent to Secretary Acosta by the Senate Committee on Health, Education, Labor and Pensions urging the Secretary to freeze the current DOL Fiduciary Rule implementation pending further "exhaustive review." Translation: The DOL Fiduciary Rule may just have been given its last rites. In writing to Acosta, the Committee stated, "We believe that individuals who provide investment advice should act in the best interests of their clients. However, regulatory mandates must not stand in the way of Americans' access to retirement education or services." In particular, the Committee letter argues that the DOL Fiduciary Rule creates hardship for holders of Individual Retirement Accounts (IRAs) "by interfering with owners' access to investment education." The Committee's letter echoes the arguments of critics of the Rule by further stating: ...the final rule harms Individual Retirement Account (IRA) owners by interfering with owners' access to investment education. The final rule makes illogical distinctions between the same educational services for different types of retirement accounts. These harmful distinctions will result in advisors who want to avoid legal liability being unwilling to provide general education to IRA owners who, as a result, may be less informed as they make crucial decisions on how to best invest their IRA savings for retirement. The final rule also limits assistance for individuals who are leaving employment and considering withdrawing savings from their 401(k) or IRA plans prior to retirement, which ultimately hurts retirement savings. While Secretary Acosta has not yet confirmed any formal plan to deal with the DOL Fiduciary Rule, the industry now seems to accept that it will fade into a memory before it ever is enacted. Not Responsive DOL-17-0281-K-000225 AO 836892 OSEC 000225 Not Responsive DOL-17-0281-K-000226 AO 836892 OSEC 000226 Not Responsive DOL-17-0281-K-000227 AO 836892 OSEC 000227 Not Responsive DOL-17-0281-K-000228 AO 836892 OSEC 000228 Not Responsive DOL-17-0281-K-000229 AO 836892 OSEC 000229 Not Responsive DOL-17-0281-K-000230 AO 836892 OSEC 000230 Message From: Sent: To: b) (6) RA-Acosta.I-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(b)(6)_(b)( ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~-:-~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~] C_ Subject: Attachments: i [~~~a~--~~--=·i~~hl~iil~~-~--~--!~~--~-~--~--J ( 5/15/2017 9 :34: 4 9 PM '·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· . 6) As discussed Options for paragraph revised.docx Will bring copy down also. DOL-17-0281-K-000231 AO 836892 OSEC 000231 Message From: Sent: To: CC: Subject : Evening News Clips: 5/16/17 -•-•-• __ ;,:-_(.,._ ,-•-•-•-•-•-• •-•L--..C.-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-•-• •---•-•-•J::llo . ......._l_ . .-...•-•-•-•• ...,.. ____ _,_ ••-•-•-•C'\-•-•-•-•.,,..._.t;ry -•• •-'.J•-•-<'C't-•-•-•-•-•-•-'-•-•~'-'-"-•-•-•-•- -•- ·•• •-1-.J.J.-•-•-•-•-•-•-•-•-•- •-•- Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 5/16 On Wall Street Even if Trump repeals the fiduciary rule, Dal has reshaped the industry Click Here 5/16 Investment News Finra chairman John Brennan says DOL rule has raised standard for financial advice Click Here 5/16 Legal News Line Trump's decision to delay fiduciary rule might improve final version Click Here - Not Responsive DOL-17-0281-K-000232 AO 836892 OSEC 000232 Not Responsive DOL-17-0281-K-000233 AO 836892 OSEC 000233 Not Responsive DOL-17-0281-K-000234 AO 836892 OSEC 000234 Not Responsive DOL-17-0281-K-000235 AO 836892 OSEC 000235 Not Responsive DOL-17-0281-K-000236 AO 836892 OSEC 000236 Not Responsive Article 6 Even if Trump repeals the fiduciary rule, Dal has reshaped the industry On Wall Street Kenneth Corbin 5/16 Whether or not the Department of Labor's long-delayed and controversial fiduciary rule ultimately becomes the law of the land is almost beside the point, according to Jack Brennan, the former Vanguard CEO who now chairs FINRA's board of directors. "The highly publicized debate has already reshaped business practices and investor expectations, so that the bestinterest measure of advice is on its way to becoming the de facto industry standard," Brennan argues. He expects FINRA and the SECwill eventually move on crafting similar regulations, shoring up a trend that the Labor Department started when it unveiled the fiduciary rule in April 2016. "Whatever happens to Dal, it served its purpose by getting the 'best interest' terminology into the industry and into the press and into a lot of things," Brennan told attendees at FINRA's annual conference, where he sat for an on-stage interview with Robert Cook, the regulator's CEO. Brennan suggested that the term fiduciary is a "highfalutin kind of word" that did little to help the issue gain traction with investors. As to the fate of the Labor Department's rule, the future is anything but certain. The department has already moved once to delay implementation of the rule, which is now set to take effect June 9, though rumors abound that officials could seek a further delay or move to shelve the regulation entirely. NEXT AT BAT: SEC,FINRA So how should firms respond? Stay the course, argues Brennan. "My own view is that firms should keep on that track because ... it's going to be the way business is done. The question is, is it on June 10, or is it on June 10, 2022," he says. In any case, even if the Labor Department abandons or significantly alters its proposal, Brennan anticipates that the SEC or FINRA could move ahead with similar regulations governing investment advice. Both regulators have been sending DOL-17-0281-K-000237 AO 836892 OSEC 000237 signals that they expect advisers to place their clients' interests above their own when making investment recommendations. "That channel is not locked, in a sense, by the Department of Labor," he says. "My guess is the SECand FINRA are going to go down that path, because it's the right place to be." So for brokerage firms that may not be currently bound by a best-interest standard of advice, Brennan believes that the smart move is to get "front and center around best interest and a plan to ensure that's who you are as a firm down the road, irrespective of whether it's required by Dal." "Because it's hard for me to imagine that the SECand FINRA aren't going to follow that path," he says. If anything, the months of preparations for the Labor Department's rule, when many firms retooled their product offerings and service models, demonstrated to Brennan that a best-interest standard for advice is eminently workable, and stand as an "unbelievable tribute" to the adaptiveness of the industry. "Seeing what the industry did with the prospect of the rule shows that it can be done, and the adviser can still have a very good income and the firms can do well," he says. "It's just as much a mindset change, recognizing that this transition has to occur." Article 7 Finra chairman John Brennan says DOL rule has raised standard for financial advice Investment News Mark Schoeff Jr. 5/16 Finra chairman John J. Brennan said on Tuesday that even if the Labor Department's fiduciary rule is repealed, it has elevated and put into plain language the idea of providing investment advice that's better for clients' returns than for financial advisers' revenue. "Whatever happens to DOL, it served its purpose by getting best-interest terminology into the industry," Mr. Brennan, the former chairman and president of the Vanguard Group, said at the annual conference of the Financial Industry Regulatory Authority Inc. in Washington. "Firms should keep on that track. It's going to be the way business is done. The question is whether it is on June 10 or on June 10, 2022." The DOL regulation, which would require financial advisers to act in the best interests of their clients in retirement accounts, was supposed to be implemented on April 10. That date was pushed back to June 9 so that the agency can reassess the measure under a directive from President Donald J. Trump that could lead to its modification or repeal. If the DOL rule meets its demise, the concept will live on at the Securities and Exchange Commission and at Finra, the broker-dealer self-regulator, Mr. Brennan said. "My guess is that the SECand Finra are going to do down that path because it's the right place to be," Mr. Brennan said. The Dodd-Frank financial reform law gave the SECthe authority to promulgate a uniform fiduciary standard for retail investment advice. It's not clear where the new SECchairman, Jay Clayton, stands on the issue. "I hope it will be part of the agenda," Mr. Brennan told reporters on the sidelines of the Firna conference. Finra president and CEO Robert Cook said he supports the concept of raising advice requirements for brokers. They are currently governed by the suitability standard, which gives them latitude to sell high-fee investment products as long as they align with investors' needs. Investment advisers are held to a best-interests requirement. "There should be a best-interest standard for brokers," Mr. Cook told reporters. "Whether it looks exactly the same as DOL-17-0281-K-000238 AO 836892 OSEC 000238 [the standard for] advisers, I'm not sure about that. I'm not saying I'm against it. At this point, the SECwould be the one to take the lead on this. If they came out with a best-interest standard, we might need to look at our suitability." Mr. Cook's predecessor, Richard Ketchum, consistently urged brokers to act in the best interests of their clients, even if they are not forced to do so by regulation. He initially opposed the DOL regulation but softened some of his criticism after it was modified. Financial industry critics say the DOL rule is too burdensome and costly and will price investors with modest assets out of the advice market. Supporters say it is necessary to protect workers and retirees from conflicted advice that leads to inappropriate high-fee investments that erode savings. "The market gets the idea of best interest," Mr. Brennan told reporters. "Whether you're suitability or fiduciary, the great firms have always [followed] best interest. So, you get down to the mechanics." Usually, the debate about investment-advice standards also leads to a discussion of a potential shift of adviser oversight from the SECto Finra should regulation converge. Mr. Cook stayed neutral on that question. "Right now, we're focused on our mission, which is to oversee broker-dealers," Mr. Cook told reporters. "The SEChas asked us to be focused on that mission so that they can allocate more of their resources to investment advisers." Article 8 Trump's decision to delay fiduciary rule might improve fina l version Legal News Line Jessica Karmasek 5/16 While some have decried the U.S. Department of Labor's recent decision to delay implementation of its controversial fiduciary rule, some, including Uday Singh, contend a closer look at the rule has proven somewhat beneficial. Singh, a partner in the financial institutions practice of A.T. Kearney, a global strategy and management consulting firm, has been studying the issue for some time. According to his bio, he has extensive industry and consulting experience with a focus on top-line engagements in asset management, wealth and banking. He also specializes in front-to-back office operating model design, efficiency and effectiveness improvement, and operations and channels optimization. An A.T. Kearney study published in October, which Singh co-authored, looked at the impact of the new fiduciary rule on the U.S. wealth management industry. At the time, the study estimated the rule would lead to an erosion of almost $20 billion in revenues for the industry annually by 2020. But with the rule "on tenterhooks," so to speak, many bets are off, Singh said in a recent interview with Legal Newsline. The DOL released its final rule in April 2016. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the "best interest" of the savers and disclose conflicts of interest. Last month, the department released a measure officially delaying the implementation exemptions by 60 days. The applicability date now is June 9. of the rule and its related Written disclosure requirements and the full best-interest contract, or BIC, exemption are still scheduled for Jan. 1, 2018 implementation, according to the DOL. The decision to delay the rule was made in response to President Donald Trump's Feb. 3 order, directing the department DOL-17-0281-K-000239 AO 836892 OSEC 000239 to review the rule and determine whether it may "adversely affect" the ability of Americans to gain access to retirement information and financial advice. "Regardless of one's politics, I think we can agree that (the order) was unexpected, but one cannot argue that looking at (the rule) is a bad thing," Singh said. Singh said the decision to seek a delay and solicit comments on the issue has, in many ways, proven beneficial. "I would argue that new information has emerged," he said. Granted, the rule was researched and discussed the last seven or eight years. But companies have been gearing up for its implementation in only the last 12 to 18 months, Singh pointed out. In that time, two key pieces of information have come to light, he said. "First, there is a quantification done by advisers on the population that they will not be serving anymore -- i.e. what is the extent of that reduction in availability of advice -- and secondly, that some low-cost advice solutions have emerged," he explained. "You put that together, then absolutely the DOL already has a lot of new information to look at. And in that sense, there is a lot of value in delaying (the rule) a bit to see if it can be sharpened, to be better." U.S. House Democrats have argued any delay of the rule would be to the benefit of advisers and harmful to savers. Only implementing the rule on schedule, they wrote Edward Hugler, the former acting secretary of labor, would protect workers' "hard-earned retirement savings." "For far too long, certain unscrupulous financial advisers have been able to put their own financial interests and profit motives ahead of their retirement clients'," they wrote Hugler in March. "This insidious practice -- known as providing conflicted advice -- costs retirement plan participants an estimated $17 billion annually. "The fiduciary rule is a responsible solution that will ensure workers and families get unbiased advice when investing their hard-earned retirement savings." As to who the delay benefits the most, Singh said it's a toss-up. "An argument can be made in either direction, honestly, and it has," he said. That's why the 60-day delay is important, but a longer delay is even more necessary, he argues. "It's really not adequate," Singh said. "I think 60 days may end up being an initial period and it may be further delayed. "I think, after examining it in these 60 days, it's going to take the department longer than it expected to figure out what it's going to say." Singh said the DOL, in particular, needs to consider the number of people being pushed out. "That needs to be weighed by them in a deliberate manner," he said. In the end, Singh said he expects some variant of the current rule to be implemented -- and companies need to prepare for the same, if they haven't already. "There is a drive to have a fiduciary standard," he explained. "Companies and adviser firms should be planning to live in DOL-17-0281-K-000240 AO 836892 OSEC 000240 that context. Any deviations from that should be a very deliberate choice." He continued, "It's not that the DOL has given breathing room to companies. Companies, during this time, need to look not just at how to comply with the rule, but how they should be retooling all of their business practices and operations with that standard in mind. "So, in that sense, it's only a small reprieve for them . It gives them a chance to figure all of that out." Fred Reish, a partner with Drinker Biddle & Reath LLPand who chairs the law firm's Financial Services ERISATeam, which is a group that represents providers and advisers to plans and IRAs, said a large percentage within the industry already have started complying with the new rule, but still roughly less than half . "Much work remains to be done before the new rule applies on June 9," he pointed out . In order to comply, advisers need to do a variety of things, said Reish, who has clients on both sides of the issue. "While some are already complying, others need to be more careful about the advice they give; yet others may need to reduce their charges," he said. Because of its complicated disclosure rules, there is the possibility of more litigation where advisers violate the Impartial Conduct Standards, Reish explained. "As a result, some people think that the charges to investors could increase to cover those extra burdens," he said. While admittedly not perfect, Singh said it's difficult to argue against the DOL's rule. "I think the rule is great in concept," he said. "It's really hard to argue that advisers should not be acting in the best interest of their clients." Still, the rule remains problematic, with some segments of retirees or future retirees with assets below a certain amount . Because of that, they may not have the same access to advice, Singh said. "A lot of these people are being purged from the system," he said, adding that the rule also is taking money out of the industry itself . "It will have an impact on adviser competition. Certainly, that is very significant." Not Responsive DOL-17-0281-K-000241 AO 836892 OSEC 000241 Not Responsive DOL-17-0281-K-000242 AO 836892 OSEC 000242 Not Responsive DOL-17-0281-K-000243 AO 836892 OSEC 000243 Message t~-e-~~-c~~-C'._T~f irx-~-~-?.?_E_~L.: {b){6) ' From: 5/17/2017 7 :0 5 :45 AM Sent: To: :.:::,s::: ;anB-- OSEC_i ------------(b:(:) CC: [!_ l l~l;;t) ____________ Gav;n Ji__________ L_______ ISm;t~, {b){6) ( b)( I" Subject: ; '"-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·" 6 OSEC ralmer,WayneD-OSEC ) Jenn;fec ' IHa,elton, i--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·~ Morning Clips 5/17 Morning News Clips: 5/17/17 5/16 Benefits Pro For DOL, killing fiduciary rule easier said than done Click Here Not Responsive Article 1 For DOL, killing fiduciary rule easier said than done Benefits Pro Nick Thornton 5/16 Any effort to delay the June 9 implementation date of the Labor Department's fiduciary rule will face significant procedural obstacles, and potential legal challenges, according to one administrative law expert. "It's not impossible to propose a new delay before the June 9 deadline, but there are substantial hurdles to doing so," said Bethany Davis Noll, an attorney with the Institute for Policy Integrity at the New York University School of Law. One hurdle is timing. The first 60-day delay of the rule took about five weeks from start to finish. A little more than three weeks remain before June 9. Labor Secretary Alexander Acosta has made rolling back the fiduciary rule a top priority, according to a leaked communication between Acosta and Sen. Tim Scott, R-SCthat was obtained by NAPA-net.org. DOL-17-0281-K-000244 AO 836892 OSEC 000244 Scores of Republican lawmakers and financial services and insurance industry trade groups have called on Acosta to delay the June 9 implementation of the impartial conduct standards until the agency completes a new economic impact analysis of the rule . In order to do that, Labor would have to issue a notice of a new proposed delay and request comments from stakeholders. A proposed delay would also have to include an updated cost benefit analysis, and give reasoned explanations for a change in the implementation date, including an explanation for disregarding the facts and circumstances that justified the first 60-day delay of the rule, Davis Noll explained . "A new delay would essentially amount to an effective repeal and that is something that would have to be justified," said Davis Noll. "Labor has a huge burden to overcome if they want to delay this." Some stakeholders have called on Labor to issue an indefinite delay of the entire rule. Courts would likely treat that as a repeal of the rule, and apply higher standards for Labor to justify the move. "A delay by itself is a substantive change--if it is indefinite, it is even more important to open the proposed rule to notice and comment. The bar for justifying an indefinite delay is even higher," said Davis Noll. Labor's litigation risk Any attempt to issue a temporary or indefinite delay could expose what Davis Noll says are substantively weak aspects of the first 60-day delay. That could give the upper hand to proponents of the rule, should they issue a legal challenge to a new delay . "If they try to delay the rule again, the problems with the first delay will be amplified," said Davis Noll. "It's highly likely Labor will be subjecting itself to a risk of litigation, if it hasn't already." Davis Noll, who previously served as assistant solicitor general for the state of New York, says the overall fiduciary rule was "impressive" and "really well done" in the context of administrative law. DOL-17-0281-K-000245 AO 836892 OSEC 000245 But the rule delaying the first implementation date by 60 days is less sound, she thinks. In the proposal to delay the rule, Labor's cost benefit analysis estimated retirement investors would lose $147 million to conflicted advice under a 60-day delay, while industry would save $42 million. When the delay was finalized, Labor walked back those estimates, based on the premise that "many firms have already taken steps toward honoring fiduciary standards," according to language in the delay rule. "There was no explanation or details about how much that compliance will help ameliorate the $147 million in losses that the delay could cause," said Davis Noll. In effect, any new delay would be based on the conclusion that industry needs more time to comply with the impartial conduct standards. That would be a direct contradiction to language in the first delay, which said the Department "finds little basis for concluding that advisors need more time to give advice that is in the retirement investors' best interest" beyond the June 9 deadline. If a new delay is issued, and challenged by proponents of the rule, Davis Noll said it's conceivable that a court could find fault in the reasoning behind the first delay, overrule it, and essentially apply the fiduciary rule to its original schedule. In other words, the prospect of a new delay introduces "considerable risk" for opponents of the rule that want to see it done away with altogether, said Davis Noll. APA chicanery at EPA, DOI In other agencies, regulators have made the bold move of issuing indefinite delays of Obama-era regulations without adhering to rule making requirements under the Administrative Procedure Act. Regulators at the Environmental Protection Agency and the Department of Interior have indefinitely delayed rules without issuing notice and taking comments. Those actions are being challenged in California and the District of Columbia federal courts. DOL-17-0281-K-000246 AO 836892 OSEC 000246 Regulators took similar tactics during the Reagan administration. The APA does have a "good cause" exception to notice and comment requirements, but on balance, courts have held that to be a very high bar to satisfy, allowing it in limited emergency situations that are outside of a regulatory agency's control, explained Davis Noll. "Courts have said that the imminence of a deadline is not enough to satisfy the good cause exception." The lawsuits against the EPA and DOI indefinite delays should be "slam dunk" cases, said Davis Noll. "The law is settled. You cannot issue an indefinite delay without notice and comment." At Labor, regulators likely won't have time to see how courts come down on the EPA and DOI rule delays. But those decisions could influence how courts would rule in a potential legal challenge to a delay of the fiduciary rule. That fact that stakeholders challenged the Trump administration's "That should be a red flag for DOL." loose application of the APA is telling, said Davis Noll. -·-·-·-· Artir:IR 7 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·__ _ Not Responsive DOL-17-0281-K-000247 AO 836892 OSEC 00024 7 Not Responsive DOL-17-0281-K-000248 AO 836892 OSEC 000248 Not Responsive DOL-17-0281-K-000249 AO 836892 OSEC 000249 Not Responsive DOL-17-0281-K-000250 AO 836892 OSEC 000250 Not Responsive DOL-17-0281-K-000251 AO 836892 OSEC 000251 Not Responsive DOL-17-0281-K-000252 AO 836892 OSEC 000252 Message From: Sent: r:~~~:;;J:ti'ji~~~~:=:!:::~J ___________________ J~)_(_~l_ ________________ __j •.RA_Acosta _:·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·'b )(6}_ _____________________________________________ L____________________________________ , To: i CC: i J __________________ , . . ,.'_Haze Ito n,_Jennifer - _OSEC1____·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-··( b)(6)___ ________________________________________ i {b)(6) •1 {b}{6} i~ ! Subject: (b)(6) L Evening Clips 5/17 ( b)(6) !Smith, Gavin J - OSEC !Rogers,JillianB-OSEC l~~-=~r, Wayne D - OSEC !(b)(6)! L--·-·-·-·1 Evening News Clips: 5/17/17 r ___ [ ___________ j_____________________________________ j______________________________________ j____________ ]_~ [___ ___________ __________________________ N _ot _Res po n s _ive____________________ ___________ _I 5/17 Forbes Law Prof: Trump's Lawless Behavior With Fiduciary Rule Undermines Process Click Here Not Responsive DOL-17-0281-K-000253 AO 836892 OSEC 000253 Not Responsive Article 2 Law Prof: Trump's Lawless Behavior With Fiduciary Rule Undermines Process Forbes Jessica Karmasek 5/17 Mercer Bullard, a strong advocate of the U.S. Department of Labor's new fiduciary rule, argues such a standard should have been adopted "decades ago" and the department's current 60-day delay could hurt future rulemaking. Bullard, a University of Mississippi law professor and founder of Fund Democracy, a group that advocates for mutual fund shareholders, is puzzled by the delay, arguing the rule had one of the most thorough vettings. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the "best interest" of savers and disclose conflicts of interest. "Half-a-dozen court rulings have found that the rule is well-justified," he recently told Legal Newsline. "The DOL, in issuing this delay, is undermining the credibility of administrative law and threatening the future viability of rulemaking. "No agency will ever again allow for a compliance period that runs into another administration if it knows this type of lawless behavior will lead to a rule being rejected by the new administration without any analysis." Currently, Bullard teaches courses on securities, banking, corporations, corporate finance, accounting and capital structure and valuation. He created and is the director of the law school's Business Law Institute. Bullard also has served on the Securities and Exchange Commission's Investment Advisory Committee and Public Company Accounting Oversight Board's Investor Advisory Group. He is considered, by some, one of the most powerful voices in the financial services industry. "I've been a strong advocate of the rule since the DOL started working on it," Bullard said, adding he has both testified about the rule and submitted various comments. He pointed out that the rule's initial proposal came in 2010, but it was in the works no later than 2009. A DOL spokesman told Legal Newsline the original rulemaking process required the consideration of "thousands" of comments, four days of public hearings, a detailed economic analysis, and "numerous" meetings and conversations with affected stakeholders. In April 2016, the DOL released its final version of the rule. Last month, the department released a measure officially delaying the implementation of the rule and its related exemptions by 60 days. The applicability date is now June 9. Written disclosure requirements and the full best-interest contract, or BIC, exemption are still scheduled for Jan. 1, 2018 implementation, according to the DOL. The decision to delay the rule was made in response to President Donald Trump's Feb. 3 order, directing the department to review the rule and determine whether it may "adversely affect" the ability of Americans to gain access to retirement information and financial advice. DOL-17-0281-K-000254 AO 836892 OSEC 000254 "The gist of the rule is to address significant differences in compensation practices in the broker dealer industry," Bullard explained. "In some cases, broker dealers can be paid three times as much as another. "While not all brokers will be tempted, there are some who will give one recommendation over another based on compensation." Fred Reish, a partner with Drinker Biddle & Reath LLPwho chairs the law firm's Financial Services ERISATeam, which is a group that represents providers and advisers to plans and IRAs, said the "heart-and -soul" of the new rule is that investment advisers and brokers must comply with three rules known as the Impartial Conduct Standards. "Those standards are that the adviser must adhere to a best interest standard of care in making investment recommendations to plans, participants and IRAs; the adviser must not charge more than reasonable compensation; and the adviser cannot make any materially misleading statements," Reish explained. "While not all brokers will be tempted, there are some who will give one recommendation over another based on compensation." Fred Reish, a partner with Drinker Biddle & Reath LLPwho chairs the law firm's Financial Services ERISATeam, which is a group that represents providers and advisers to plans and IRAs, said the "heart-and-soul" of the new rule is that investment advisers and brokers must comply with three rules known as the Impartial Conduct Standards. "Those standards are that the adviser must adhere to a best interest standard of care in making investment recommendations to plans, participants and IRAs; the adviser must not charge more than reasonable compensation; and the adviser cannot make any materially misleading statements," Reish explained. While Bullard argues the DOL rule should have been adopted "decades ago," he contends the rule, as it stands, doesn't go quite far enough. "It's a huge step in the right direction, no doubt," he said. The problem lies largely in the details, he said. "In the long term, yes, the industry has to provide less conflicted advice," Bullard said of the rule. "But most of these financial advisers act as de facto fiduciaries already. Hundreds of them claim to provide conflict-free advice. "The only difference now, really, is investors will be able to hold them accountable." As to whether the rule will be delayed again, go into effect at a later date or the Trump administration ultimately will kill it, Bullard said a lot of it depends on the new head of the DOL, R. Alexander Acosta . The U.S. Senate confirmed Acosta, Trump's pick to head the DOL, by a 60-38 vote April 27. At a confirmation hearing in March, Acosta said he intends to follow the President's February order directing the department to review its controversial new fiduciary rule. At the hearing, U.S. Sen. Elizabeth Warren, D-Mass., asked Acosta if he was confirmed before the DOL's proposed delay of the rule is finalized whether he would "promise to stop" the holdup. Warren contends the delay would cost Americans $3.7 billion. Acosta replied that he supports "following executive actions from the President, who will be my boss." DOL-17-0281-K-000255 AO 836892 OSEC 000255 "There is an executive action, which addresses with specificity the fiduciary rule," he testified. "It has asked the Department of Labor to look at the rule and to assess specific questions: Will the rule reduce the investment options available to investors? Will the rule increase litigation? Will the rule financially impact retiree investors? And the executive action directs the secretary of Labor and Department of Labor to repeal or revise the fiduciary rule if any of the criteria laid out in that executive order is found." "It really depends on whether the new secretary of labor is an ideological warrior or a public servant," Bullard said of Acosta. "If he turns out to be the former, we may see the delay amended to apply to all aspects of the rulemaking. "But if Acosta is a pragmatic public servant, he will evaluate the pros and cons of the rule and decide whether to issue proposed amendments between June and December." Among those amendments, Bullard surmises, is a prohibition against broker dealers requiring class action claims be resolved through arbitration. "To be honest, if Acosta decides it's all about ideology and not about the industry and investors, the rule might not survive at all," he said. But if left mostly intact, the rule is not likely to have much of an economic impact, Reish noted. "While the new rules will impact advice and investments for IRAs, they probably aren't significant in terms of the whole economy," explained Reish, who has clients on both sides of the issue. "Some say that the rules have already reduced the sales of indexed and variable annuities, but that's a long way from affecting the whole economy." Not Responsive DOL-17-0281-K-000256 AO 836892 OSEC 000256 Not Responsive DOL-17-0281-K-000257 AO 836892 OSEC 000257 Not Responsive DOL-17-0281-K-000258 AO 836892 OSEC 000258 Not Responsive DOL-17-0281-K-000259 AO 836892 OSEC 000259 Message From: Sent: To: CC: Subject: Morning News Clips: 5/19/17 Not Responsive '-· ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 5/19 Bloomberg ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· DOL Could See Lawsuit by Fiduciary Rule Supporters -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-· Click Here Not Responsive DOL-17-0281-K-000260 AO 836892 OSEC 000260 Not Responsive DOL-17-0281-K-000261 AO 836892 OSEC 000261 Not Responsive DOL-17-0281-K-000262 AO 836892 OSEC 000262 Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. Article 4 DOL Could See Lawsuit by Fiduciar}'.'.Rule Su(;!(;!Orters Bloomberg Kristen Ricaurte Knebel 5/19 The Department of Labor may experience deja vu in the form of more legal challenges if it further delays the fiduciary rule, this time from the rule's supporters . "If they delay the rule again, they should expect to get sued. We are one of several consumer organizations that would not let this go," Micah Hauptman, financial services counsel at the Washington-based Consumer Federation of America, told Bloomberg BNA.The department "should expect to be challenged vigorously in court" if the two provisions of its fiduciary rule that are set to go into effect June 9-the revised definition of the term fiduciary and the impartial conduct standard-are delayed again, Stephen Hall, legal director of the advocacy group Better Markets, told Bloomberg BNA. A legal challenge from rule supporters would likely be brought under the Administrative Procedure Act, Erin M. Sweeney, an employee benefits attorney and of counsel with Miller & Chevalier in Washington, told Bloomberg BNA. What that challenge would look like will depend on what steps the DOL takes to delay or rescind the rule. The DOL delayed portions of the Obama administration's regulatory package that aimed to reduce the allegedly conflicted investment advice given to retirement savers until June 9. Other portions of the rule are delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency. As newly minted Secretary of Labor Alexander Acosta was sworn in, one big question was whether he would seek to push the rule's applicability date out further. Opponents of the rule, including the Financial Services Institute and the American Council of Life Insurers, as well as members of the House and Senate, called for further delay of the rule the week that Acosta was confirmed . Stakeholders on both sides of the issue have sought meetings with Acosta. Though there have been reports that the secretary aims to quash the rule, the DOL has thus far been mum on the matter. Heavy Lifting DOL-17-0281-K-000263 AO 836892 OSEC 000263 Delaying the rule again would be "an extremely heavy lift," but there are ways it can be done, Sweeney said. One option would be to simply pull the rule. If the DOL did this and didn't provide the public with a notice and comment period, it would likely spur a legal challenge under the APA. That challenge would take issue with a lack of notice and comment period, Sweeney said. Another route the agency could take would be to issue a proposed rule that would suspend or revoke the fiduciary rule. An action like that also could produce a challenge under the APA, Sweeney said. Groups have successfully challenged the suspension of regulations before. In the 1980s, several groups sued the Reagan administration's Environmental Protection Agency for delaying rules indefinitely, Sweeney said. Still, this isn't something that happens all the time and there is a question of how much merit a case like this would have, Edward A. Zelinsky, professor of law at the Benjamin N. Cardozo School of Law at Yeshiva University in New York, told Bloomberg BNA. Zelinksy said a lawsuit challenging a delay would have "very little chance of success" and ultimately this is something that will need to be decided "administratively." The DOL isn't a stranger to legal challenges on the fiduciary rule. Multiple industry groups and companies that oppose the rule have filed lawsuits challenging the rule from a variety of angles. Every federal judge who has ruled on these cases has upheld the rule in its entirety, handing losses to the Chamber of Commerce and the American Council of Life Insurers, Market Synergy Group, and the National Association for Fixed Annuities. Not Responsive DOL-17-0281-K-000264 AO 836892 OSEC 000264 Not Responsive DOL-17-0281-K-000265 AO 836892 OSEC 000265 Message From: Sent: To: CC: Subject: As requested ... From: Hazelton,Jennifer - OSEC Sent: Friday, May 19, 2017 12:14 PM To: Palmer,Wayne D - OSEC Subject: Re: Question re: Calls Yes will do On: .19 May 2017 17:52, "Palmer, Wayne D - OSEC" Jenmfer, 1 {b ){ 6) ! wrote: '-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·' Below is the list of recommended Fiduciary calls Molly drafted. Would you please ask RAA if he wants to do these? If he agrees, we would schedule calls for the afternoon/ evening on the night before the op-ed runs: 1. 2. 3. 4. 5. 6. 7. 8. 9. Leader McConnell Speaker Ryan Senator Alexander Senator Isakson Rep. Foxx Senator Blunt Rep. Hensarling Rep. Wagner Rep. Walberg (only if RAA wants to-since he's calling the Fin Serv Subcommittee Chair, too) Can occur later in the week: 10. Rep. Roe (only because he called) DOL-17-0281-K-000266 AO 836892 OSEC 000266 Message :::· :----~-~<: c-~,1}I!t~:\, l~\--~-~1i1i-~r--~:.: __ 09-PM-;-----------------------~-~~~~~-------------------------------. To: 5-g~J _____ : ( b) (6) ! ____ I Attachments:'-·-·o-pEd·-~-P-~i-~-;ipl~-~-oid-~~~~~~----·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- DOL-17-0281-K-000267 AO 836892 OSEC 000267 Message From: Sent: To: /}~~~-~~-~-i~~(~-~i{--~-?.9-t ______ i ( b) (6) I '-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-~·-·-·-·•.-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 5/20/2017 8:42:59 PM r·-~-~-~~?.~!~L _________________________________________ J~JJ~1.<6>tErf ___________________________ ___1 _________________________________________________ 1 '·-Fwd :-1te m -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·' Subject: Attachments: OpEd - Principles 03 ncg.docx Welcome home. Hope you are not too jet lagged. Attached are very minor suggestions. I included comment bubbles explaining the reason for any potential edits. Also happy to discuss. I have a graduation to attend at UVA tomorrow morning but will be available in the am till 9.30 before that and then after lunch as well as tonight. -Nick From: "Nick Geal e" [-·-·-·-·-·-·-·-·-·-(bf(6)-·-·-·-·-·-·-·-·-·1 Subject: Item Date: 20 May 2017 20:38 To: "Geal e, Nichol as C. - SOL" :-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·ib)(6f-·-·-·-·-·-·-·-·-·-·-·-·-·-·-i DOL-17-0281-K-000268 AO 836892 OSEC 000268 Message From: r--~!\~f(ira_:___: (b)(6) I L--·-·-·-·-·-·-·-·-·-·"T.:...-.:..-._·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·1 Sent: 5/21/2017 10:29:17 AM To: Attachments: l__________________________ (b)(6) -·-·-·-·-·-·-·-·-·-·-·-·-_! OpEd - Principles 04.docx DOL-17-0281-K-000269 AO 836892 OSEC 000269 Message From: Sent: To: Subject: Attachments: OpEd - Principles - Final.docx DOL-17-0281-K-000270 AO 836892 OSEC 000270 Message From: Sent: To: CC: !---~-~-~J~?.!.~_: ____ ! { '·-·5/ ;;j;-;1T1~ :41 :0 8 .AM-· b){6) b) (6) i i-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--:"-·-·-·-·-j =.9-~-~-~-:_ ____________________ J!?.}l6J ___________________ .) ··---~-~-:-~~t_°..~:--~~-~-~~~E:_r __ ( f':!_~(:_~1j~~~~~--~-~9.~--[L_ ___ i !--~-~~l~! __ :i ! [______________________ (__)( __) ·-·-·-·-·-·-·-·-·-·-·-L.---·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-; Subject: Attachments: RE: Near Fina l, to share w ith WSJ OpEd - Principles - Final.docx Revised: From: RA Acosta Sent: Monday, May 22, 2017 11:24 AM To: Hazelton,Jennifer - OSEC Subject: Near Final, to share with WSJ DOL-17-0281-K-000271 AO 836892 OSEC 000271 Message Taranto, James [___________________ (b)(SJ ·-·-·-·-·-·-·-·-·-· i 5/22/2017 3:59:52 PM From: Sent: To: Subject: r-:]~;j:~~CH rn Op-M(b)(6) _________________________ ! Secceta,y Acosta On Mon, May 22, 2017 at 3:58 PM, RA Acosta j 1.__ ________________ (b)(6) _______________ wrote: Your deputy has a nice way with words. Most look greaL Some, we need to fix however. Our folks will call you soon. Let's take our time and get it right, We don't need to be online by 5. From: Hazelton,Jennifer - OSEC Sent: Monday, May 22, 2017 3:32 PM To: RAAcosta Cc: Way, Elizabeth- EXECSEC; Conway, Molly E - OSEC;Geale, NicholasC. - SOL; Gardner, Janelle A - OSEC Subject: FW: ATTACHED:SecretaryAcosta Op-Ed Mr. Secretary, See the WS.l's proposed edits below - along with James' comments on further editing. Awaiting your decision on this. Best, Jennifer From: Taranto, James :____________________________ (b)(GJ·-·-·-·-·-·-·-·-·-·-·-·-·-·-j Sent: Monday, May 22, 2017 3:29 PM To: Hazelton,Jennifer - OSEC Subject: Re: ATTACHED:SecretaryAcosta Op-Ed OK, here you go. l'Vfydeputy did all the editing, after I instrncted him to tread lightly. If we've lost anything vital, there's room to add about 50 words. He put in ALL CAPS any changes that he thought might affect the substance. If you can get back to me by 4 p.m., we should be able to wrap it up in time to publish online by 5. By DOL-17-0281-K-000272 AO 836892 OSEC 000272 text President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow men and women. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modem world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modem world regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans-workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. LAST SUMivIER a federal judge held that "the rule is defective to its core" and BLOCKED ITS IlvIPLEMENTATION. Now the LABOR DEPARTMENT will engage in a new rule-making process to seek comment both on the scope of our authority and the wisdom of the rule. Another example is the Fiduciary Rule, WHICH WOULD MAKE IT HARDER FOR AMERICANS TO RECENE FINANCIAL ADVICE. Several courts have upheld this rule as consistent with the authority that Congress delegated TO THE LABOR DEPARTMENT. Nonetheless, the Fiduciary Rule as written does not appear to comport with PRESIDENT TRUMP'S approach. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's CRITICS, by contrast, say it would limit choice in investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that DOL-17-0281-K-000273 AO 836892 OSEC 000273 savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for delay. We have carefully considered the record in this case and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this rule cannot be postponed. Instead the LABOR DEPARUvIENT WILL seek public comment on how to revise the rule. Under the Obama administration, the Securities and Exchange Commission declined to PARTICIPATE in the rule-making process. Yet the SEC has critical expertise. I hope in this administration the commission will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Cutting the thicket, however, would leave Americans vulnerable in the long run. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is U.S. secretary oflabor. DOL-17-0281-K-000274 AO 836892 OSEC 00027 4 Message From: Sent: To: Taranto, James [___________________ (b)(SJ ·-·-·-·-·-·-·-·-·-· i 5/23/2017 12:01:53 PM c-~::~~::-;~:------------------J~H~llJnsr _______________ J ___________________ l Subject: Oh, and I go by James. On Tue, May 23, 2017 at 11 :28 AM, RA Acosta l____________________ __(b)(6)____________________ ___: wrote: James/ .l1m·? Wanted to circle back. Your deputy did a nice job. It reminded me of my appellate days, when the brief would come back marked up but better. May I ask his name/ email so I can pass along the regards'? Alex. From: Taranto, James[____________________________ (b)(S) ·-·-·-·-·-·-·-·-·-·-·-·-·-·: Sent: Monday, May 22, 2017 4:20 PM To: Hazelton,Jennifer - OSEC;RAAcosta Subject: here you go This incorporates all your edits; I made only a couple of style fixes (e.g., we write "Congress's," not "Congress"') in the reinserted graf. By President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. American workers and American families deserve good, safe jobs, and unnecessary impediments to job creation are a disservice to all working Americans. DOL-17-0281-K-000275 AO 836892 OSEC 000275 As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow men and women. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modern world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modern world regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans-workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. Last year a federal judge held that "the rule is defective to its core" and blocked its implementation. Now the Labor Department will engage in a new rulemaking process, proposing to rescind the rule. Another example of a controversial regulation is the Fiduciary Rule. Several courts have upheld this rule as consistent with Congress's delegated authority. Nonetheless, the Fiduciary Rule as presently written does not appear to comport with President Trump's approach. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's critics, by contrast, say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this Administration envisions. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for delay. We have carefully considered the record in this case, and the law, DOL-17-0281-K-000276 AO 836892 OSEC 000276 and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise. I hope in this administration the commission will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable in the long run. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is U.S. secretary of labor. DOL-17-0281-K-000277 AO 836892 OSEC 000277 Message From: Sent: To: Subject: Peterson, Kyle L___________________ (b)(SJ -·-·-·-·-·-·-·-·-·-: 8/10/2017 6:07:18 PM r·--~~-~~~t-a-~·1 ____________________________________________ {_ b){6)---------------------------------------------Re: here you go Sure. We're just clearing tonight's pages; I called a few minutes ago but will try again tomorrow . I'm at !_____________ ( b)( 6)-·-·-·-·-·-·-l On Thu, Aug 10, 201 7 at 2: 5 7 PM, RA Acosta c·-·-·-·-·-·-·-·-·-·-·-(bi°(sf-·-·-·-·-·-·-·-·-·-·-i wrote: Kyle, Could you give me a call when you get a chance. Entirely unrelated to WSJ or the topic of the Op Ed Thanks, Acosta :__________ .(b)(!il._________ i From: Taranto, James[____________________________ (b)(S) ·-·-·-·-·-·-·-·-·-·-·-·-·-·: Sent: Tuesday, May 23, 2017 11:52 AM To: RAAcosta Subject: RE: here you go l_______________________ (b)(6) ·-·-·-·-·-·-·-·-·-·-·-· i DOL-17-0281-K-000278 AO 836892 OSEC 000278 On May 23, 2017 11:28 AM, "RA Acostai ___________________ __{_b )(6) ·-·-·-·-·-·-·-·-·-.Jvrote: James/ .l1m·? Wanted to circle back. Your deputy did a nice job. It reminded me of my appellate days, when the brief would come back marked up but better. May I ask his name/ email so I can pass along the regards? Alex. From: Taranto, James[____________________________ (b)(S) ·-·-·-·-·-·-·-·-·-·-·-·-·-·: Sent: Monday, May 22, 2017 4:20 PM To: Hazelton,Jennifer - OSEC;RAAcosta Subject: here you go This incorporates all your edits; I made only a couple of style fixes (e.g., we write "Congress's," not "Congress"') in the reinserted graf. By President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. American workers and American families deserve good, safe jobs, and unnecessary impediments to job creation are a disservice to all working Americans. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow men and women. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. DOL-17-0281-K-000279 AO 836892 OSEC 000279 The rule of law is America's other great contribution to the modem world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modem world regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans-workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. Last year a federal judge held that "the rule is defective to its core" and blocked its implementation. Now the Labor Department will engage in a new rulemaking process, proposing to rescind the rule. Another example of a controversial regulation is the Fiduciary Rule. Several courts have upheld this rule as consistent with Congress's delegated authority. Nonetheless, the Fiduciary Rule as presently written does not appear to comport with President Trump's approach. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's critics, by contrast, say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this Administration envisions. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. I, 2018. Some have called for delay. We have carefully considered the record in this case, and the law, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise. I hope in this administration the commission will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rule of law has remained, even when DOL-17-0281-K-000280 AO 836892 OSEC 000280 Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable in the long run. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is U.S. secretary oflabor. DOL-17-0281-K-000281 AO 836892 OSEC 000281 Message From: Sent: c~~~~~~~~~~~~:~~~~1~R~~~~~~~~~~~~~~~~~~J ____________________________________________ J~)J~)__ _________________ J 5/22/2017 4:51:41 PM To: i ___ Taranto, Subject: ' RE: here you go Jam es L~--~--~--~--~--~--~--~--~J~i(~f ~--~--~--~--~--~--~--~--~J ~: )~~;sta !__________________________________________ (b)( 6) ___________________ i·-·-·-·-·-·-·-·-·-·-·-·-·-· i James.. Secretary Acosta wanted to make one last edit. It's below in red" OK? From: Taranto, James[____________________________ (b)(S) ·-·-·-·-·-·-·-·-·-·-·-·-·-·! Sent: Monday, May 22, 2017 4:20 PM To: Hazelton,Jennifer - OSEC;RAAcosta Subject: here you go This incorporates all your edits; I made only a couple of style fixes (e.g., we write "Congress's," not "Congress"') in the reinserted graf. By President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. American workers and American families deserve good, safe jobs, and unnecessary impediments to job creation are a disservice to all working Americans. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow men and women. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modem world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modem world regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans-workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. Last year a federal judge held that "the rule is defective to its core" and blocked its implementation. Now the Labor Department will engage in a new rulemaking process, proposing to rescind the rule. DOL-17-0281-K-000282 AO 836892 OSEC 000282 Another example of a controversial regulation is the Fiduciary Rule. Several courts have upheld this rule as consistent with Congress's delegated authority. Nonetheless, the Fiduciary Rule as presently written does not appear to comport with President Trump's approach. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's critics, by contrast, say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this Administration envisions. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for delay. We have carefully considered the record in this case, and the law, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise. I hope in this administration the commission will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to future regulatory whim. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is U.S. secretary of labor. DOL-17-0281-K-000283 AO 836892 OSEC 000283 Message From: Sent: To: CC: Subject: Morning News Clips: 5/23/17 5/23 Reuters U.S. Labor Secretary says fiduciary rule to take effect on June 9 with no more delays: Wall Street Journal Click Here 5/22 Wall Street Journal 'Fiduciary' Rule to Take Effect June 9 With No Further Delay, Labor Secretary Says Click Here 5/22 Market Watch Fiduciary rule to take effect June 9, Labor secretary says Click Here 5/22 Investment News Acosta declines to extend delay of DOL fiduciary rule Click Here 5/22 Insurance News Net Acosta Declines to Delay DOL Fiduciary Rule Click Here 5/23 Nasdaq Its Official-DOL Says No More Fiduciary Rule Delays Click Here 5/22 Think Advisor DOL Will Not Delay June 9 Fiduciary Rule Compliance Date: Acosta Click Here 5/23 Washington Post Labor Department will avoid further delay of retirement savings rule Click Here 5/22 ABA Banking Journal Acosta: No Additional Delay for Fiduciary Rule Click Here 5/22 401K Specialist DOL Issues Fiduciary Rule Enforcement Delay Click Here 5/22 Bloomberg Acosta Says Parts of Fiduciary Rule Will Be Effective June 9 Click Here -· ·-·-·-·-·-·-·-·-·-·-·-· ' i I ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-. Not Responsive 'i I i--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i DOL-17-0281-K-000284 AO 836892 OSEC 000284 ■ Not Res pons 1ve -·-·-·-·-·-·-·-·-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ' ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 1 U.S. Labor Secretary says fiduciary rule to take effect on June 9 with no more delays: Wall Street Journal Reuters Kanishka Singh 5/23 The "fiduciary rule" aimed at preventing brokers from recommending inappropriate retirement investments, will take effect on June 9 with no further delays, U.S. Labor Secretary Alexander Acosta said on Monday in an opinion piece in the Wall Street Journal. Acosta said in his opinion piece that there is "no principled legal basis to change the June 9 date while we seek public input." on. wsj.com/2q57jwk Calling the fiduciary rule a "controversial regulation", Acosta wrote that while courts have upheld the rule as consistent with Congress' delegated authority, the rule may not align with Trump's "deregulatory goals". Acosta added the rule will go into partial effect on June 9 and full implementation will go into effect on Jan. 1 next year. The Labor Department's fiduciary rule requires firms to eliminate any conflict of interest, such as certain sales incentives for brokers who are advising clients on their retirement savings. Some Democratic Senators on Friday raised concerns over the possibility that the Trump administration will permanently shelve the fiduciary rule. Heavily criticized by Wall Street and Republicans for potentially raising the cost of investment advice, the rule has faced a rocky time becoming effective, with Trump last month delaying its enactment date, originally April 10, for 60 days. Trump has also ordered a review of the rule. Article 2 'Fiduciary' Rule to Take Effect June 9 With No Further Delay, Labor Secretary Says Wall Street Journal Lisa Beilfuss 5/22 The retirement-savings regulation known as the fiduciary rule will take effect June 9 without further delay, Labor Department Secretary Alexander Acosta said Monday. In an opinion piece for The Wall Street Journal, the new Labor Department chief said "respect for the rule of law" precludes a further delay in next month's applicability date, which had been postponed from April 10 after President Donald Trump directed the department to re-evaluate the Obama-era regulation meant to protect retirement savings from conflicted investment advice. "We have carefully considered the record in this case," Mr. Acosta wrote, "and have found no principled legal basis to change the June 9 date while we seek public input." He said "respect for the rule of law leads us to the conclusion that this date cannot be postponed." DOL-17-0281-K-000285 AO 836892 OSEC 000285 The rule takes only partial effect on June 9. Brokers and insurance agents don't need to comply with certain parts of the regulation until Jan. 1, 2018. Mr. Acosta's decision against further delaying the regulation's applicability date is a setback for critics in the financialservices industry. Leaving June 9 in place ensures that firms and advisers will need to be at least partially compliant and communicate certain changes to clients, effectively making the rule harder to reverse down the road. Still, Mr. Acosta left the door open for repeal or revision after the Labor Department completes its economic review, a process that includes taking public comment. "Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals," he said. The establishment of the rule came after a long fight between the financial industry and the Obama administration. The Obama administration said conflicted financial advice costs American families $17 billion a year and pushes down annual returns on retirement savings by a percentage point. Critics, including many financial-industry leaders, have said those figures are inflated and have contended that the rule would punish smaller savers in the form of less access to financial advice and heftier fees for those who trade infrequently. Article 3 Fiduciary rule to take effect June 9, Labor secretary says Martket Watch Victor Reklaitis 5/23 The fiduciary rule will take effect June 9 without any more delays, said Labor Department Secretary Alexander Acosta in a Wall Street Journal opinion piece published late Monday. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote, as he acknowledged that the rule "as written may not align with President Trump's deregulatory goals." The fiduciary rule is a highly contested piece of legislation produced during President Obama's time in office. It's focused on mitigating conflicts of interests that may arise in financial advisers' investment recommendations for retirement accounts. The Department of Labor announced in March that it would delay the rule's implementation -- originally set for April 10 -- until June 9. Article 4 Acosta declines to extend delay of DOL fiduciary rule Investment News Mark Schoeff Jr. 5/22 Labor Secretary Alexander Acosta confirmed Monday night that the agency's fiduciary rule will become applicable on June 9. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Mr Acosta wrote in a Wall Street Journal oped that was posted Monday night. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. His decision is a victory for supporters of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. The rule's implementation has been delayed for 60 days - from April 10 until June 9 while the DOL reassesses the regulation under a directive from President Donald J. Trump that could lead to its modification or repeal. The DOL said that two provisions - one expanding the definition of who is a fiduciary and another establishing impartial DOL-17-0281-K-000286 AO 836892 OSEC 000286 conduct standards - would become applicable when the delay ends on June 9. The agency said that it would continue its review until Jan. 1, the final implementation date for the rule. Industry opponents pushed Mr. Acosta to extend the delay, arguing that the whole rule should be put on hold while the agency carries out Mr. Trump's order. Supporters threatened to sue the agency if it pushed back the rule beyond June 9 in violation of rule making parameters set out in the APA. In guidance Monday night, the agency said that it would not enforce the rule during the delay. "During the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions," the Field Assistance Bulletin states. In addition to Mr. Acosta's oped and bulletin, the agency released on a new set of frequently asked questions related to the transition period from June 9 to January 1, 2018. Article 5 Acosta Declines to Delay DOL Fiduciary Rule Insurance News Net John Hilton 5/22 Labor Secretary Alexander Acosta announced Monday night that he will not delay the controversial fiduciary rule any further. Writing in a Wall Street Journal opinion piece, Acosta said that "we have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input." "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," the secretary wrote. Acosta graduated Harvard Law School and spent his entire career building an impressive legal resume, which led some analysts to predict he would act cautiously. While the DOL will continue to study the rule and can change some aspects of the second part of the phase in, allowing the June 9 date to stand means the fiduciary rule is likely here to stay. The decision is a win for the Obama administration and consumer groups, which pushed for the fiduciary rule for virtually all eight years of the former president's term. New President Donald J. Trump ordered a delay in a Feb. 3 memo, and the DOL published a 60-delay, which pushed the applicability date from April 10 to June 9. But Acosta wasn't sworn into office until late April, which made it hard for him to influence the process. Come June 9, agents and advisors must fulfill three main criteria when selling products using retirement dollars: act as a fiduciary, accept only reasonable compensation, and make no "materially misleading statements." What constitutes "reasonable compensation" is the great unknown. The remainder of the fiduciary rule will take effect Jan. 1, 2018. It mandates significant disclosures and a contract signed by client and agent/advisor. Check back with lnsuranceNewsNet for more on this issue in the days ahead. Article 6 Its Official-DOL Says No More Fiduciary Rule Delays Nasdaq DOL-17-0281-K-000287 AO 836892 OSEC 000287 Duncan MacDonald-Korth 5/23 Advisors across the US will likely be dismayed today as hope over the DOL's new chief appears to be lost. New DOL head Acosta, who had not previously spoken publicly about the rule, announced yesterday that there would be no more delays of the fiduciary rule before the June 9th applicability date. Acosta said "respect for the rule of law" precluded further delay of the rule. Acosta summarized the situation saying "We have carefully considered the record in this case ... and have found no principled legal basis to change the June 9 date while we seek public input". Despite this, Acosta did leave the door open to a repeal of the rule once it had been applied, saying it may not "align with President Trump's deregulatory goals". FINSUM : So it appears an internal move from the DOL to delay the rule further has no been ruled out. It will come down to Trump, Congress, or the courts to stop it. Article 7 DOL Will Not Delay June 9 Fiduciary Rule Compliance Date: Acosta Think Advisor Melanie Waddell 5/22 Labor Secretary Alexander Acosta said Monday that Labor will not delay the fiduciary rule's June 9 compliance date while the department seeks public input on the rule as laid out in President Donald Trump's Feb. 3 memorandum. "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so," Acosta said in a Monday op-ed in The Wall Street Journal. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." Under the Obama administration, Acosta continued, "the Securities and Exchange Commission declined to move forward in rulemaking. Yet the SEChas critical expertise in this area. I hope in this administration the SECwill be a full participant." The same day, the Labor Department issued Field Assistance Bulletin No. 2017-02 instituting a temporary enforcement policy, which states that Labor "is actively engaging in a careful analysis" of the issues raised in the president's memorandum. Also released by the Department Monday is frequently-asked-questions guidance regarding the rule's transition period. "It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty rule and [prohibited transaction exemptions]," the field assistance bulletin states. The department also intends to issue a request for information (RFI) "in the near future seeking additional public input on specific ideas for possible new exemptions or regulatory changes based on recent public comments and market developments." Labor states that it is "also aware that after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest." The RFI will specifically ask for public comment on whether it is likely to take more time to implement these new approaches than what the department envisioned when it set Jan. 1, 2018, as the applicability date for full compliance DOL-17-0281-K-000288 AO 836892 OSEC 000288 with all of the exemptions' conditions, and, if so, whether an additional delay of that date would reduce burdens on financial services providers and benefit retirement investors by allowing for a smoother implementation of those market changes. Said Acosta in his op-ed: "From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to regulatory whim." The Labor Department, he continued, "will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong." Article 8 Labor Department will avoid further delay of retirement savings rule Washington Post Jannelle Marte 5/23 A Labor Department rule that would set higher standards for the advice brokers give to retirement savers will go into effect June 9 without further delay, Labor Secretary Alexander Acosta said Monday. The regulation, which is known as the fiduciary rule, was pushed back after President Trump signed a memo in February asking the department to re-evaluate the rule. It was originally supposed to be implemented April 10. In an op-ed for the Wall Street Journal that was published Monday night, Acosta said the department "found no principled legal basis" for delaying the rule further while it seeks feedback from the public about the rule and its potential impact on retirement savers. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta wrote. The head of the Labor Department added that he will comply with the Administrative Procedures Act, which requires agencies to send out public notices and seek input before they write or change rules. The department will seek feedback until Jan. 1. The fiduciary rule would require brokers working with retirement savers to put their clients' interests ahead of their own. The regulation, which was more than six years in the making, is meant to help cut down on conflicts of interest in retirement advice. Supporters of the rule say it could make it more difficult for brokers to recommend investments that could lead to a bigger payout for them, even when there may be another product that could be a better fit for the saver. The Labor Department estimated under the Obama administration that such questionable advice is costing retirement savers about $17 billion a year. However, some financial firms and industry groups say the approach may have the unintended consequence of limiting savers' options if some brokers decide to eliminate some investments they fear will face more scrutiny under the rule. Parts of the rule will be implemented June 9. But in guidance published Monday, the Labor Department said it will not enforce the regulation until Jan. 1, 2018. Many financial firms have made already made adjustments to help them comply with the new standard. Over the past several months, brokerage firms have lowered fees, designed new mutual fund share classes with simpler fee structures and eliminated some commission-based retirement accounts. DOL-17-0281-K-000289 AO 836892 OSEC 000289 The Labor Department said in the written guidance that it is still conducting the review requested by the president. Acosta also hinted that the rule could still face changes down the line. "The Labor Department will roll back regulations that harm American workers and families," he wrote. Article 9 Acosta: No Additional Delay for Fiduciary Rule ABA Banking Journal Staff report 5/22 Labor Secretary Alexander Acosta today announced that the Department of Labor will not delay the June 9 effective date for the fiduciary rule, which greatly expanded the definition of who counts as a "fiduciary" under the Employee Retirement Income Security Act and the Internal Revenue Code. Acosta wrote in a Wall Street Journal op-ed posted this evening that he had reached the conclusion that the Administrative Procedures Act, which governs federal rulemaking, would not allow a further delay. "We ...have found no principled legal basis to change the June 9 date while we seek public input," he wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." While the new definition takes effect June 9, additional conditions - such as specific disclosures and representations - are not required until Jan. 1, 2018. Dal issued a bulletin on its "temporary enforcement policy" of phased implementation. "The department has repeatedly said that its general approach to implementation will be marked by an emphasis on assisting (rather than citing violations and imposing penalties on) plans, plan fiduciaries, financial institutions, and others who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule and exemptions," Dal said. "Accordingly, during the phased implementation period ending on Jan. 1, 2018, the department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." Although Acosta declined to issue a further delay, he said that Dal will continue its review of the final rule pursuant to an executive action by President Trump. "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so," he wrote. "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." The American Bankers Association has strongly advocated for an additional delay and revisions to the rule to facilitate compliance and ensure it does not negatively affect the services available to bank customers. The association expressed disappointment that Dal decided to pursue implementation of a rule that it has said remains "fundamentally flawed and unworkable in critical areas." For more information, contact ABA's Tim Keehan. Article 10 DOL Issues Fiduciary Rule Enforcement Delay 401K Specialist John Sullivan 5/22 On the same day Labor Secretary Acosta said there's no legal basis for delaying the fiduciary rule's implementation date of June 9, the Department of Labor said it will not actually enforce the fiduciary rule until January 1, 2018, as long as fiduciaries "are acting in good faith." The announcement was billed as "relief" and came in the form of a Field Assistance Bulletin on Monday. Ii ...during the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." DOL-17-0281-K-000290 AO 836892 OSEC 000290 Tellingly, the department left itself open for future flexibility on the rule, noting, "to the extent that circumstances surrounding the applicability date of the fiduciary duty rule and exemptions give rise to the need for other temporary relief, EBSAwill consider taking such additional steps as necessary." The DOL said it is "actively engaging in a careful analysis of the issues raised in the President's Memorandum. It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty rule and PTEs." The Department also intends to issue a Request for Information (RFI) in the near future seeking additional public input on specific ideas for possible new exemptions or regulatory changes based on recent public comments and market developments. "The Department is also aware that after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest," it added before continuing in a very long run-on sentence: "The RFI will specifically ask for public comment on whether it is likely to take more time to implement these new approaches than what the Department envisioned when it set January 1, 2018, as the applicability date for full compliance with all of the exemptions' conditions, and, if so, whether an additional delay in the January 1, 2018 applicability date would reduce burdens on financial services providers and benefit retirement investors by allowing for a smoother implementation of those market changes." Although the department has a "statutory responsibility and broad authority to investigate or audit employee benefit plans and plan fiduciaries to ensure compliance with the law," compliance assistance for plan fiduciaries and other service providers is also a high priority for the Department," it said by way of explanation. "The Department has repeatedly said that its general approach to implementation will be marked by an emphasis on assisting (rather than citing violations and imposing penalties on) plans, plan fiduciaries, financial institutions, and others who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule and exemptions ." Consistent with that approach, the department has determined that temporary enforcement relief is appropriate and in the interest of plans, plan fiduciaries, plan participants and beneficiaries, IRAs, and IRA owners. Article 11 Acosta Says Parts of Fiduciary Rule Will Be Effective June 9 Bloomberg Kristen Ricaurte Knebel 5/23 Secretary of Labor Alexander Acosta won't put the brakes on the portions of the DOL's fiduciary rule that are set to take effect in a matter of weeks, he announced this evening in an op-ed in the Wall Street Journal. The announcement dashes the hopes of many in the financial services industry who wanted a more substantial delay. Acosta said after considering the record and the requirements of the Administrative Procedure Act, there is "no principled legal basis to change the June 9 date" for the definition of the term fiduciary and the impartial conduct standards. The DOL delayed portions of the Obama administration's regulatory package that aimed to reduce the allegedly conflicted investment advice given to retirement savers until June 9. Other portions of the rule are delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency. Acosta hinted in the op-ed piece that changes to portions of the rule that are delayed until at least Jan. 1, 2018, may see DOL-17-0281-K-000291 AO 836892 OSEC 000291 changes after a notice and comment period. "Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," Acosta said. The DOL also announced this evening a temporary enforcement policy for the rule and issued a set of frequently asked questions on the rule's transition period. Not Responsive DOL-17-0281-K-000292 AO 836892 OSEC 000292 Not Responsive DOL-17-0281-K-000293 AO 836892 OSEC 000293 Not Responsive DOL-17-0281-K-000294 AO 836892 OSEC 000294 Not Responsive DOL-17-0281-K-000295 AO 836892 OSEC 000295 Not Responsive DOL-17-0281-K-000296 AO 836892 OSEC 000296 Not Responsive DOL-17-0281-K-000297 AO 836892 OSEC 000297 Not Responsive DOL-17-0281-K-000298 AO 836892 OSEC 000298 Not Responsive DOL-17-0281-K-000299 AO 836892 OSEC 000299 Tim Lineberger Department of Labor L__________ (~J1!5J __________ _: DOL-17-0281-K-000300 AO 836892 OSEC 000300 Message From: r-~;~~-~~"~(bI<-~Y-'-Q~_,_C:L\ _______________________ _(~lt~t _______________ J Sent: To: L RA Acosta !-~-----·-·-·-·-·-·-·-·--·-'-·-···-· ·--·-·-···-·-·-·-·-·-·-·-'-·-·-·--·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·; :-·-·-·-·ib°ff i5f____ !__: Subject: ( b) (6) ! ··-·-·-·-·-·-·-·-·-·-·-·-·-··-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·J Re: Morning Clips 5/23 I believe all 3 Bloomberg stories. I'll double check for any others. On: 23 May 2017 08:30, 11 RA Acosta 11 [·-·-·-·-·-·-·-·-·-·-·1bfisi·-·-·-·-·-·-·-·-·-·-1 wrote: Which is the one behind the pay wall"? From: Lineberger,Timothy L - OSEC Sent: Tuesday, May 23, 2017 8:30 AM To: RAAcosta Subject: Re: Morning Clips 5/23 Multiple Bna paywall stories below. Does this have the story you were looking for? On: 23 May 2017 07:23, "Lineberger, Timothy L - OSEC" [~~~~~~~~~~~~~~~~~~=~~~~~~~~~~~~~~{~j_(~C~~~~~-~~~~~~~~~~~~~~~=~~~~~~J wrote: Morning News Clips: 5/23/17 5/23 Reuters U.S. Labor Secretary says fiduciary rule to take effect on June 9 with no more delays: Wall Street Journal Click Here 5/22 Wall Street Journal 'Fiduciary' Rule to Take Effect June 9 With No Further Delay, Labor Secretary Says Click Here 5/22 Market Watch Fiduciary rule to take effect June 9, Labor secretary says Click Here 5/22 Investment News Acosta declines to extend delay of DOL fiduciary rule Click Here 5/22 Insurance News Net Acosta Declines to Delay DOL Fiduciary Rule Click Here 5/23 Nasdaq Its Official-DOL Says No More Fiduciary Rule Delays Click Here 5/22 Think Advisor DOL Will Not Delay June 9 Fiduciary Rule Compliance Date: Acosta Click Here 5/23 Washington Post Labor Department will avoid further delay of retirement savings rule Click Here 5/22 ABA Banking Journal Acosta: No Additional Delay for Fiduciary Rule Click Here DOL-17-0281-K-000301 AO 836892 OSEC 000301 5/22 401K Specialist DOL Issues Fiduciary Rule Enforcement Delay Click Here 5/22 Bloomberg Acosta Says Parts of Fiduciary Rule Will Be Effective June 9 Click Here . ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ■ Not Res po ns 1ve Article 1 U.S. Labor Secretary says fiduciary rule to take effect on June 9 with no more delays: Wall Street Journal Reuters Kanishka Singh 5/23 The "fiduciary rule" aimed at preventing brokers from recommending inappropriate retirement investments, will take effect on June 9 with no further delays, U.S. Labor Secretary Alexander Acosta said on Monday in an opinion piece in the Wall Street Journal. Acosta said in his opinion piece that there is "no principled legal basis to change the June 9 date while we seek public input." on. wsj.com/2q57jwk Calling the fiduciary rule a "controversial regulation", Acosta wrote that while courts have upheld the rule as consistent with Congress' delegated authority, the rule may not align with Trump's "deregulatory goals". Acosta added the rule will go into partial effect on June 9 and full implementation will go into effect on Jan. 1 next year. The Labor Department's fiduciary rule requires firms to eliminate any conflict of interest, such as certain sales incentives for brokers who are advising clients on their retirement savings. Some Democratic Senators on Friday raised concerns over the possibility that the Trump administration will permanently shelve the fiduciary rule. Heavily criticized by Wall Street and Republicans for potentially raising the cost of investment advice, the rule has faced a rocky time becoming effective, with Trump last month delaying its enactment date, originally April 10, for 60 days. Trump has also ordered a review of the rule. Article 2 'Fiduciary' Rule to Take Effect June 9 With No Further Delay, Labor Secretary Says Wall Street Journal Lisa Beilfuss 5/22 The retirement-savings regulation known as the fiduciary rule will take effect June 9 without further delay, Labor Department Secretary Alexander Acosta said Monday. In an opinion piece for The Wall Street Journal, the new Labor Department chief said "respect for the rule of law" DOL-17-0281-K-000302 AO 836892 OSEC 000302 precludes a further delay in next month's applicability date, which had been postponed from April 10 after President Donald Trump directed the department to re-evaluate the Obama-era regulation meant to protect retirement savings from conflicted investment advice. "We have carefully considered the record in this case," Mr. Acosta wrote, "and have found no principled legal basis to change the June 9 date while we seek public input." He said "respect for the rule of law leads us to the conclusion that this date cannot be postponed." The rule takes only partial effect on June 9. Brokers and insurance agents don't need to comply with certain parts of the regulation until Jan. 1, 2018. Mr. Acosta's decision against further delaying the regulation's applicability date is a setback for critics in the financialservices industry. Leaving June 9 in place ensures that firms and advisers will need to be at least partially compliant and communicate certain changes to clients, effectively making the rule harder to reverse down the road. Still, Mr. Acosta left the door open for repeal or revision after the Labor Department completes its economic review, a process that includes taking public comment. "Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals," he said. The establishment of the rule came after a long fight between the financial industry and the Obama administration. The Obama administration said conflicted financial advice costs American families $17 billion a year and pushes down annual returns on retirement savings by a percentage point. Critics, including many financial-industry leaders, have said those figures are inflated and have contended that the rule would punish smaller savers in the form of less access to financial advice and heftier fees for those who trade infrequently. Article 3 Fiduciary rule to take effect June 9, Labor secretary says Martket Watch Victor Reklaitis 5/23 The fiduciary rule will take effect June 9 without any more delays, said Labor Department Secretary Alexander Acosta in a Wall Street Journal opinion piece published late Monday. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote, as he acknowledged that the rule "as written may not align with President Trump's deregulatory goals." The fiduciary rule is a highly contested piece of legislation produced during President Obama's time in office. It's focused on mitigating conflicts of interests that may arise in financial advisers' investment recommendations for retirement accounts. The Department of Labor announced in March that it would delay the rule's implementation -- originally set for April 10 -- until June 9. Article 4 Acosta declines to extend delay of DOL fiduciary rule Investment News Mark Schoeff Jr. 5/22 Labor Secretary Alexander Acosta confirmed Monday night that the agency's fiduciary rule will become applicable on June 9. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Mr Acosta wrote in a Wall Street Journal oped that was posted Monday night. "Respect for the rule of law leads us to the conclusion that this date DOL-17-0281-K-000303 AO 836892 OSEC 000303 cannot be postponed. His decision is a victory for supporters of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. The rule's implementation has been delayed for 60 days - from April 10 until June 9 while the DOL reassesses the regulation under a directive from President Donald J. Trump that could lead to its modification or repeal. The DOL said that two provisions - one expanding the definition of who is a fiduciary and another establishing impartial conduct standards - would become applicable when the delay ends on June 9. The agency said that it would continue its review until Jan. 1, the final implementation date for the rule. Industry opponents pushed Mr. Acosta to extend the delay, arguing that the whole rule should be put on hold while the agency carries out Mr. Trump's order. Supporters threatened to sue the agency if it pushed back the rule beyond June 9 in violation of rule making parameters set out in the APA. In guidance Monday night, the agency said that it would not enforce the rule during the delay. "During the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions," the Field Assistance Bulletin states. In addition to Mr. Acosta's oped and bulletin, the agency released on a new set of frequently asked questions related to the transition period from June 9 to January 1, 2018. Article 5 Acosta Declines to Delay DOL Fiduciary Rule Insurance News Net John Hilton 5/22 Labor Secretary Alexander Acosta announced Monday night that he will not delay the controversial fiduciary rule any further. Writing in a Wall Street Journal opinion piece, Acosta said that "we have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input." "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," the secretary wrote. Acosta graduated Harvard Law School and spent his entire career building an impressive legal resume, which led some analysts to predict he would act cautiously. While the DOL will continue to study the rule and can change some aspects of the second part of the phase in, allowing the June 9 date to stand means the fiduciary rule is likely here to stay. The decision is a win for the Obama administration and consumer groups, which pushed for the fiduciary rule for virtually all eight years of the former president's term. New President Donald J. Trump ordered a delay in a Feb. 3 memo, and the DOL published a 60-delay, which pushed the applicability date from April 10 to June 9. But Acosta wasn't sworn into office until late April, which made it hard for him to influence the process. Come June 9, agents and advisors must fulfill three main criteria when selling products using retirement dollars: act as a fiduciary, accept only reasonable compensation, and make no "materially misleading statements." DOL-17-0281-K-000304 AO 836892 OSEC 000304 What constitutes "reasonable compensation" is the great unknown. The remainder of the fiduciary rule will take effect Jan. 1, 2018. It mandates significant disclosures and a contract signed by client and agent/advisor. Check back with lnsuranceNewsNet for more on this issue in the days ahead. Article 6 Its Official-DOL Says No More Fiduciary Rule Delays Nasdaq Duncan MacDonald-Korth 5/23 Advisors across the US will likely be dismayed today as hope over the DOL's new chief appears to be lost. New DOL head Acosta, who had not previously spoken publicly about the rule, announced yesterday that there would be no more delays of the fiduciary rule before the June 9th applicability date. Acosta said "respect for the rule of law" precluded further delay of the rule. Acosta summarized the situation saying "We have carefully considered the record in this case ... and have found no principled legal basis to change the June 9 date while we seek public input". Despite this, Acosta did leave the door open to a repeal of the rule once it had been applied, saying it may not "align with President Trump's deregulatory goals". FINSUM : So it appears an internal move from the DOL to delay the rule further has no been ruled out. It will come down to Trump, Congress, or the courts to stop it. Article 7 DOL Will Not Delay June 9 Fiduciary Rule Com~liance Date: Acosta Think Advisor Melanie Waddell 5/22 Labor Secretary Alexander Acosta said Monday that Labor will not delay the fiduciary rule's June 9 compliance date while the department seeks public input on the rule as laid out in President Donald Trump's Feb. 3 memorandum. "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so," Acosta said in a Monday op -ed in The Wall Street Journal. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." Under the Obama administration, Acosta continued, "the Securities and Exchange Commission declined to move forward in rulemaking. Yet the SEChas critical expertise in this area. I hope in this administration the SECwill be a full participant." The same day, the Labor Department issued Field Assistance Bulletin No. 2017-02 instituting a temporary enforcement policy, which states that Labor "is actively engaging in a careful analysis" of the issues raised in the president's memorandum. Also released by the Department Monday is frequently-asked-questions guidance regarding the rule's transition period. "It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty rule and [prohibited transaction exemptions]," the field assistance bulletin states. The department also intends to issue a request for information (RFI) "in the near future seeking additional public input DOL-17-0281-K-000305 AO 836892 OSEC 000305 on specific ideas for possible new exemptions or regulatory changes based on recent public comments and market developments." Labor states that it is "also aware that after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest." The RFI will specifically ask for public comment on whether it is likely to take more time to implement these new approaches than what the department envisioned when it set Jan. 1, 2018, as the applicability date for full compliance with all of the exemptions' conditions, and, if so, whether an additional delay of that date would reduce burdens on financial services providers and benefit retirement investors by allowing for a smoother implementation of those market changes. Said Acosta in his op-ed: "From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to regulatory whim." The Labor Department, he continued, "will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong." Article 8 Labor Department will avoid further delay of retirement savings rule Washington Post Jannelle Marte 5/23 A Labor Department rule that would set higher standards for the advice brokers give to retirement savers will go into effect June 9 without further delay, Labor Secretary Alexander Acosta said Monday. The regulation, which is known as the fiduciary rule, was pushed back after President Trump signed a memo in February asking the department to re-evaluate the rule. It was originally supposed to be implemented April 10. In an op-ed for the Wall Street Journal that was published Monday night, Acosta said the department "found no principled legal basis" for delaying the rule further while it seeks feedback from the public about the rule and its potential impact on retirement savers. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta wrote. The head of the Labor Department added that he will comply with the Administrative Procedures Act, which requires agencies to send out public notices and seek input before they write or change rules. The department will seek feedback until Jan. 1. The fiduciary rule would require brokers working with retirement savers to put their clients' interests ahead of their own. The regulation, which was more than six years in the making, is meant to help cut down on conflicts of interest in retirement advice. Supporters of the rule say it could make it more difficult for brokers to recommend investments that could lead to a bigger payout for them, even when there may be another product that could be a better fit for the saver. The Labor Department estimated under the Obama administration that such questionable advice is costing retirement savers about $17 billion a year. However, some financial firms and industry groups say the approach may have the unintended consequence of limiting DOL-17-0281-K-000306 AO 836892 OSEC 000306 savers' options if some brokers decide to eliminate some investments they fear will face more scrutiny under the rule. Parts of the rule will be implemented June 9. But in guidance published Monday, the Labor Department said it will not enforce the regulation until Jan. 1, 2018. Many financial firms have made already made adjustments to help them comply with the new standard. Over the past several months, brokerage firms have lowered fees, designed new mutual fund share classes with simpler fee structures and eliminated some commission-based retirement accounts. The Labor Department said in the written guidance that it is still conducting the review requested by the president. Acosta also hinted that the rule could still face changes down the line. "The Labor Department will roll back regulations that harm American workers and families," he wrote. Article 9 Acosta: No Additional Delay for Fiduciary Rule ABA Banking Journal Staff report 5/22 Labor Secretary Alexander Acosta today announced that the Department of Labor will not delay the June 9 effective date for the fiduciary rule, which greatly expanded the definition of who counts as a "fiduciary" under the Employee Retirement Income Security Act and the Internal Revenue Code. Acosta wrote in a Wall Street Journal op-ed posted this evening that he had reached the conclusion that the Administrative Procedures Act, which governs federal rulemaking, would not allow a further delay. "We ...have found no principled legal basis to change the June 9 date while we seek public input," he wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." While the new definition takes effect June 9, additional conditions - such as specific disclosures and representations - are not required until Jan. 1, 2018. DoL issued a bulletin on its "temporary enforcement policy" of phased implementation. "The department has repeatedly said that its general approach to implementation will be marked by an emphasis on assisting (rather than citing violations and imposing penalties on) plans, plan fiduciaries, financial institutions, and others who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule and exemptions," DoL said. "Accordingly, during the phased implementation period ending on Jan. 1, 2018, the department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." Although Acosta declined to issue a further delay, he said that DoL will continue its review of the final rule pursuant to an executive action by President Trump. "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so," he wrote. "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." The American Bankers Association has strongly advocated for an additional delay and revisions to the rule to facilitate compliance and ensure it does not negatively affect the services available to bank customers. The association expressed disappointment that DoL decided to pursue implementation of a rule that it has said remains "fundamentally flawed and unworkable in critical areas." For more information, contact ABA's Tim Keehan. Article 10 DOL Issues Fiduciary Rule Enforcement Delay 401K Specialist John Sullivan 5/22 On the same day Labor Secretary Acosta said there's no legal basis for delaying the fiduciary rule's implementation date DOL-17-0281-K-000307 AO 836892 OSEC 000307 of June 9, the Department of Labor said it will not actually enforce the fiduciary rule until January 1, 2018, as long as fiduciaries "are acting in good faith." The announcement was billed as "relief" and came in the form of a Field Assistance Bulletin on Monday. " ...during the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." Tellingly, the department left itself open for future flexibility on the rule, noting, "to the extent that circumstances surrounding the applicability date of the fiduciary duty rule and exemptions give rise to the need for other temporary relief, EBSAwill consider taking such additional steps as necessary." The DOL said it is "actively engaging in a careful analysis of the issues raised in the President's Memorandum. It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty rule and PTEs." The Department also intends to issue a Request for Information (RFI) in the near future seeking additional public input on specific ideas for possible new exemptions or regulatory changes based on recent public comments and market developments. "The Department is also aware that after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest," it added before continuing in a very long run-on sentence: "The RFI will specifically ask for public comment on whether it is likely to take more time to implement these new approaches than what the Department envisioned when it set January 1, 2018, as the applicability date for full compliance with all of the exemptions' conditions, and, if so, whether an additional delay in the January 1, 2018 applicability date would reduce burdens on financial services providers and benefit retirement investors by allowing for a smoother implementation of those market changes." Although the department has a "statutory responsibility and broad authority to investigate or audit employee benefit plans and plan fiduciaries to ensure compliance with the law," compliance assistance for plan fiduciaries and other service providers is also a high priority for the Department," it said by way of explanation. "The Department has repeatedly said that its general approach to implementation will be marked by an emphasis on assisting (rather than citing violations and imposing penalties on) plans, plan fiduciaries, financial institutions, and others who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule and exemptions." Consistent with that approach, the department has determined that temporary enforcement relief is appropriate and in the interest of plans, plan fiduciaries, plan participants and beneficiaries, IRAs, and IRA owners. Article 11 Acosta Says Parts of Fiduciary Rule Will Be Effective June 9 Bloomberg Kristen Ricaurte Knebel 5/23 Secretary of Labor Alexander Acosta won't put the brakes on the portions of the DOL's fiduciary rule that are set to take effect in a matter of weeks, he announced this evening in an op-ed in the Wall Street Journal. The announcement dashes the hopes of many in the financial services industry who wanted a more substantial delay. Acosta said after considering the record and the requirements of the Administrative Procedure Act, there is "no DOL-17-0281-K-000308 AO 836892 OSEC 000308 principled legal basis to change the June 9 date" for the definition of the term fiduciary and the impartial conduct standards. The DOL delayed portions of the Obama administration's regulatory package that aimed to reduce the allegedly conflicted investment advice given to retirement savers until June 9. Other portions of the rule are delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency. Acosta hinted in the op-ed piece that changes to portions of the rule that are delayed until at least Jan. 1, 2018, may see changes after a notice and comment period. "Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," Acosta said. The DOL also announced this evening a temporary enforcement policy for the rule and issued a set of frequently asked questions on the rule's transition period. Not Responsive Not Responsive DOL-17-0281-K-000309 AO 836892 OSEC 000309 Not Responsive DOL-17-0281-K-000310 AO 836892 OSEC 000310 Not Responsive DOL-17-0281-K-000311 AO 836892 OSEC 000311 Not Responsive DOL-17-0281-K-000312 AO 836892 OSEC 000312 Not Responsive DOL-17-0281-K-000313 AO 836892 OSEC 000313 Not Responsive DOL-17-0281-K-000314 AO 836892 OSEC 000314 Not Responsive DOL-17-0281-K-000315 AO 836892 OSEC 000315 Not Responsive DOL-17-0281-K-000316 AO 836892 OSEC 000316 Not Responsive DOL-17-0281-K-000317 AO 836892 OSEC 000317 Message From: Sent: To: ,---~~--~~9_s~~L.. ( b) (6) ! :_______ .tb..lt~L ___ ,__ J ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i 5/23/2017 8 :30: 5 2 .AM ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·~ :-·-R._'\-~~&~?L: {b){6) I '·-·-·-·-·-·-·-·-·-·-·-•~1---·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·· Subject: RE: Morning Clips 5/23 And can you show me how to get back there sometime today, I know you email instructions, but I can't find them. From: RAAcosta Sent: Tuesday, May 23, 2017 8:30 AM To: Lineberger,Timothy L - OSEC Subject: RE: Morning Clips 5/23 Which is the one behind the pay wall? From: Lineberger,Timothy L - OSEC Sent: Tuesday, May 23, 2017 8:30 AM To: RAAcosta Subject: Re: Morning Clips 5/23 Multiple Bna paywall stories below. Does this have the story you were looking for? On: ~3 May 20~ 7 ?7:23, "Lineberger, Timothy L - OSEC" Morning News CIIps. 5/23/ 17 7 (b)(6) r wrote: '·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·' 5/23 Reuters U.S. Labor Secretary says fiduciary rule to take effect on June 9 with no more delays: Wall Street Journal Click Here 5/22 Wall Street Journal 'Fiduciary' Rule to Take Effect June 9 With No Further Delay, Labor Secretary Says Click Here 5/22 Market Watch Fiduciary rule to take effect June 9, Labor secretary says Click Here 5/22 Investment News Acosta declines to extend delay of DOL fiduciary rule Click Here 5/22 Insurance News Net Acosta Declines to Delay DOL Fiduciary Rule Click Here 5/23 Nasdaq Its Official-DOL Says No More Fiduciary Rule Delays Click Here 5/22 Think Advisor DOL Will Not Delay June 9 Fiduciary Rule Compliance Date: Acosta Click Here 5/23 Washington Post Labor Department will avoid further delay of retirement savings rule Click Here DOL-17-0281-K-000318 AO 836892 OSEC 000318 5/22 ABA Banking Journal Acosta: No Additional Delay for Fiduciary Rule Click Here 5/22 401K Specialist DOL Issues Fiduciary Rule Enforcement Delay Click Here 5/22 Bloomberg . ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Acosta Says Parts of Fiduciary Rule Will Be Effective June 9 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Click Here ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Not Responsive -·Atti cfe·-r-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· U.S. Labor Secretary says fiduciary rule to take effect on June 9 with no more delays: Wall Street Journal Reuters Kanishka Singh 5/23 The "fiduciary rule" aimed at preventing brokers from recommending inappropriate retirement investments, will take effect on June 9 with no further delays, U.S. Labor Secretary Alexander Acosta said on Monday in an opinion piece in the Wall Street Journal. Acosta said in his opinion piece that there is "no principled legal basis to change the June 9 date while we seek public input." on. wsj.com/2q57jwk Calling the fiduciary rule a "controversial regulation", Acosta wrote that while courts have upheld the rule as consistent with Congress' delegated authority, the rule may not align with Trump's "deregulatory goals". Acosta added the rule will go into partial effect on June 9 and full implementation will go into effect on Jan. 1 next year. The Labor Department's fiduciary rule requires firms to eliminate any conflict of interest, such as certain sales incentives for brokers who are advising clients on their retirement savings. Some Democratic Senators on Friday raised concerns over the possibility that the Trump administration will permanently shelve the fiduciary rule. Heavily criticized by Wall Street and Republicans for potentially raising the cost of investment advice, the rule has faced a rocky time becoming effective, with Trump last month delaying its enactment date, originally April 10, for 60 days. Trump has also ordered a review of the rule. Article 2 'Fiduciary' Rule to Take Effect June 9 With No Further Delay, Labor Secretary Says Wall Street Journal Lisa Beilfuss 5/22 The retirement-savings regulation known as the fiduciary rule will take effect June 9 without further delay, Labor DOL-17-0281-K-000319 AO 836892 OSEC 000319 Department Secretary Alexander Acosta said Monday. In an opinion piece for The Wall Street Journal, the new Labor Department chief said "respect for the rule of law" precludes a further delay in next month's applicability date, which had been postponed from April 10 after President Donald Trump directed the department to re-evaluate the Obama-era regulation meant to protect retirement savings from conflicted investment advice. "We have carefully considered the record in this case," Mr. Acosta wrote, "and have found no principled legal basis to change the June 9 date while we seek public input." He said "respect for the rule of law leads us to the conclusion that this date cannot be postponed." The rule takes only partial effect on June 9. Brokers and insurance agents don't need to comply with certain parts of the regulation until Jan. 1, 2018. Mr. Acosta's decision against further delaying the regulation's applicability date is a setback for critics in the financialservices industry. Leaving June 9 in place ensures that firms and advisers will need to be at least partially compliant and communicate certain changes to clients, effectively making the rule harder to reverse down the road. Still, Mr. Acosta left the door open for repeal or revision after the Labor Department completes its economic review, a process that includes taking public comment. "Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals," he said. The establishment of the rule came after a long fight between the financial industry and the Obama administration. The Obama administration said conflicted financial advice costs American families $17 billion a year and pushes down annual returns on retirement savings by a percentage point. Critics, including many financial-industry leaders, have said those figures are inflated and have contended that the rule would punish smaller savers in the form of less access to financial advice and heftier fees for those who trade infrequently. Article 3 Fiduciary rule to take effect June 9, Labor secretary says Martket Watch Victor Reklaitis 5/23 The fiduciary rule will take effect June 9 without any more delays, said Labor Department Secretary Alexander Acosta in a Wall Street Journal opinion piece published late Monday. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote, as he acknowledged that the rule "as written may not align with President Trump's deregulatory goals." The fiduciary rule is a highly contested piece of legislation produced during President Obama's time in office. It's focused on mitigating conflicts of interests that may arise in financial advisers' investment recommendations for retirement accounts. The Department of Labor announced in March that it would delay the rule's implementation -- originally set for April 10 -- until June 9. Article 4 Acosta declines to extend delay of DOL fiduciary rule Investment News Mark Schoeff Jr. 5/22 Labor Secretary Alexander Acosta confirmed Monday night that the agency's fiduciary rule will become applicable on June 9. DOL-17-0281-K-000320 AO 836892 OSEC 000320 "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Mr Acosta wrote in a Wall Street Journal oped that was posted Monday night. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. His decision is a victory for supporters of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. The rule's implementation has been delayed for 60 days - from April 10 until June 9 while the DOL reassesses the regulation under a directive from President Donald J. Trump that could lead to its modification or repeal. The DOL said that two provisions - one expanding the definition of who is a fiduciary and another establishing impartial conduct standards - would become applicable when the delay ends on June 9. The agency said that it would continue its review until Jan. 1, the final implementation date for the rule. Industry opponents pushed Mr. Acosta to extend the delay, arguing that the whole rule should be put on hold while the agency carries out Mr. Trump's order. Supporters threatened to sue the agency if it pushed back the rule beyond June 9 in violation of rule making parameters set out in the APA. In guidance Monday night, the agency said that it would not enforce the rule during the delay. "During the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions," the Field Assistance Bulletin states. In addition to Mr. Acosta's oped and bulletin, the agency released on a new set of frequently asked questions related to the transition period from June 9 to January 1, 2018. Article 5 Acosta Declines to Delay DOL Fiduciary Rule Insurance News Net John Hilton 5/22 Labor Secretary Alexander Acosta announced Monday night that he will not delay the controversial fiduciary rule any further. Writing in a Wall Street Journal opinion piece, Acosta said that "we have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input." "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," the secretary wrote. Acosta graduated Harvard Law School and spent his entire career building an impressive legal resume, which led some analysts to predict he would act cautiously. While the DOL will continue to study the rule and can change some aspects of the second part of the phase in, allowing the June 9 date to stand means the fiduciary rule is likely here to stay. The decision is a win for the Obama administration and consumer groups, which pushed for the fiduciary rule for virtually all eight years of the former president's term. New President Donald J. Trump ordered a delay in a Feb. 3 memo, and the DOL published a 60-delay, which pushed the applicability date from April 10 to June 9. But Acosta wasn't sworn into office until late April, which made it hard for him to influence the process. DOL-17-0281-K-000321 AO 836892 OSEC 000321 Come June 9, agents and advisors must fulfill three main criteria when selling products using retirement dollars: act as a fiduciary, accept only reasonable compensation, and make no "materially misleading statements." What constitutes "reasonable compensation" is the great unknown. The remainder of the fiduciary rule will take effect Jan. 1, 2018. It mandates significant disclosures and a contract signed by client and agent/advisor. Check back with lnsuranceNewsNet for more on this issue in the days ahead. Article 6 Its Official-DOL Says No More Fiduciary Rule Delays Nasdaq Duncan MacDonald-Korth 5/23 Advisors across the US will likely be dismayed today as hope over the DOL's new chief appears to be lost. New DOL head Acosta, who had not previously spoken publicly about the rule, announced yesterday that there would be no more delays of the fiduciary rule before the June 9th applicability date. Acosta said "respect for the rule of law" precluded further delay of the rule. Acosta summarized the situation saying "We have carefully considered the record in this case ... and have found no principled legal basis to change the June 9 date while we seek public input". Despite this, Acosta did leave the door open to a repeal of the rule once it had been applied, saying it may not "align with President Trump's deregulatory goals". FINSUM : So it appears an internal move from the DOL to delay the rule further has no been ruled out. It will come down to Trump, Congress, or the courts to stop it. Article 7 DOL Will Not Delay June 9 Fiduciary Rule Com~liance Date: Acosta Think Advisor Melanie Waddell 5/22 Labor Secretary Alexander Acosta said Monday that Labor will not delay the fiduciary rule's June 9 compliance date while the department seeks public input on the rule as laid out in President Donald Trump's Feb. 3 memorandum. "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so," Acosta said in a Monday op -ed in The Wall Street Journal. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." Under the Obama administration, Acosta continued, "the Securities and Exchange Commission declined to move forward in rulemaking. Yet the SEChas critical expertise in this area. I hope in this administration the SECwill be a full participant." The same day, the Labor Department issued Field Assistance Bulletin No. 2017-02 instituting a temporary enforcement policy, which states that Labor "is actively engaging in a careful analysis" of the issues raised in the president's memorandum. Also released by the Department Monday is frequently-asked-questions guidance regarding the rule's transition period. "It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty DOL-17-0281-K-000322 AO 836892 OSEC 000322 rule and [prohibited transaction exemptions]," the field assistance bulletin states. The department also intends to issue a request for information (RFI) "in the near future seeking additional public input on specific ideas for possible new exemptions or regulatory changes based on recent public comments and market developments." Labor states that it is "also aware that after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest." The RFI will specifically ask for public comment on whether it is likely to take more time to implement these new approaches than what the department envisioned when it set Jan. 1, 2018, as the applicability date for full compliance with all of the exemptions' conditions, and, if so, whether an additional delay of that date would reduce burdens on financial services providers and benefit retirement investors by allowing for a smoother implementation of those market changes. Said Acosta in his op-ed: "From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape . It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to regulatory whim ." The Labor Department, he continued, "will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong." Article 8 Labor Department wil l avo id further de lay of retirement savings ru le Washington Post Jannelle Marte 5/23 A Labor Department rule that would set higher standards for the advice brokers give to retirement savers will go into effect June 9 without further delay, Labor Secretary Alexander Acosta said Monday. The regulation, which is known as the fiduciary rule, was pushed back after President Trump signed a memo in February asking the department to re-evaluate the rule. It was originally supposed to be implemented April 10. In an op -ed for the Wall Street Journal that was published Monday night, Acosta said the department "found no principled legal basis" for delaying the rule further while it seeks feedback from the public about the rule and its potential impact on retirement savers. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta wrote. The head of the Labor Department added that he will comply with the Administrative Procedures Act, which requires agencies to send out public notices and seek input before they write or change rules. The department will seek feedback until Jan. 1. The fiduciary rule would require brokers working with retirement savers to put their clients' interests ahead of their own. The regulation, which was more than six years in the making, is meant to help cut down on conflicts of interest in retirement advice. Supporters of the rule say it could make it more difficult for brokers to recommend investments that could lead to a bigger payout for them, even when there may be another product that could be a better fit for the saver. The Labor Department estimated under the Obama administration that such questionable advice is costing retirement savers DOL-17-0281-K-000323 AO 836892 OSEC 000323 about $17 billion a year. However, some financial firms and industry groups say the approach may have the unintended consequence of limiting savers' options if some brokers decide to eliminate some investments they fear will face more scrutiny under the rule. Parts of the rule will be implemented June 9. But in guidance published Monday, the Labor Department said it will not enforce the regulation until Jan. 1, 2018. Many financial firms have made already made adjustments to help them comply with the new standard. Over the past several months, brokerage firms have lowered fees, designed new mutual fund share classes with simpler fee structures and eliminated some commission-based retirement accounts. The Labor Department said in the written guidance that it is still conducting the review requested by the president. Acosta also hinted that the rule could still face changes down the line. "The Labor Department will roll back regulations that harm American workers and families," he wrote. Article 9 Acosta: No Additional Delay for Fiduciary Rule ABA Banking Journal Staff report 5/22 Labor Secretary Alexander Acosta today announced that the Department of Labor will not delay the June 9 effective date for the fiduciary rule, which greatly expanded the definition of who counts as a "fiduciary" under the Employee Retirement Income Security Act and the Internal Revenue Code. Acosta wrote in a Wall Street Journal op-ed posted this evening that he had reached the conclusion that the Administrative Procedures Act, which governs federal rulemaking, would not allow a further delay. "We ...have found no principled legal basis to change the June 9 date while we seek public input," he wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." While the new definition takes effect June 9, additional conditions - such as specific disclosures and representations - are not required until Jan. 1, 2018. Dal issued a bulletin on its "temporary enforcement policy" of phased implementation. "The department has repeatedly said that its general approach to implementation will be marked by an emphasis on assisting (rather than citing violations and imposing penalties on) plans, plan fiduciaries, financial institutions, and others who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule and exemptions," Dal said. "Accordingly, during the phased implementation period ending on Jan. 1, 2018, the department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." Although Acosta declined to issue a further delay, he said that Dal will continue its review of the final rule pursuant to an executive action by President Trump. "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so," he wrote. "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." The American Bankers Association has strongly advocated for an additional delay and revisions to the rule to facilitate compliance and ensure it does not negatively affect the services available to bank customers. The association expressed disappointment that Dal decided to pursue implementation of a rule that it has said remains "fundamentally flawed and unworkable in critical areas." For more information, contact ABA's Tim Keehan. Article 10 DOL Issues Fiduciary Rule Enforcement Delay 401K Specialist DOL-17-0281-K-000324 AO 836892 OSEC 000324 John Sullivan 5/22 On the same day Labor Secretary Acosta said there's no legal basis for delaying the fiduciary rule's implementation date of June 9, the Department of Labor said it will not actually enforce the fiduciary rule unt il January 1, 2018, as long as fiduciaries "are acting in good faith." The announcement was billed as "relief" and came in the form of a Field Assistance Bulletin on Monday. " ...during the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good fai t h to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." Tellingly, the department left itself open for future flexibility on the rule, noting, "to the extent that circumstances surrounding the applicability date of the fiduciary duty rule and exemptions give rise to the need for other temporary relief, EBSAwill consider taking such additional steps as necessary." The DOL said it is "actively engaging in a careful analysis of the issues raised in the President's Memorandum . It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty rule and PTEs." The Department also intends to issue a Request for Information (RFI) in the near future seeking additional public input on specific ideas for possible new exemptions or regulatory changes based on recent public comments and market developments . "The Department is also aware that after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest," it added before continuing in a very long run-on sentence: "The RFI will specifically ask for public comment on whether it is likely to take more time to implement these new approaches than what the Department envisioned when it set January 1, 2018, as the applicability date for full compliance with all of the exemptions' conditions, and, if so, whether an additional delay in the January 1, 2018 applicability date would reduce burdens on financial services providers and benefit retirement investors by allowing for a smoother implementation of those market changes." Although the department has a "statutory responsibility and broad authority to investigate or audit employee benefit plans and plan fiduciaries to ensure compliance with the law," compliance assistance for plan fiduciaries and other service providers is also a high priority for the Department," it said by way of explanation. "The Department has repeatedly said that its general approach to implementation will be marked by an emphasis on assisting (rather than citing violations and imposing penalties on) plans, plan fiduciaries, financial institutions, and others who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule and exemptions ." Consistent with that approach, the department has determined that temporary enforcement relief is appropriate and in the interest of plans, plan fiduciaries, plan participants and beneficiaries, IRAs, and IRA owners. Article 11 Acosta Says Parts of Fiduciary Rule Will Be Effective June 9 Bloomberg Kristen Ricaurte Knebel 5/23 Secretary of Labor Alexander Acosta won't put the brakes on the portions of the DOL's fiduciary rule that are set to take DOL-17-0281-K-000325 AO 836892 OSEC 000325 effect in a matter of weeks, he announced this evening in an op-ed in the Wall Street Journal. The announcement dashes the hopes of many in the financial services industry who wanted a more substantial delay. Acosta said after considering the record and the requirements of the Administrative Procedure Act, there is "no principled legal basis to change the June 9 date" for the defini t ion of the term fiduciary and the impartial condu ct standards . The DOL delayed portions of the Obama administration's regulatory package that aimed to reduce the allegedly conflicted investment advice given to retirement savers until June 9. Other portions of the rule are delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency. Acosta hinted in the op -ed piece that changes to portions of the rule that are delayed until at least Jan. 1, 2018, may see changes after a notice and comment period. "Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," Acosta said. The DOL also announced this evening a temporary enforcement policy for the rule and issued a set of frequently asked questions on the rule's transition period . Not Responsive Not Responsive DOL-17-0281-K-000326 AO 836892 OSEC 000326 Not Responsive DOL-17-0281-K-000327 AO 836892 OSEC 000327 Not Responsive DOL-17-0281-K-000328 AO 836892 OSEC 000328 Not Responsive DOL-17-0281-K-000329 AO 836892 OSEC 000329 Not Responsive DOL-17-0281-K-000330 AO 836892 OSEC 000330 Not Responsive DOL-17-0281-K-000331 AO 836892 OSEC 000331 Not Responsive DOL-17-0281-K-000332 AO 836892 OSEC 000332 Not Responsive DOL-17-0281-K-000333 AO 836892 OSEC 000333 Not Responsive DOL-17-0281-K-000334 AO 836892 OSEC 000334 Message From: Sent: r-~;::;~::"~!f ~,~~~:~='"'''L ____________________ (b)(6)______________________ I f:~~i.C~i.~J.-----------------.--------------------------------------------( b)(6) ______________________________ ! q ____________________________________________ { To: CC: b}_( 6) ____ Smith,_ Gavi_nJ - _OSE ! ( I ) ( b 6 ··-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·_L _____________________ _ ) Haze lton, Jennifer - IRogecs,Jill iao B-OSEC 'l________________ (b)(6)________________ J;~~ec, Wayoe D - OSEC Subject : Even ing Clips 5/ 23 Evening News Clips: 5/23/17 5/23 Washington Examiner Trump's Labor Secretary Alexander Acosta won't delay Obama investment rule opposed by GOP Click Here 5/23 LA Times Delayed retirement advisor rule will go into partial effect, but changes may still be possible Click Here 5/23 CNBC Controversial rule for retirement advisors t o take effect - for now Click Here 5/23 Financial Advisor IQ No More Delay for DOL Rule: It Goes Live June 9 Click Here 5/23 NAPA Net Acosta Won 't Delay the Fiduciary Regulation Click Here 5/23 Business Insider A consumer protection rule that had been delayed by Trump is set to go through Click Here 5/23 Financial Advisor Magazine Fiduciary Rule Proponents Preening Over Victory, But Cheering May Be Short-Lived Click Here 5/23 Bloomberg Money Laundering and Quant Code (Also the fiduciary rule) Click Here 5/23 Pensions and Investments Fiduciary rule set for June deployment Click Here 5/23 Forbes Labor Secretary Acosta Concedes Fiduciary Rule Cannot Be Legally Stopped Before June 9th Click Here Not Responsive 5/23 Wall Street Journal Fiduciary Rule Defies the Odds and Lives On Click Here 5/23 Bloomberg Broker Stocks Drop After Labor Secretary Says Fiduciary Rule Will Take Effect June 9 Click Here DOL-17-0281-K-000335 AO 836892 OSEC 000335 5/23 Financial Planning No longer delayed, but what's next for the fiduciary rule? Click Here 5/23 ABC News (AP) Obama-era rule on financial advisers to go forward, for now Click Here 5/23 Advisor Hub DOL Rule Date Ensured, Class-action Lawsuits Take Spotlight Click Here 5/23 Investment News Click Here 5/23 Vax Labor secretary Alexander Acosta gives DOL fiduciary rule supporters something to cheer about - at least for now The Trump administration won't block an Obama-era consumer protection rule 5/23 International Investment US Labor Secretary says Fiduciary Rule to go ahead on 9June Click Here 5/23 Wealth Management Acosta Won't Extend DOL Rule Delay Click Here 5/23 Financial Planning Dal uncertainty: What to do now Click Here 5/23 The Hill Labor Department to implement Obama's investment adviser rule Click Here 5/23 RIABiz Alexander Acosta's letter to WSJ has a double message on DOL rule and one long -term objective: Gut it Click Here '.J"t.:.-· 5/23 -·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Click Here ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ■ Not Res po ns 1ve 5/23 '·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 5/23 Market Watch . ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Obama, Buffett or Trump: who's right about the cost of retirement investing advice? ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Click Here -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-- Not Responsive L--·-·-·- -·-·-·-·-·-·-·-·-·-·-·-1-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·r·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-· Article 1 Trump's Labor Secretary Alexander Acosta won't delay Obama investment rule opposed by GOP Washington Examiner DOL-17-0281-K-000336 AO 836892 OSEC 000336 Joseph Lawler 5/23 Labor Secretary Alexander Acosta won't delay the Obama administration's rule on investment conflicts of interest any longer, despite pressure from congressional Republicans who have warned that the regulation will raise costs and cut some savers off from financial advice. In the month that he has been in office, Acosta explained, he and the department "have found no principled legal basis" for further delaying the rule, after the Trump administration paused it. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta wrote in a Wall Street Journal op-ed. The rule in question, known as the "fiduciary rule," would reshape the retirement investment industry and has faced fierce opposition from the industry and congressional Republicans. It would require all advisers and brokers who manage tax-privileged retirement accounts, such as IRAs, to adhere to the legal standard that they act in their client's best interests. Obama said the rule was necessary to crack down on kickbacks in the industry. The Obama administration argued that savers were being bilked, to the tune of $17 billion a year, by unscrupulous brokers who were steering them into inappropriate investment products in order to create a profit for themselves. In recent months, congressional Republicans have pushed the agency to delay or cancel the rule, on the grounds that it would raise paperwork costs and result in small savers and small businesses losing their brokers. Yet the laws governing the development of regulations make that impossible, Acosta wrote. In fact, on Sunday, an Obama administration labor official predicted that the Trump administration would not be able to hold off the rule longer for that reason, noting that it took the Obama Labor Department six years to write it in order to fulfill all the required analysis. Article 2 Delayed retirement advisor rule wi ll go into partial effect, but changes may still be possible LA Times Jim Puzzanghera 5/23 A controversial Obama-era rule for retirement advisors, delayed by a review ordered by President Trump because of strong Republican and financial industry opposition, will partially take effect next month, Labor Secretary Alexander Acosta said. But Acosta indicated he has problems with the rule and that there still could be changes or a repeal before all of its provisions kick in next year. The regulation, known as the fiduciary rule, requires investment brokers who handle retirement funds to put their clients' interests ahead their own compensation, company profits or other factors. The Obama administration said those conflicts of interest cost consumers $17 billion a year as they are steered toward IRAs and other retirement investments with higher fees or lower returns. But opponents, including key players in the financial industry and most Republicans, complained that the rule would increase the cost of investments by forcing asset management firms to spend money on implementation and make it more difficult for average Americans to get retirement advice. The Republican-controlled Congress voted last year to overturn the rule, but Obama vetoed the measure. DOL-17-0281-K-000337 AO 836892 OSEC 000337 Trump ordered a review of the rule on Feb. 3, with White House Press Secretary Sean Spicer calling it a "regulatory overreach" by the Labor Department. Parts of the rule were supposed to take effect on April 10, but the Labor Department delayed that for 60 days to conduct the review. Noting that some opponents of the rule have called for a continued delay, Acosta said his review of the Administrative Procedure Act has "found no principled legal basis" to do so. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta wrote in an opinion article for the Wall Street Journal posted Monday night. "The Labor Department will roll back regulations that harm American workers and families," he said. "We will do so while respecting the principles and institutions that make America strong." Some provisions will go into effect on June 9, including the requirement that financial advisors act in the best interest of their clients. But a key component of the regulation, that firms accepting commissions put the provisions into customer contracts, will not take effect until Jan. 1, 2018. In formal guidance, the Labor Department said it would "not pursue claims" against advisors who work "diligently and in good faith" to comply with the rule until it fully takes effect on Jan. 1. Acosta, who took office on April 28, indicated that he has problems with the rule and that a full implementation not come or the regulations could be watered down. He is seeking additional public input. might The rule "as written may not align with President Trump's deregulatory goals," Acosta said. "Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," he wrote. Acosta, a former Justice Department official, was Trump's second nominee for Labor secretary. He was chosen after Southern California fast-food executive Andrew Puzder withdrew from consideration amid controversies that threatened his Senate confirmation. Article 3 Controversial rule for retirement advisors to take effect - for now CNBC Jeff Cox 5/23 A controversial rule that requires financial advisors to work in the best interests of their clients will go into effect next month as scheduled, Labor Secretary Alexander Acosta said. Despite efforts to delay it further, the so-called fiduciary rule will get put in place June 9, Acosta wrote in an op-ed for the Wall Street Journal. However, analysts believe there will be more changes to come before full implementation takes effect. The rule has come under criticism for limiting investor choice and likely increasing costs for the financial advisory industry. The administration already delayed the rule once past its original April 10 implementation date, but apparently has decided to go ahead with the first steps . "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote . "Respect for DOL-17-0281-K-000338 AO 836892 OSEC 000338 the rule of law leads us to the conclusion that this date cannot be postponed." President Donald Trump had ordered a sweeping review of regulations under former president Barack Obama that included the fiduciary rule. Advocates for the rule believe it will help retirees by eliminating hidden costs and provide more disclosure. However, advisory heavyweights like BlackRock and Vanguard have warned of unintended consequences. BlackRock recently called for a 12-month delay in implementation until the rule is better crafted . Industry advocates estimate lost revenue of more than $10 billion and a possible shift of $2 trillion in assets for the $16 trillion industry. Acosta conceded weaknesses in the rule but said the courts have spoken. A Texas court recently upheld the rule. "Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals," Acosta wrote. "This administration presumes that Americans can be trusted to decide for themselves what is best for them." A 'speed bump' for the rule However, this is likely not the end of the debate. Full implementation is not scheduled until Jan. 1, and the administration is still seeking more public input. "This surprising development is a near-term negative for an industry that had expected more immediate regulatory relief, but all indications are that this rule will ultimately be relaxed," analysts at Compass Point Research and Trading said in a note to clients. "We maintain our view that the likeliest outcome for the fiduciary rule is a revamped construct that lessens the associated legal liability and softens the treatment of variable and indexed annuities." Analysts at FBRcalled the move "a speed bump in the ultimate reworking and fundamental rewriting of the fiduciary rule." FBRadded that a "full-scale rewrite" is likely with rules drawn up not just by the Labor Department but also with input from the Securities and Exchange Commission. The most controversial aspect of the rule is known as the Best Interest Contract exemption and does not go into effect until Jan. 1. That forbids advisors from charging different commissions for different products unless they qualify for exemptions, and is likely to undergo the most revisions. Advisors have complained that the BIC rule is too complicated and needs more clarification. Article 4 No More Delay for DOL Rule: It Goes Live June 9 Financial Advisor IQ Alex Padalka 5/23 The Department of Labor has a confusing message about its fiduciary rule. In a Wall Street Journal op-ed piece, Labor Secretary Alexander Acosta says it will go into effect, as scheduled, on June 9 with no further delays. But Acosta also alludes to a to the need for further review of the rule, with no timeline given. "Respect for the rule of law" has led the DOL to conclude that it can't further postpone the darulete, Acosta writes in the DOL-17-0281-K-000339 AO 836892 OSEC 000339 Journal. But Acosta also says the rule needs more public input, presumably an indication the rule may be modified. The so-called DOL rule, which requires retirement-account advisors in all channels to adhere to the fiduciary standard, will go into partial effect June 9, with full implementation scheduled for the start of 2018, according to Acosta. The rule was originally scheduled to go into effect last month, but the DOL delayed it by 60 days in keeping with a presidential memorandum issued in February. But in his Wall Street Journal opinion piece, Acosta also writes it's necessary to get more public input on the rule, which he calls a "controversial regulation" - and that the DOL still plans to follow through on president Donald Trump's directive to review it. Opponents of the rule have said that it could reduce investors' choices and would benefit trial lawyers at investors' expense, he writes, adding that Trump's administration "presumes that Americans can be trusted to decide for themselves what is best for them" - a view that puts in question the need for the rule. Acosta also hopes the SEC"will be a full participant" in drafting a fiduciary rule, which the commission has so far declined to move on. Keeping to the June 9 date means advice firms and brokers will have to comply, at least partially, with the rule and send out documented changes to clients, the Journal writes. This in itself will make it more difficult to undo the rule later, according to the newspaper. The rule still faces several legal challenges from its opponents, including on the grounds of violating free speech. In addition, the rule could still be effectively killed under a Dodd-Frank overhaul bill that's already made it past the committee level and now moves for a full House vote. Article 5 Acosta Won't Delay the Fiduciary Regulation NAPA Net Nevin E. Adams 5/23 Secretary of Labor Alexander Acosta is now on record saying he won't delay implementation of the fiduciary regulation. He chose a very public means of doing so: an op-ed in The Wall Street Journal (subscription required) in which he states that "the Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so." He goes on to "recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018," and that while some have called for a complete delay of the rule, "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input." Citing two core principles - respect for the individual and respect for the rule of law - Acosta explains that "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." 'Align' Meant? That said, and while acknowledging that that " ...courts have upheld this rule as consistent with Congress's delegated authority," he goes on to state that "the Fiduciary Rule as written may not align with President Trump's deregulatory goals. This administration presumes that Americans can be trusted to decide for themselves what is best for them." DOL-17-0281-K-000340 AO 836892 OSEC 000340 Going on to acknowledge the frustration of those who "call for immediate action on the Obama administration's regulations" with the "slow process of public notice and comment," Acosta replied: "But t his process is not red tape . It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to regulatory whim." He also noted that while under the previous administration, "the Securities and Exchange Commission declined to move forward in rule-making" despite its "critical expertise in this area," he hopes that in this administration the SECwill be a "full participant." Acosta closed by noting that the Labor Department will roll back regulations that harm American workers and families, but that "We will do so while respecting the principles and institutions that make America strong." NAPA Net had just reported that Acosta recently expressed his intention to freeze the rule in a way that would "stick" in a conversation with Sen. Tim Scott (R-SC).That report triggered a written response to Acosta from Sens. Patty Murray (D-WA), Elizabeth Warren (D-MA) and Corey Booker (D-NJ) encouraging him to wait for the outcome of the Labor Department's analysis of the rule. EBSAAnnouncement Also, late on May 22 the Employee Benefit Security Administration (EBSA)announced in Field Assistance Bulletin No. 2017-02 that during the phased implementation period ending on Jan. 1, 2018, the Labor Department "will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." The FAB also noted that, "to the extent that circumstances surrounding the applicability date of the fiduciary duty rule and exemptions give rise to the need for other temporary relief, EBSAwill consider taking such additional steps as necessary." "NAPA recognizes that many in the industry are going to be concerned about where we go from here," commented American Retirement Association CEO and NAPA Executive Director Brian Graff. "Rest assured, NAPA's Government Affairs Committee has already been providing input to DOL staff on ways to improve and streamline the rule, and will continue to do so." Article 6 A consumer protection rule that had been delayed by Trump is set to go through Business Insider Rachel Levy 5/23 The US Labor Department will implement its fiduciary rule on June 9 with no further delays, marking a short-term win for consumer protection advocates. The department's rule, which requires brokers offering retirement investment advice to act in the best interest of their customers, has been heavily criticized by Republicans and Wall Street amid concerns it may make investment advice too costly. Consumer protection groups have long advocated for the rule, however. Conflicted financial advice costs retirement savers about $17 billion a year, the Obama administration estimated in a 2015 report. The rule has faced a rocky time becoming effective, with President Trump last month delaying its enactment date, originally April 10, for 60 days. Trump has also ordered a review of the rule, which set in motion a potential repeal. Acosta, in an opinion piece posted Monday night in the Wall Street Journal, said there was "no principled legal basis to change the June 9 date while we seek public input." DOL-17-0281-K-000341 AO 836892 OSEC 000341 The rule goes into partial effect on June 9, with full implementation on January 1, 2018. Calling the fiduciary rule a "controversial regulation," Acosta said while courts have upheld the rule as consistent with Congress' delegated authority, it may not align with Trump's "deregulatory goals". He also said the department was seeking "public comment" on how to revise the rule, leaving open a possibility of repealing the rule in future. Acosta also said that he hoped the Securities and Exchange Commission will be a "full participant" in designing the fiduciary rule. "These are signs of positive movement for advisers and active managers despite industry disappointment that Labor failed to kill the rule," Cowen and Co. analyst Jaret Seiberg said in a client note. Wall Street firms may still find a win of sorts, despite that the rule's implementation date was not blocked. "This surprising development is a near-term negative for an industry that had expected more immediate regulatory relief, but all indications are that this rule will ultimately be relaxed," Compass Point said in a May 23 research note. "We maintain our view that the likeliest outcome for the fiduciary rule is a revamped construct that lessens the associated legal liability and softens the treatment of variable and indexed annuities." Article 7 Fiduciary Rule Proponents Preening Over Victory, But Cheering May Be Short-Lived Financial Advisor Magazine Ted Knutson 5/23 In regulatory Washington, where delay is usually synonymous with death, fiduciary rule proponents are lauding Alexander Acosta for not tacking on additional wait time to the best interest standard that is set to go into partial effect June 9 and full January 1. But there is plenty in the new Labor Department Secretary's announcement that portends their fanfare for him could be short-lived. Acosta's announcement in a Wall Street Journal op-edit Tuesday that the rule is solid law is good for proponents. At the same time, his indication that he believes the best interest standard may not be solid policy may be bad for them. The Labor Secretary's statement that "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise the rule" is where their cheering could stop. The Trump Administration's idea what Americans to listen to listen to is considerably different than that of fiduciary rule proponents who also take up a wide range of investor protection causes. Acosta's urging of the now Republican-dominated Securities and Exchange Commission to become a "full participant" should give them pause. He criticized the SECfor not taking a major role in the rule's formation as has Republican SECCommissioner Michael Piwowar -- many times. At the end of his piece Acosta promises to roll back regulations that harm American workers and families. Article 8 Money Laundering and Quant Code (Also the fiduciary rule) DOL-17-0281-K-000342 AO 836892 OSEC 000342 Bloomberg Matt Levine 5/23 Fiduciary rule. Controversial news, everyone: The fiduciary rule is happening! The retirement-savings regulation known as the fiduciary rule will take effect June 9 without further delay, Labor Department Secretary Alexander Acosta said Monday. In an opinion piece for The Wall Street Journal, the new Labor Department chief said "respect for the rule of law" precludes a further delay in next month's applicability date, which had been postponed from April 10 after President Donald Trump directed the department to re-evaluate the Obama-era regulation meant to protect retirement savings from conflicted investment advice. I am perhaps the only person in America without a strong view one way or the other about the advisability of the fiduciary rule so, you know, fine, whatever. But as a regulatory matter this is fascinating: During the campaign, Trump fund-raiser Anthony Scaramucci compared the fiduciary rule to slavery, and Trump's instruction to re-evaluate the rule came with a pretty strong hint of "and get rid of it." And Acosta still might get rid of it, saying that "the Fiduciary Rule as written may not align with President Trump's deregulatory goals." But he can't get rid of it yet. First of all he has to go through much the same process -- economic analysis, public notice and comment -- that the Obama Labor Department went through in making the rule. The way the U.S. administrative state works is that regulating is hard, but deregulating is pretty much equally hard. And so Acosta wrote a paean to the Administrative Procedure Act on the opinion page of the Wall Street Journal, which is not exactly what I expected from the Trump administration. I will quote from it generously here because, come on, how often do you read paeans to the Administrative Procedure Act? "Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. "The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modern world, regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americansworkers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed." So it will take a while to even consider repealing the fiduciary rule. And meanwhile it will start going into effect, and once brokerages have moved customers to unconflicted fee-based accounts, it may be hard to move them back. The president doesn't want the fiduciary rule, and his Labor Secretary doesn't want the fiduciary rule, and Congress probably doesn't want the fiduciary rule, but they're going to get it anyway, because the rule of law operates separately from their current desires. Article 9 Fiduciary rule set for June deployment Pensions and Investments Hazel Bradford 5/23 DOL-17-0281-K-000343 AO 836892 OSEC 000343 A new fiduciary rule will take effect June 9 as scheduled, with full implementation said late Monday. by Jan. 1, the Department of Labor The DOL also pledged to not pursue claims against fiduciaries working in good faith to comply with the rule and provisions, "or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions" during the phased implementation period, the agency said in an enforcement bulletin. The announcement referenced a Feb. 3 memorandum from President Donald Trump ordering the DOL to examine whether the new rule would adversely affect access to retirement saving advice and to conduct a new economic and legal analysis of its likely impact. "It is possible, based on the results of the examination, that additional changes will be proposed to the fiduciary duty rule" and related exemptions, the DOL said, promising to issue a request for information "in the near future" to get public input on specific ideas for possible new exemptions or regulatory changes. Dennis Kelleher, president and CEO of the non-profit advocacy group Better Markets, in a statement called the announcement "a great victory for Americans saving for retirement." Mr. Kelleher said Labor Secretary Alexander Acosta "admitted that there is no legal basis to delay the best-interest rule," and acknowledged that Trump administration officials "have to follow the rule of law in deregulating just as President Obama and everyone has to follow the rule of law when enacting regulations." Undoing the rule would involve proposing and finalizing a new one after a public comment period. Mr. Acosta said in a May 23 opinion piece released by the DOL that while his agency will seek further public input on how to revise the entire rule, officials there "have found no principled legal basis to change the June 9 date." "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," he wrote, adding that he hopes the Securities and Exchange Commission "will be a full participant" in that review. Article 10 Labor Secretary Acosta Concedes Fiduciary Rule Cannot Be Legally Stopped Before June 9th Forbes Jamie Hopkins 5/23 It looks like the wait is finally over as Labor Secretary Alexander Acosta stated in an opinion piece for The Wall Street Journal today that the Department of Labor has "found no principled legal basis to change the June 9 date[.]" While full implementation does not kick in until January 1, 2018, the major changes to the financial services industry will now occur by June 9, 2017, especially product and fee related changes. This means firms and financial advisors dealing with retirement accounts need to be compliant and communicate their changes to clients in just a few weeks. However, companies have had well over a year of notice at this point and were granted a 60-day delay to help prepare back in March. While fiduciary rule advocates rejoice today, the future of a fiduciary standard for retirement advice is not entirely clear. Acosta also stated that "[a]lthough courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals." The tone from Acosta's article is that deregulation is still coming but the Department of Labor needs to follow the law and rulemaking process. As such, he alone, nor can Trump alone, stop the rule. So, what should people expect? Between June 9, 2017 and January 1, 2018, it is expected that the DOL will move forward with new rulemaking to overturn or at least modify the current fiduciary rule. Furthermore, many expect the full implementation date of January 1, 2018 to be postponed. While it appears all but certain June 9th will bring forth a new era in retirement planning under a fiduciary rule, there are still two potential ways the rule could get delayed. First, the courts could still delay the rule. However, this seems very unlikely as most courts have found in favor of the rule so far. Secondly, Congress and President Trump could sign a bill into law delaying or removing the fiduciary rule. However, this also seems highly unlikely to be accomplished in just about two and a half weeks as health care and tax reform would appear to be higher priorities and they still have not DOL-17-0281-K-000344 AO 836892 OSEC 000344 made it through Congress to the President's desk. Another unknown is what the SECwill do. The SECwas granted authority to promulgate a fiduciary investment standard; however, they have yet to act. While the rule is said to be "in the works" no one expects to see a final rule anytime soon. This creates another level of uncertainty. Some critics of the DOL fiduciary rule argue that the DOL should wait until the SECcreates a rule so that the two rules do not conflict and that the SECis really the correct agency to develop such a rule. However, a potential repeal of Dodd-Frank or other deregulatory moves could strip the SECof their power to create a rule. So today, the SEC'srole and potential creation of a different fiduciary rule remain up in the air. While many companies moved forward and prepared for the rule back in 2016 when it was originally passed, many companies and financial advisors have delayed acting in hopes the rule would never see the light of day. Following Acosta's comments, it is imperative for financial services firms and financial advisors to make sure they are compliant come June 9th. Not being compliant with this rule and showing no good faith effort to comply could basically put you out of business. For some companies it will be a boom for business, while for others the fiduciary rule creates significant challenges. For advisors, even if they do not agree with the rule, they need to start acting in accordance with it. This means making sure you are compliant, communicating changes to clients, documenting their processes, and making sure the processes are in line with best practices. This could mean many advisors may need to get additional education and training. Today, there is really no baseline or required education to be a financial advisor. A fiduciary standard changes this a bit, as there are some things advisors will just need to know to act as a proper fiduciary. To perform as a fiduciary, you are really held to an expert standard as a "prudent person" acting in a similar situation. For some advisors this will be the status quo, while for others it will be a major overhaul of their business practices, fees, products, and processes. The reality is that this rule has been very controversial. The Obama Administration focused a lot on what they believed were excess fees being charged against retirement accounts and retirees. Other supporters of the rule say this is what clients already expect, that their financial advisor act as a fiduciary. On the other side, opponents of the rule have said this will push low-income and middle-income clients out of the market, as fiduciary advice is more expensive. In fact, almost all sides have valid points. Some retirees are being overcharged today, there are some bad actors out there, and many clients do expect their advisors to act as a fiduciary, but fiduciary advice is more expensive. In the end, that comes down to value for price, and the idea is that a fiduciary should be providing reasonable value for his or her fees. However, two things are certain: the DOL fiduciary rule will be disruptive to the retirement planning industry, and the arguments over the rule are not done yet. Not Responsive DOL-17-0281-K-000345 AO 836892 OSEC 000345 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ,- Article 12 Fiduciary Rule Defies the Odds and Lives On Wall Street Journal Lisa Beilfuss 5/23 The Labor Department's landmark retirement-savings rule is set to take effect in 2½ weeks, a move that underscores the difficulty the Trump administration is encountering in undoing Obama -era financial regulations. In a Wall Street Journal opinion piece published late Monday, Labor Department Secretary Alexander Acosta surprised many across the brokerage and insurance industries by not recommending a delay in the rule beyond June 9. "The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so," Mr. Acosta wrote. "Some have called for a complete delay of the rule," but after considering the matter, "respect for the rule of law leads us to the conclusion that this date cannot be postponed." The rule-which requires that stewards of retirement savings act in clients' best interest as opposed to the lower "suitability" standard-takes only partial effect on June 9. Brokers and insurance agents don't need to comply with certain parts of the regulation until Jan. 1. Still, Mr. Acosta's decision against further delaying the regulation's applicability date is a setback for critics in the financial-services industry. Leaving June 9 in place ensures that firms and advisers will need to be at least partially compliant and communicate certain changes to clients, effectively making the rule harder to reverse later. "We are disappointed in this latest development," said the Financial Services Institute, a trade group representing financial advisers, adding that it would "bring our members critical tools to help them comply with this rule." Advocates of the rule, however, were heartened by the move. Nancy LeaMond, executive vice president at AARP, a group representing the interests of older Americans, called Mr. Acosta's decision "a significant victory" for retirement savers. Although it is a longer shot now, the Labor Department's review of the fiduciary rule could still result in significant revisions or even find that a repeal is in order. In a memorandum to the department shortly after taking office, President Donald Trump specifically asked the department to evaluate the regulation's effects on consumer choice, potential industry disruption, and increased litigation. In his opinion piece, Mr. Acosta left open the possibility that the review leads the Labor Department to revise or scrap the fiduciary rule. He acknowledged the Trump administration's commitment to reversing "unnecessary regulations" that eliminate jobs or impose costs that exceed their benefits. "The Fiduciary Rule as written may not align with President Trump's deregulatory goals," wrote Mr. Acosta. The establishment of the rule came after a long fight between the financial industry and the Obama administration. The Obama administration said conflicted financial advice costs American families $17 billion a year and pushes down annual DOL-17-0281-K-000346 AO 836892 OSEC 000346 returns on retirement savings by a percentage point. Opponents, including many financial-industry leaders, have said those figures are inflated and have contended that the rule would punish smaller savers in the form of less access to financial advice and heftier fees for those who trade infrequently. The decision to let the regulation come into effect June 9 makes it much harder to undo the rule, experts say, because firms across the country have to communicate compliance changes to clients. Such communications would include disclosures about how clients are charged and commitments to put customers' interests first. "It is going to be difficult to roll those [changes] back, said Erin Sweeney, an attorney at Miller & Chevalier Chartered who represents parties in litigation regarding fiduciary obligations. Some brokerages have already moved to solidify their compliance plans for retirement savers. J.P. Morgan Chase & Co., for example, will now move forward with its plans to shift wealth-management clients who pay commissions in IRAs to either a self-directed option or its fee-based platform, a spokesman said Tuesday. "This puts us into an embarrassing predicament if this goes away," said Mark Cresap of Cresap Inc., a small brokerage firm in Radnor, Pa., who said he has had been holding off on distributing client disclosures that are written and ready to go. "I think there's a chance for the opponents" still hoping for reprieve, Ms. Sweeney said, "but the window is closing quite rapidly." Ms. Sweeney said at this point, the Labor Department appears to be more focused on helping firms comply with the regulation than with changing it. Overturning the regulation has proved harder than some opponents anticipated. The rule's resilience is in part owed to the Obama administration's approach that included six years of economic analysis, days of public hearings and over 100 meetings. Courts across the country have upheld the department's authority and shut down challenges to the rule's scope. Moreover, said Ms. Sweeney, the regulation saves investors $147 million every 60 days. "Given the incredible dollars involved," she said, "it would be a heavy lift" and require something to come out of the new economic review that changes the calculus. Article 13 Broker Stocks Drop After Labor Secretary Says Fiduciary Rule Will Take Effect June 9 Bloomberg Sebastian Silva and Felice Maranz 5/23 Companies with exposure to the fiduciary rule, including Stifel Financial Corp., LPL Financial Holdings Inc. and Primerica Inc., fell after Labor Secretary Alexander Acosta wrote a Wall Street Journal op-ed saying the measure will take effect June 9 with no further delay. Analysts said that's a blow to broker-dealers, asset managers and insurers, which had been lobbying Acosta and the White House to keep delaying the rule while rewriting it. Now the industry will have to absorb the heightened arbitration and legal risk it had hoped to avoid after President Donald Trump's election in November, Capital Alpha Partner's Charles Gabriel wrote in a note. Stifel closed down 1.1 percent in New York, while Primerica dropped 4.3 percent and LPLfell 1.7 percent. Acosta wrote that the Labor Department will seek additional public input on the rule but didn't find a legal basis to adjust the June 9 date while doing so. The rule requires brokers to put customers' best interests ahead of their own. DOL-17-0281-K-000347 AO 836892 OSEC 00034 7 "While we are disappointed that the Department of Labor has chosen not to further delay the rule until the Department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input," Kenneth Bentsen, president of the Securities Industry and Financial Markets Association, said Tuesday in a statement. The Department of Labor opting not to delay the rule is a net negative for retail brokers, Nomura lnstinet's Steven Chubak wrote in a note, as it raises questions about the Trump administration's ability to roll back Obama-era regulations. Nomura lnstinet cut its rating on Stifel and reduced its stock price targets for LPLand Raymond James Financial Inc. A Labor Department spokesman didn't immediately respond to requests for comment. Expecting Softening Brokers had fallen along with other financial companies earlier this month as investors questioned the Trump administration's capacity to enact its agenda amid the escalating scandal over allegations that the president tried to derail the FBI probe of former National Security Adviser Michael Flynn. Some analysts say the rule is likely to be softened in months ahead and its implementation may be temporary as it's rewritten. Keefe Bruyette & Woods analyst Brian Gardner highlights Acosta's point in the op-ed that the rule is being considered as part of the administration's review of financial regulations. KBW thinks that the administration sees the rule as too restrictive and expects future modification expanding some of the prohibited transaction exemptions, including the best interest contract (BIC) exemption. KBW also expects the Trump administration to explore ways to reduce paperwork and compliance requirements, along with curbing a provision allowing class action lawsuits. "The DOL announcement is in line with our general expectations that chances for a further delay in the fiduciary rule were diminishing but that further modifications to the rule remain on the table," Gardner wrote in note. Annuity companies including Prudential Financial Inc. and Lincoln National Corp. have attributed a decline in industrywide sales to uncertainty tied to the fiduciary rule. Sales of the retirement products, which face increased scrutiny under the new regulation, slumped 12 percent to about $52 billion in the first quarter of 2017 compared to the same period a year earlier. "We are very disappointed that the entire rule will not be further delayed so a full examination of the rule can be conducted, as directed by President Trump, before it goes into effect," Cathy Weatherford, president of financial services trade group Insured Retirement Institute, said Tuesday in a statement. Even as certain trade groups fought the rule, some insurers have urged the department to end the period of uncertainty. Principal Financial Group Inc. Chief Executive Officer Dan Houston said in February that sooner or later clarity needed to be provided since companies operate in a pretty litigious environment. Article 14 No longer delayed, but what's next for the fiduciary rule? Financial Planning Andrew Welsch 5/23 When it comes to the fiduciary rule, advisers are no longer waiting for Godot. By declining to delay the rule's June 9 implementation date a second time, Secretary of Labor Alexander Acosta dodged potential lawsuits from fiduciary advocates and ensured that an industry which has spent millions to prepare for implementation will finally get on with it. DOL-17-0281-K-000348 AO 836892 OSEC 000348 Yet even then, it's not a total victory for the rule's supporters. Secretary Acosta's message was carefully tailored to give something to both sides, industry observers say. Sticking with the implementation date pleased supporters, but the secretary - who is overseeing a review of the regulation - also nodded to opponents' critiques. "Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," he wrote in an opinion article in the Wall Street Journal. Some industry trade groups, such as SIFMA, took note of Acosta's critical tone. "While we are disappointed that the Department of Labor has chosen not to further delay the rule until the department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input," SIFMA said in a statement. Attorney Michael Renetzky, co-chair of law firm Locke Lord's corporate and transactional department, says it appears clear Acosta intentionally left room for further comments and revisions. "In fact, it appears that he has left the door open to a possible repeal," Renetzky says. "I take his opinion piece at face value. He seems to have concluded that he doesn't have a basis to institute further delay. However, he hasn't actually stepped back from the president's directive to evaluate opportunity for revision or repeal." Though some of the rule's provisions go into effect June 9, other aspects such as the best interest contract exemption are not implemented until January 2018. And the Labor Department could still opt to tweak the rule's language, particularly around the BIC, after completing its regulatory review. "Once you get some of those key provisions in place, it's harder to take them away then it is to prevent them from being adopted," says Barbara Roper, director of consumer protection at the Consumer Federation of America. "But we have no illusions about what the industry's goal is here; they want a watered down rule that lets them call themselves fiduciaries without actually being fiduciaries." Although the Labor Department may suggest amendments, it still faces tough legal hurdles. "I expect the focus now will of Fi360, says. "But the Dal go into effect largely intact. incredibly difficult to either be on refinement to the rule with more public comment," Blaine Aikin, executive chairman spent six years meticulously building the rule and every development indicates the rule will Companies will be adhering to the rule and when everyone moves forward it will be kill or significantly modify the rule." 'STARTING PISTOL' Fiduciary supporters, meanwhile, were elated at hearing it would not be delayed again. "It's a positive thing if you believe that someone being a fiduciary is good for investors," says Paul Pagnato, who is cofounder of RIA PagnatoKarp in Reston, Virginia. Jon Ten Haagen, who has an eponymously named firm in Huntington, New York, says he voted for Trump but supports a fiduciary standard. If you're in financial services "you should be obliged to follow this," he says. "Your client is your client, not your pocketbook." Clients and other consumers stand to benefit, backers say. DOL-17-0281-K-000349 AO 836892 OSEC 000349 "From a consumer perspective, this is a huge win," says Rob Foregger, co-founder of platform provider NextCapital. Foregger also notes that the industry has diligently prepared to implement this new standard. "While the new fiduciary rule is not perfect, it does help us take a giant step in the right direction," he says. Opponents, however, lamented Acosta's decision. The Insured Retirement Institute said the regulation "is already having harmful impacts on Americans planning for retirement," adding that it is "very disappointed that the entire rule will not be further delayed so a full examination of the rule can be conducted, as directed by President Trump, before it goes into effect." The fiduciary rule, first proposed in 2010 and again in 2015, went through several revisions and lengthy public comment periods. There were days-long hearings attended by investor advocates, industry trade groups, attorneys and CEOsof brokerage firms. The rule also survived multiple lawsuits. Its history now stretches across the administrations of two presidents and three secretaries of labor. After all that, Acosta's message to the industry is "the starting pistol for final preparations" ahead of the implementation date, Renetzky says. Article 15 Obama-era rule on financial advisers to go forward, for now ABC News (AP) Marcy Gordon 5/23 The Trump administration is allowing to go forward an Obama-era rule that puts stricter requirements on professionals who advise retirement savers on their investments. But it's leaving open the possibility that deep changes to the rule will still be made. Wall Street and Republican lawmakers have been pushing against the so-called "fiduciary" rule, which requires that financial pros who charge commissions put their clients' best interests first when advising them on retirement investments. President Donald Trump in February told the Labor Department to delay implementing the rule, due to be phased in starting June 9. But Trump's new labor secretary, Alexander Acosta, said Tuesday the department has decided not to delay the rule while it seeks public input on how to change it. "Respect for the rule of law leads us to the conclusion that this (June 9) date cannot be postponed," Acosta wrote in an op-ed piece in The Wall Street Journal. "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." Americans have about $14 trillion in retirement savings - in 401(k) retirement accounts, other defined-contribution plans such as federal employees' plans and in IRAs. Supporters of the fiduciary rule see it as key to guaranteeing the integrity of the advice they get on where to invest it. The aim of the rule, put in by the Obama administration about a year ago, was to prevent financial advisers from steering clients toward investments with higher commissions and fees that can chip away at retirement savings. The financial industry, on the other hand, has argued that the rule would limit retirees' investment choices by forcing advisers to steer them to low-risk options. Consumer advocates greeted Acosta's announcement, which appeared as a departure from a string of moves in recent months by the administration and Republican lawmakers to ease regulations. The move was "a great victory for Americans saving for retirement," said Dennis Kelleher, the president of Better DOL-17-0281-K-000350 AO 836892 OSEC 000350 Markets, a group that advocates for stricter regulation. "That means the Trump (Labor Department) will now have to properly draft, propose and, if appropriate, finalize a different rule after allowing for full public input and participation." Undoing the fiduciary rule was part of a promised assault by Trump on financial rules put in by President Barack Obama and Democratic lawmakers after the 2008-09 crisis and Great Recession. Trump ordered a government review of the Dodd-Frank financial oversight law, which he has called a "disaster." Major Republican legislation to unwind the Dodd-Frank law, now pointed toward a vote by the U.S. House, would repeal the Labor Department rule. It would not be replaced until the Securities and Exchange Commission came up with a separate rule for all investments, not just retirement assets, prescribing standards for brokers and advisers - and it would have to be close to the SEC'srule. The SECmay be expected to take a friendlier approach to the financial industry than the Labor Department. Acosta concluded his op-ed by saying the Labor Department "will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong." The son of Cuban immigrants, Acosta has been a federal prosecutor, a civil rights chief at the Justice Department and a member of the National Labor Relations Board. He arrived in the Labor post only last month, with relatively little clear record on some of the key pocketbook issues facing the Trump administration. Trump named him to the job after his first choice, former fast food CEO Andrew Puzder, withdrew his name from consideration on the eve of his Senate confirmation vote. Article 16 DOL Rule Date Ensured, Class-action Lawsuits Take Spotlight Advisor Hub Jed Horowitz and Mason Braswell 5/23 Secretary of Labor Secretary Alexander Acosta's acknowledgment that he has no legal basis to prevent the fiduciary rule from taking effect on June 9 has focused proponents and opponents of the rule on how it will be enforced. The securities industry's major concern is that as of January 1, 2018 when the rule's best-interest contract (BIC) exemption takes effect for retirement accounts, customers will be able to participate in class-action lawsuits charging violations of the rule's prudence and loyalty standards that go into effect next month. The cost of such lawsuits has been a major concern of industry trade groups and of companies like Bank of America which is largely prohibiting Merrill Lynch brokers from using the exemption to offer commission-based retirement accounts. It also appears to still be in Secretary Acosta's sightlines. "Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," he wrote in the "Wall Street Journal" op-ed piece on Tuesday. The Labor Department will continue to review the rule to ensure it abides by President Trump's executive order to ensure that regulations do not have harmful consequences, Acosta wrote. "I'll take this as a win but we're not going to stop fighting," said Marnie Lambert, a lawyer in Columbus, Ohio, who is president of the Public Investors Arbitration Bar Association, which represents plaintiffs' lawyers. "The next six months will show a lot of fighting both ways, with people doubling down on why changes don't need to be made or do need to be made." The first phase of the rule taking effect next month requires advisors to abide by customer loyalty and prudence standards, meaning that "advice must be based on the interests of the customer, rather than the competing financial interest of the adviser or firm." DOL-17-0281-K-000351 AO 836892 OSEC 000351 That raises the possibility that a broker who sells a product that is suitable to a customer's goals and risk tolerance but that has a higher commission could be accused of violating the standard. A "Frequently Asked Questions" update on the rule that the DOL released Monday night in parallel with Acosta's essay noted that while brokerage firms can write their best-interest contracts permitting commissions to require an IRA investor to pursue individual claims through arbitration, they "must preserve the investors' ability to bring class action claims in court." Securities industry officials vowed to continue fighting for change despite losing their attempt to delay the fiduciary rule's implementation date. "We hope that upon the Department's completion of its wholesale rule review, they will conclude, as we believe the evidence clearly shows, that dramatic and fundamental changes are appropriate and necessary," wrote Kenneth E. Bentsen, Jr., head of the Securities Industry and Financial Markets Association, who has long battled against the classaction enforcement mechanism. Dale Brown, head of the independent broker -dealer trade group, the Financial Services Institute, said in a statement that the decision not to further extend the DOL fiduciary rule's applicability date "will push the cost of retirement advice and planning services out of the reach of Main Street investors" and promised to "work with Secretary Acosta and Congress and through the legal system to bring clarity to our members." The rule's still-standing enforcement mechanism remains in the focus of consumer groups. "Retirement savers need an enforceable fiduciary standard and a Department of Labor that is prepared to hold firms accountable for compliance," Americans for Financial Reform, a coalition of more than 200 consumer, labor civil rights and business groups, said in a statement that italicized its enforcement focus. The stocks of publicly traded independent and regional brokerage firms were initially battered by Secretary Acosta's decision to let the rule implementation proceed. LPL Financial and Stifel Financial both traded down by more than 3% when the market opened on Tuesday, while Raymond James Financial lost more than 2%. Shares rebounded somewhat, but LPLand Stifel were still down by more than 2% in early afternoon trading while Raymond James was down about .50% while the broader market was in positive territory. Article 17 Labor secretary Alexander Acosta gives DOL fiduciary ru le supporters something to cheer about - at least for now Investment News Mark Schoeff Jr. 5/23 Major parts of the Labor Department fiduciary rule will kick in June 9, but how much of the rest of it will survive remains uncertain. Labor Secretary Alexander Acosta announced in a Wall Street Journal oped Tuesday that the initial implementation date of the rule, which has already been delayed from April 10, will not be extended beyind the June date. He also said that the agency will gather more public comment for a reassessment of the rule that President Donald J. Trump ordered in February. That review could lead to an overhaul of the regulation. Mr. Acosta's decision not to push the implementation deadline beyond June 9 is a victory for supporters of the rule, which will require financial advisers to act in the best interests of their clients in retirement accounts. On that date, two provisions will become applicable. One expands the scope of advisers who must act as fiduciaries and the other establishes impartial conduct standards. Rule opponents wanted the entire rule delayed during the agency's review, which is likely to last until the rule 's final DOL-17-0281-K-000352 AO 836892 OSEC 000352 implementation date of Jan. 1. "We won for now," said Barbara Roper, director of investor protection at the Consumer Federation of America. "We're in a better position than I thought we would be in February. I'm still concerned that key provisions could be gutted." In his oped, Mr. Acosta foreshadowed revisions and used language that is similar to the rhetoric of financial industry opponents, who say that it is too complex and costly and will make advice too expensive for investors with modest assets. "He makes it very clear that this rule is flawed and that there are changes necessary to make it work for the marketplace and consumers," said Jill Hoffman, vice president of government affairs at the Financial Services Roundtable. The Securities Industry and Financial Markets Association indicated that it wants to upend the rule. "We hope that upon the department's completion of its wholesale rule review, they will conclude, as we believe the evidence clearly shows, that dramatic and fundamental changes are appropriate and necessary," SIFMA president and chief executive Kenneth E. Bentsen Jr. said in a statement. But Blaine Aikin, executive chairman of Fi360, a fiduciary training and accreditation firm, said that no matter what happens to the rule it must retain the enforcement mechanism of the so-called best-interest contract and continue to cover individual retirement accounts. "Maintaining the core principles of the rule is vital," Mr. Aikin said on the sidelines of the Fi360 annual conference in Nashville, Tenn. "There can be refinements but not fundamental changes." In framing the review in his oped, Mr. Acosta's used tropes from industry criticisms of the rule, such as claims that it would limit advice and lead to an increase in litigation. "We agree with the guiding principles Secretary Acosta outlined," Financial Services lnstititue president and chief executive Dale Brown said in a statement. That's what concerns Ms. Roper. "As reconsideration goes forward, I hope changes will be based on what is actually happening in the market and not just on mindless repetition of industry talking points," she said. For now, supporters of the rule are celebrating that the initial implementation date will stick at June 9, even as the DOL indicated in a set of frequently asked questions released on Monday that the deadline for full implementation may slip past Jan. 1. "It gives us a chance to move forward with certainty and with real protection for investors," Mr. Aikin said. "It makes it hard to argue that the rule is unworkable." Article 18 The Trump administration won't block an Obama-era consumer protection rule Vax Timothy B. Lee 5/23 In a new op-ed for the Wall Street Journal, Labor Secretary Alexander Acosta announced that he will allow key Obamaera regulations designed to protect individuals from unscrupulous financial advisors to go into effect. That's surprising because the Trump administration had previously signaled that it wanted to roll back the rule. Because the regulations were finalized in the final year of Obama's second term, they haven't actually gone into effect DOL-17-0281-K-000353 AO 836892 OSEC 000353 yet. Key provisions are scheduled to take effect on June 9, and critics hoped that the Trump administration would push back that effective date as it works on a plan to repeal the rules outright. But Acosta now says he has found "no principled legal basis to change the June 9 date." It takes a year or more for an administrative agency to change this kind of rule, and the Trump administration hasn't had time to do it. The Obama regulations require financial advisers to follow the fiduciary rule, a legal standard that means advisers have to always offer advice that's in the best interests of their clients. Right now it's completely legal for an adviser to steer clients toward financial products that pay big commissions to the adviser - even if that means the client will get a lower rate of return on his or her investment. The new rules that take effect next month require advisers to disclose this kind of conflict of interest, and they open them up to lawsuits if they took a commission after giving bad advice. To avoid lawsuits, many firms may shift to a model where they charge customers directly rather than taking commissions from mutual fund companies. "When consumers are not fully informed about the potentials for conflict of interest or hidden fees, the amount they pay for retirement investment goes way up," argues Scott Puritz, an investment adviser at the firm Rebalance IRA who has testified in favor of the Obama approach. Of course, many of the companies earning those hidden fees hated the proposal when the Obama administration started working on it a few years ago. A common argument has been that it would result in many middle-class consumers being unable to get financial advice at all. Earlier this year, the Trump administration picked up this banner, suggesting that getting possibly conflicted advice is better than getting no advice at all. But Puritz says the political landscape has been shifting over the past year, with major industry groups opposing the rule less vehemently than they did in the past. One big reason for this is that big financial services companies like Merrill Lynch, Morgan Stanley, and Wells Fargo have already spent millions of dollars revamping their investment products in anticipation of the new rules taking effect. While most of these companies lobbied against the rule initially, they've become more ambivalent about it now that they've done most of the hard work required to comply with it. All this means that the Obama rule could wind up having a big impact on the industry even if the Trump administration ultimately repeals it in a year or two. And in his Wall Street Journal piece, Acosta is surprisingly equivocal on whether the rule will be repealed, writing only that it "may not align" with Trump's goals. "It is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions," he writes. All of this suggests that Acosta may be envisioning incremental changes to the Obama administration rules rather than full repeal. Article 19 US Labor Secretary says Fiduciary Rule to go ahead on 9 June International Investment Helen Burggraf 5/23 The controversial US "Fiduciary Rule", which would require brokers and others advising on retirement products in the US to act in their clients' best interest, will begin to take effect on 9 June with no further delays, US Labor Secretary Alexander Acosta said on Monday. Acosta said the rule would go into partial effect on 9 June but full implementation next year. would not take place until 1 January However, he stressed that the law is being implemented out of "respect for the rule of law [leading] us to the conclusion that this date cannot be postponed", and said "additional public input on the entire Fiduciary Rule" was "necessary" and DOL-17-0281-K-000354 AO 836892 OSEC 000354 would be sought. As reported, the rule was due to take effect on 9 April, but was delayed in March, a month after the still-new-to-office US president, Donald Trump, called on the Department of Labor to study the rule, to assess whether its implementation would limit investors' access to investment products or advice, cause disruptions in the industry, and/or increase litigation against companies providing such advice and products. Opponents of the rule had until 17 March to submit their comments. 'Respect for the rule of law' Acosta outlined his thinking on the matter in a column posted Monday evening on the website of the Wall Street Journal newspaper, to which a link is helpfully supplied on the Department of Labor's website. Writes Acosta in his piece, in part: "Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's de-regulatory goals. This administration presumes that Americans can be trusted to decide for themselves what is best for them. "The rule's critics say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions. "The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation for a complete delay of the rule. on Jan. 1, 2018. Some have called "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making . Yet the SEChas critical expertise in this area . I hope in this administration the SECwill be a full participant." The fiduciary rule has been heavily criticized by many major financial services industry companies and their representative organizations, as well as the Republican party, for what they say will mean a significant rise in the cost of doing business. However, the debate over the matter has alerted consumers to the fact that those selling them retirement products might not, in fact, have their best interests in mind, something many have said they assumed to have been the case all along. (Currently, US insurance brokers must meet a lesser "suitability standard".) US advisers already held to fiduciary standard Unlike brokers handling retirement products in the US, regulated financial advisers in that market have in fact been held to a "fiduciary standard" since the early 1940s. As the debate over extending this standard to the realm of retirement products began to go public, many of them have spoken out, saying that they could see no reason why being obliged to put their clients' interests ahead of their own when selling them financial products should not be mandatory for those DOL-17-0281-K-000355 AO 836892 OSEC 000355 selling insurance products and retirement plans. Article 20 Acosta Won't Extend DOL Rule Delay Wealth Management David H. Lenok 5/23 Labor Secretary Alexander Acosta announced in a Wall Street Journal Op-ed Monday evening that the Department of Labor won't further delay the June 9 effective date for the fiduciary rule, which will greatly expand the definition of "fiduciary" under the Employee Retirement Income Security Act and the Internal Revenue Code. In explaining his decision, Acosta cited the Administrative Procedures Act, which governs federal rulemaking, stating that he believed it would not allow a further delay. "We ...have found no principled legal basis to change the June 9 date while we seek public input," he wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." Two prongs of the proposed rule, one expanding the definition of who is a fiduciary and another establishing impartial conduct standards, will immediately go into effect when the delay ends on June 9. Acosta didn't rule out further review of the rule, however, noting that, "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so." Such review will continue until the Jan. 1, 2018 final implementation date. Labor Secretary Alexander Acosta announced in a Wall Street Journal Op-ed Monday evening that the Department of Labor won't further delay the June 9 effective date for the fiduciary rule, which will greatly expand the definition of "fiduciary" under the Employee Retirement Income Security Act and the Internal Revenue Code. In explaining his decision, Acosta cited the Administrative Procedures Act, which governs federal rulemaking, stating that he believed it would not allow a further delay. "We ...have found no principled legal basis to change the June 9 date while we seek public input," he wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." Related: DOL Delays Fiduciary Rule By 60 Days Two prongs of the proposed rule, one expanding the definition of who is a fiduciary and another establishing impartial conduct standards, will immediately go into effect when the delay ends on June 9. Acosta didn't rule out further review of the rule, however, noting that, "The Labor Department has concluded that it is necessary to seek additional public input on the entire fiduciary rule, and we will do so." Such review will continue until the Jan. 1, 2018 final implementation date. In a bulletin outlining its approach to phased implementation, the DOL explained. "[D]uring the phased implementation period ... the department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions." The DOL also released a new set of frequently asked questions related to the transition period. Opinion around the industry is mixed, with the complicated emotions felt by many perhaps best illustrated in a conflicted statement from Financial Services Institute President & CEO Dale Brown, who explained: "This decision will make it harder for many Americans to save for a dignified retirement. While we are disappointed in DOL-17-0281-K-000356 AO 836892 OSEC 000356 this latest development, we agree with the guiding principles Secretary Acosta outlined: that Americans should be trusted to make their own decisions about retirement planning advice, products and services they need; that the rule should benefit the investing public, not the plaintiffs' bar; and that the DOL should take full advantage of the SEC's expertise to craft a better rule." Article 21 Dal uncertaintt: What to do now Financial Planning Dan Moisand 5/23 Like many, I was surprised by Secretary of Labor Alexander Acosta's decision to proceed with the June 9th implementation date of the Do L's fiduciary rule. I was not, however, concerned about being able to comply. If advisers follow these guidelines, they won't be, either. There is a simple method for dealing with the confusion and uncertainty surrounding the rule. It isn't easy for some but it will help you survive and thrive. When working with clients, pretend you must defend your advice based on a bona fide fiduciary standard in a real courtroom full of your family, friends, and your other clients. If you do this, you will be thinking like a fiduciary. You will make more defensible recommendations. You will look at products with a more critical eye and you will find yourself continually seeking better ways for your clients. The best advisers already do this - regardless of how they are actually regulated or the form of their compensation. They act as though they are fiduciaries, paid only by their client, every time and all the time. Regardless of what happens to the Do L's rule, the move toward fiduciary is well underway all over the world. Much of the former British empire has banned commissioned income. Clearer lines are being drawn between advice and product distribution. Get ahead of the trend with your thinking and your processes now and you should do well. Article 22 Labor Der1artment to imr1lement Obama's investment adviser rule The Hill Sylvan Lane 5/23 The Labor Department will implement a controversial Obama -era rule for financial advisers on June 9, Secretary Alexander Acosta announced Monday evening in The Wall Street Journal. Acosta wrote that the Labor Department couldn't find a legal basis to delay the "fiduciary" rule beyond June 9, the end date of a review designated by President Trump via executive order earlier this year. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." The Labor Department will begin implementing the rule on June 9, though Acosta said it would continue to explore potential changes to the rule. Firms will be given until 2018 to comply with the rule without penalty. The fiduciary rule, finalized by the Obama Labor Department in 2016, requires certain financial advisers to disclose DOL-17-0281-K-000357 AO 836892 OSEC 000357 potential conflicts of interest to clients. It also expands the types of advisers who are mandated by a "fiduciary" standard to act in their clients' best interests, not their own. Business groups and financial firms detest the rule and challenged it in court soon after it was promulgated. They say the rule raises the costs of financial advisory services with burdensome compliance requirements. The regulatory crush, they argue, would make financial advice too expensive for vulnerable and elderly families. Opponents also say the Labor Department overstepped its legal authority and overruled a peer agency. The Dodd-Frank Act mandated the Securities and Exchange Commission to write the fiduciary rule, but it didn't under former Chair Mary Jo White. The Labor Department stepped in after progressive activists and politicians rallied around the rule they say helps protect consumers from dishonest financial advisers. Article 23 Alexander Acosta 's letter to WSJ has a doub le message on DOL ru le and one long-term o bjective: Gut it RIABiz Brooke Southall 5/23 Brooke's Note: Remember Andrew Puzder? Yes, he was the original DOL Secretary pick who eventually convinced would-be confirmation agents that the third and fourth letters of his last name should be transposed. Where Puzder's exit leaves the fiduciary rule, the DOL's bastardized mission and whether the new appointee prospect is a patsy Alexander Acosta was such a vast upgrade from t he labor antagonist and fast-food soft porn protagonist that nobody raised a finger to block his appointment. Now we get a glimpse into how he plans to keep his mantle of respectability and assuage his bosses. He starts like Rod Rosenstein in that he is publishing a letter with his signature on the bottom. But unlike that now infamous document, this one stands a fighting chance of making everyone happy by making two arguments well -- one that suits the pro-DOL rule crowd and one that makes them shudder. The Department of Labor is allowing its fiduciary rule to go into effect with no fur t her meddling but with a big wink-wink to Wall Street. Labor Secretary Alexander Acosta delivered this bifurcated message of reassurance to the nation's insurers and brokers by means of a carefuly worded op-ed piece in the Wall Street Journal. The piece was distributed to RIABiz ahead of national publication as part of a press release. Though the essay's big and immediate takeaway was that on June 9 the rule gets implemented, Acosta also let the financial industry know that the rule is only being kept alive to more effectively replace it. "The Fiduciary Rule as written may not align with President Trump's deregulatory goals," writes Acosta in the letter. "This administration presumes that Americans can be trusted to decide for themselves what is best for them." At its heart the fiduciary rule is the first legislation that makes it illegal for stockbrokers to put their own interests ahead of clients. The writers of the rule have presumed that Americans can't be trusted to decide their best course in investments because so much information is obscured from them and brokers are often compensated better for executing transactions -- labelled as the implementation of financial advice -- that add unecessary expense . Though Acosta's stay of execution for the rule is laudable given the "relentless pressure from industry lobbyists to freeze implementation," the gesture ultimately rings hollow, according to Micah Hauptman, counsel to the Consumer Federation of America. "Unfortunately, his comments on the substance of the rule - developed without any meaningful consultation with rule supporters - suggest that Secretary Acosta has pre-judged the outcome of the reconsideration and may plan to gut core provisions of the rule that are essential to its effectiveness." DOL-17-0281-K-000358 AO 836892 OSEC 000358 Not Responsive DOL-17-0281-K-000359 AO 836892 OSEC 000359 "If you're wondering why that matters," said Simpson, "it matters where you start. Now, there's so much ill will about starting with healthcare in Congress.... The Democrats are already pissed off because (the GOP) started with repeal and replacement of Obamacare." The NRA's discussions with government officials are ongoing in a number of areas, said Simpson, including on the border adjustment tax, the federal overtime rule and immigration. The border adjustment tax, proposed as part of Republicans' tax overhaul plan, would effectively create a new levy on imports. "If you're importing food, importing any part of your supply chain, there's a big debate in Congress right now about whether to tax that," said Simpson, and the NRA is exploring options for a food and beverage exemption. The Department of Labor's overtime rule, increasing the salary threshold for overtime exemptions, remains in limbo. "It's actually stuck in the courts and the new administration hasn't done anything about it," said Simpson. Conversations continue between the NRA and new Labor Secretary Alexander Acosta on whether it gets dropped completely, "or are you going to adjust and modify it and still implement it in some form." On immigration, Simpson said the NRA is hearing from restaurants around the country about owners and employees being deported, "or their employees being stopped on their way to work." "Let us know if you're hearing about that, if you're experiencing it," said Simpson. " ... This is really serious when it comes to the restaurant industry; we're an industry of diversity and we pride ourselves on that ... if it looks like our employees are being targeted, we need to be able to take action. "Immigration, if it turns out to be a 2018 election issue, Republicans will lose, that's my prediction." Article 26 Obama, Buffett or Trump: who's right about the cost of retirement investing advice? Market Watch Mitch Tuchman 5/23 In a stunning reversal, the Trump administration will not seek to further delay an Obama-era investment rule designed to put an end to costly, conflict-filled retirement advice. The so-called fiduciary rule will require anyone selling retirement investment advice to put their clients' interests first and to plainly disclose fees. It was set to take partial effect on April 10, but the incoming Trump administration had forced a delay until June 9. In an Op-Ed, Donald Trump's Labor Secretary Alexander Acosta gamely made the case for deregulation, as you might expect. Nevertheless, he admitted that the law is not on the side of those who might prefer more delay, namely, retirement investment advisers who benefit from the status quo of murky disclosures and less-than-clear loyalties. "We have carefully reviewed the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote in The Wall Street Journal. Full implementation is scheduled for Jan. 1, 2018. Interestingly, the administration may have painted itself into a corner by seeking a delay in the first place. The law has been tested in multiple courts already, each time resulting in defeats for Wall Street. Seeking a new delay might have pushed the matter right back into the courts and set up yet another defeat. DOL-17-0281-K-000360 AO 836892 OSEC 000360 True cost Much of the debate centers on how much money investors lose to fees from conflicted advice, such as when financial advisers are paid by mutual funds to recommend those funds to clients. Is it $17 billion a year, as the White House contended while Barack Obama was in office? Is it $10 billion a year, as Warren Buffett believes? Or is it really $104 million a year, as the Trump administration argued in favor of the initial 60-day delay? The Obama White House number, $17 billion, is based on the idea that conflicted advice costs retirement savers 1% of their return a year. Plug that into $1.7 trillion in IRA savings and you get $17 billion a year paid out to retirement advisers and consequently lost to retirement savers. Buffett's $10 billion number is the fees charged by active mutual fund managers vs. investing with low-cost index funds. Buffett is leaving out the cost of financial advisers but it's still a lot of money, about 25% less in the typical retirement balance and more than $100 billion over 10 years, as Buffett put it, in total lost retirement savings. At Rebalance IRA, my firm, we estimate that active mutual fund management costs retirement savers on average 1.27% of their assets per year. Over 10 years, that comes to 29.6% of expected investment return, based on data from Vanguard Group. However you slice it, money lost by investors is consequently gained by their financial advisers. Once out of your account those fees compound in value - for your advisor, not you. Law of the land The administration's argument for delaying the rule was that more time was needed to understand the economic impact of the regulation. An extended delay would have been based on the idea that the retirement industry needs more time to adjust. Yet the Trump administration previously had argued that the industry has made substantial accommodations to meet the fiduciary standard. Both of these ideas cannot be true. Either the industry needs more time or it doesn't. Meanwhile, the rule has been delayed for two years, costing investors real money even if you accept the administration's much lower loss estimate. The risk for Trump was that a court might hear that kind of bizarre, inside -out argument and instead immediately terminate the previously granted delay. The Trump administration still has time to try to repeal or review the ruling before next year. Barring any last-minute moves, however, on June 9 the fiduciary standard will be the law of the land. Ai Tri Not Responsive i-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· DOL-17-0281-K-000361 AO 836892 OSEC 000361 Not Responsive DOL-17-0281-K-000362 AO 836892 OSEC 000362 Not Responsive DOL-17-0281-K-000363 AO 836892 OSEC 000363 Not Responsive DOL-17-0281-K-000364 AO 836892 OSEC 000364 Message From: Sent: To: Subject: No author listed...WSJdoes that with some of their op-eds. I'll message Eric Morath and see if he knows anything. And yes, will send PDF tomorrow. From: RA Acosta Sent: Wednesday, May 24, 2017 8:03:23 PM To: Lineberger, Timothy L - OSEC Subject: Re: Evening Clips 5/24 Who wrote this? Canu pis send me a PDF tomorrow from paper. 7 (b)(6) ! On: 2; ~ay 2_017 19:39, "Lineberger, Timothy L - OSEC" Acosta s FIduc Ia ry Duty ;·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·The Labor Secretary Implements an Obama Rule He'll Now Have To Rewrite Wall Street Journal, op-ed, 5/24 Labor Secretary Alexander Acosta said this week that he'll let the Obama Administration's fiduciary rule take effect on June 9 while the agency conducts a thorough public review. Liberals don't know whether to celebrate or complain, but Mr. Acosta is showing more respect for the law than his predecessor did. Mr. Acosta explained in these pages Tuesday that the agency is bound by the Administrative Procedure Act, which requires due process and public comment before issuing or rescinding regulations. This usually take several months, and the law only permits a rule change based on new information. President Trump in February issued an executive order directing the Labor Secretary to complete an economic and legal analysis of the fiduciary rule, which requires brokers of retirement accounts to act in their client's best interest. The rule would in effect bar commissions, increase the cost of advice for savers and price small investors out of the market. The Labor Department in April delayed the rule's date by two months. But the worry is that another delay without new information could invite lawsuits claiming that the agency is acting arbitrarily and thwart revisions. Mr. Acosta writes that the department "found no principled legal basis to change the June 9 date while we seek public input," and that "respect for the rule of law leads us to the conclusion that this date cannot be postponed."However, the rule won't be fully implemented or enforced until January. Mr. Acosta DOL-17-0281-K-000365 AO 836892 OSEC 000365 now has a duty to ensure that the department's career officials who labored on the rule for five years follow due process while legally unwinding it, From: Lineberger, Timothy L - OSEC Sent: Wednesday, May 24, 2017 5:20:16 PM To: RA Acosta Cc: Mannix, Patrick M - OSEC;Smith, Gavin J - OSEC;Hazelton, Jennifer - OSEC;Rogers, Jillian B - OSEC;Palmer, Wayne D -OSEC Subject: Evening Clips 5/24 Evening News Clips: 5/24/17 l__________________________ ---~~-~-e-~-~-~-_i_y_~------------------------------____________ 5/24 ---------------------------------------------------------~-~-! Wall Street Journal WSJ Wealth Adviser Briefing: Fiduciary Rule, Morgan Stanley Recruiting ___! Click Here 5/24 Financial Advisor IQ DOL Supporters Say They'll Sue Over More Delays Click Here 5/24 Financial Advisor Most Americans Favor DOL Rule Without Knowing What it Is, Survey Says Click Here 5/24 Plan Advisor Industry Groups Slam Trump, Acosta for DOL Fiduciary Rule Flop Click Here 5/24 Benefits Pro Fiduciary rule's best interest stays, but plaintiffs' bar checkmated until first of next year Click Here 5/24 National Law Review Update on Labor Department Fiduciary Rule Click Here Not Responsive DOL-17-0281-K-000366 AO 836892 OSEC 000366 Not Responsive DOL-17-0281-K-000367 AO 836892 OSEC 000367 Not Responsive __) i·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·J ; Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 2 WSJ Wealth Adviser Briefing: Fiduciary Rule, Morgan Stanley Recruiting Wall Street Journal Brian Hershberg 5/24 The Labor Department cleared a landmark retirement-savings rule to take effect next month, ending a stretch of uncertainty for brokers and investors after President Donald Trump called for a review of the Obama-era regulation with an eye toward repeal or revision. Still, while DOL Secretary Alexander Acosta preserved the possibility of revision or repeal of the fiduciary rule as the Labor Department continues its economic review, the decision to let the regulation come into effect June 9 effectively DOL-17-0281-K-000368 AO 836892 OSEC 000368 makes it harder to reverse later. "This puts us into an embarrassing predicament if this goes away," said Mark Cresap of Cresap Inc., a small brokerage firm in Radnor, Pa., who said he has had been waiting for resolution to the rule's fate before distributing client disclosures that are written and ready to go. Indeed, with a firm date for the fiduciary rule to come online, brokerages are staking out their position for handling retirement accounts to comply with the rule. To that end, here is a breakdown of the changes among some of the U.S.'s biggest brokerages. Article 3 DOL Supporters Say They'll Sue Over More Delays Financial Advisor IQ Alex Padalka 5/24 In a warning events may have already overtaken, supporters of the Department of Labor's fiduciary rule are taking a cue from the rule's critics, saying they'll take the agency to court if it further delays the rule, Bloomberg writes. Several consumer groups would go after the DOL if it again delays the rule, Micah Hauptman, financial services counsel at the Washington-based Consumer Federation of America, tells Bloomberg. Labor Secretary Alexander Acosta recently said the rule will go into effect, as scheduled, on June 9 with no further delays. But then - given Acosta's references to the need for more public comment and the SEC'sparticipation in drafting another version - the DOL rule retains an air of impermanence. The rule requires retirement-account advisors to adhere to the fiduciary standard. It was originally scheduled to go into effect in April but was delayed following a memorandum from President Donald Trump. Opponents of the rule, including several insurance and financial-industry groups, have mounted various legal challenges to its implementation. In case of a delay, supporters of the rule would now likely bring a suit under the Administrative Procedure Act, with its specifics dependent on the DOL's actions toward rescinding or delaying the rule, Erin M. Sweeney, an employee benefits attorney of counsel with Miller & Chevalier, tells Bloomberg. If the DOL pulls the rule without a public comment period, the legal challenge would target that, the lawyer says. Likewise, a lawsuit could invoke the APA if the DOL issues a proposed rule to suspend or revoke its rule, according to Sweeney. In either case, another delay would be "an extremely heavy lift," she tells the news service. Challenges to suspending regulations have succeeded before, according to Sweeney. Under U.S. President Ronald Reagan the Environmental Protection Agency was successfully sued over delaying its rules indefinitely, she tells Bloomberg. But Edward Zelinsky, a law professor at Yeshiva University in New York, tells Bloomberg such instances are rare, and a lawsuit challenging a DOL-rule delay would likely have "very little chance of success." Meanwhile, three powerful Democratic senators are also warning the DOL about permanently shelving the rule, according to Reuters. Sens. Patty Murray, D-Wash., Elizabeth Warren, D-Mass., and Cory Booker, D-N.J., wrote a letter to Acosta saying the DOL faces "steep legal standards" in justifying any further delays, revisions or attempts to scrap the rule, Reuters reports. DOL-17-0281-K-000369 AO 836892 OSEC 000369 Article 4 Most Americans Favor DOL Rule Without Knowing What it Is, Survey Says Financial Advisor Christopher Robbins 5/24 As the applicability date of the Department of Labor's fiduciary rule approaches, Americans overwhelmingly favor the rule's chief intent, a new survey says. According to "In Whose Best Interest? (Part 2)," a 2017 report from Sunnyvale, Calif.-based Financial Engine, 93 percent of Americans believe it's important that all financial advisors be legally required to put clients' best interests first when providing retirement advice. The fiduciary rule would expand the conflict-of-interest retirement plans, including IRAs. restrictions already applied to advice within 401(k) plans to all After it was delayed 60 days after its original April 10 applicability date, U.S. Labor Secretary Alexander Acosta wrote on Wednesday that most of the rule's provisions will become applicable on June 9. Acosta's statement effectively ends a two-year debate about the rule's impact on the financial services industry and its effectiveness in protecting consumers. Will consumers notice? More than two-thirds of the survey's respondents, 68 percent, had never even heard of the fiduciary rule. According to the Financial Engines survey, most consumers believe that they're already protected from conflicted advice: 53 percent of the survey's respondents mistakenly believe that advisors are legally required to put their interest first when making retirement investment recommendations, up from 46 percent in 2016. Only 21 percent could correctly identify the difference between a fiduciary advisor and a non-fiduciary advisor. The survey respondents also said that they were likely to ask more questions about fiduciary advice in the future and act if their advisor was not a fiduciary. Only 12 percent said they would continue working with the same non-fiduciary advisor in the same capacity. Almost a quarter of respondents, 23 percent, said they would switch advisors if they found out their current advisor was not a fiduciary, and another 18 percent said they would end their work with financial advisors if they were not receiving fiduciary advice. A little more than half the respondents, 53 percent, felt that advisors should be regulated by the government. Financial Engines commissioned ORC International to poll 1,025 adults 18 years of age and older in March. Article 5 Industry GrouQSSlam TrumQ, Acosta for DOL Fiduciary Rule FloQ Plan Advisor John Manganaro 5/24 The U.S. Department of Labor (DOL) has confirmed that it will not seek to further delay the June 9, 2017, applicability date of the new fiduciary rule defining investment advice and establishing the best interest contract exemption (BICE) and other related exemptions under the Employee Retirement Income Security Act (ERISA). The effect is that the policing power of the DOL will be greatly expanded, reaching over individual retirement accounts (IRA) and the vast majority of investment and advice providers to defined contribution (DC) retirement plans. Suffice it to say, this is a surprising outcome given that the new fiduciary rule and its accompanying exemptions are signature Obama-era regulatory actions that have been flatly criticized by the new president and many members of the DOL-17-0281-K-000370 AO 836892 OSEC 000370 Republican Congressional majority. It stands to reason that the administration won't aggressively enforce the new standards, but it must be observed that the fiduciary rule effectively establishes new opportunities not just for the DOL to pursue litigation-but also for broader private litigation alleging fiduciary breaches. In other words, just because the DOL will not aggressively enforce this new rulemaking, this does little to address the fact that private litigators will also have a wider opportunity to allege fiduciary breaches under ERISA. Timely analysis shared by the Wagner Law Group rehearses some other considerations for retirement industry professionals. As the analysis lays outs, technically speaking the DOL has formally started the implementation process, issuing a temporary enforcement policy and a new set of Conflict of Interest FAQs that focus on the transition period stretching from June 9, 2017, to January 1, 2018. This action follows the DOL's April 7, 2017, final rule which delayed the applicability date by 60 days from April 10, 2017, to June 9, 2017. "As a result, June 9 is the date on which persons who provide investment advice (including rollover advice) for a fee or other compensation (direct or indirect) will be deemed to be fiduciaries under the fiduciary rule. During the shortened transition period (June 9, 2017 to January 1, 2018), financial institutions wishing to rely on the BICE,the Class Exemption for Principal Transactions or Prohibited Transaction Exemption 84-24 in order to receive variable compensation related to the advice they give, need only comply with the respective Impartial Conduct Standards (ICS) in these exemptions," the Wagner analysis explains. "For the BICE,the ICSconsists of three component standards: (i) receiving no more than reasonable compensation, (ii) refraining from making materially misleading statements, and (iii) providing advice in accordance with the best interest standard of care. The best interest standard has two chief components: prudence and loyalty." The FAQs state that under the prudence standard, advice given must meet a professional standard of care as set forth in the BICE,and that "under the loyalty standard, the advice must be based on the interests of the customer, rather than the competing financial interest of the adviser or the firm." The Wagner Law Group says many clients are asking what it means to comply with the impartial conduct standards in isolation when other related requirements-contracts, written disclosures and representations, designation of a person or persons responsible for addressing material conflicts of interest and ensuring adherence to the ICS-have been waived until January 1, 2018. "The FAQs clarify that conflicts of interest may exist during the transition period without rendering the BICEunavailable or resulting in a failure to comply with the ICS," the analysis suggests. "During the transition period, the DOL expects financial institutions to adopt such policies and procedures as they reasonably conclude are necessary to ensure compliance with the ICS; however, they have the flexibility to choose precisely how to accomplish this. Thus, to the extent not already done, financial institutions should continue to review current compensation structures, identify conflicts of interest, and implement conflict mitigation strategies. Having some form of policy documentation that is aligned with the ICSin place by June 9 may be helpful in demonstrating legal compliance." Changes to other pre-existing class exemptions amended by the DOL in connection with the fiduciary rule (PTEs75-1, 77-4, 80-83, 83-1 and 86-128) are applicable and in full effect on June 9, 2017. June 9 is also the date on which the definition of investment education under DOL Interpretive Bulletin 96-1 (IB 96-1) is no longer applicable. As the Wagner analysis explains, "While the 'safe harbor' in IB 96-1 covers participant education only, investment education under the fiduciary rule includes investment education delivered to plan sponsors and IRA owners as well. Asset allocation models and interactive materials must not recommend or reference a specific investment option, unless they are being provided to a defined contribution plan with investment options that are subject to oversight by a plan fiduciary. Additionally, investment options with similar return-risk characteristics must be identified, and a statement must be provided explaining how more information can be obtained on investment options. Investment advisory agreements and disclosures pertaining to education services, asset allocation models and interactive materials may need to be reviewed and revised to reflect this new definition." DOL-17-0281-K-000371 AO 836892 OSEC 000371 Responses from industry groups have generally voiced frustration tha t , after so many suggestions from the administration and Congress that stopping the fiduciary rule was a priority, somehow the rulemaking is still pushing ahead. Many of the statements are carefully crafted to leave open the possibility of further working with the DOL and the Securities and Exchange Commission (SEC)to revise or replace the rulemaking during the transition period. SIFMA, for example, released a statement from Kenneth Bentsen, Jr., president and CEO. He notes that SIFMA "has long supported the creation of a best interest standard for brokers who provide personalized investment advice, and we continue to believe that the SECis the appropriate regulator to do so ... While we are disappointed that the Department of Labor has chosen not to further delay the rule until the Department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input ... We hope that upon the Department's completion of its wholesale rule review, they will conclude, as we believe the evidence clearly shows, that dramatic and fundamental changes are appropriate and necessary." The Insured Retirement Institute (IRI) sounded a similar note in commentary from President and CEO Cathy Weatherford: "IRI remains committed to supporting a best interest standard for financial professionals; however, the Department of Labor's fiduciary rule is already having harmful impacts on Americans planning for retirement ... We commend Secretary Acosta for his continuing commitment to seek and examine public comment on whether to revise or rescind the rule and to collaborate with the SECduring this process. IRI looks forward to working the Department of Labor, the SECand Congress to develop a best interest standard of care that enables all Americans to achieve a secure and dignified retirement." On the likelihood of SECintervention, Jamie Hopkins, Retirement Income Program Co-Director at The American College, suggests providers should not hold out much hope for an immediate move. "The SECwas granted authority to promulgate a fiduciary investment standard; however, they have yet to act," he says. "While the rule is said to be in the works, no one expects to see a final rule anytime soon. This creates another level of uncertainty. Some critics of the DOL fiduciary rule argue that the DOL should wait until the SECcreates a rule so that the two rules do not conflict and that the SECis really the correct agency to develop such a rule. However, a potential repeal of Dodd-Frank or another deregulatory move could strip the SECof their power to create a rule. So today, the SEC'srole and potential creation of a different fiduciary rule remains up in the air." Article 6 Fiduciary ru le's best interest stays, but plaintiffs' bar checkmated unti l first of next year Benefits Pro Nick Thornton 5/24 In opting to not attempt another delay of the fiduciary rule's impartial conduct standards, Labor Secretary Alexander Acosta showed deference to the rule of law. That has frustrated the many opponents of the rule who had called on Acosta to delay the June 9 implementation date of the impartial conduct standards until Labor can complete the updated review of the regulation ordered by President Trump . "I am deeply disappointed that the fiduciary rule is not being delayed further, which I believe fails to follow the clear directive of the President of the United States," said Rep. Ann Wagner, R-MO, in a statement. For several years, Wagner has spearheaded the effort to block the rule from taking affect by sponsoring legislation that would require the Securities and Exchange Commission to be the lead regulator in promulgating a uniform fiduciary standard. The impartial conduct standards that will go into effect at 11:59 p.m. on June 9 require that advice providers to IRA and 401(k) investors act in the best interest of investors, receive only reasonable compensation, and not make misleading statements to investors. DOL-17-0281-K-000372 AO 836892 OSEC 000372 In his decision to keep implementation of those standards in place, Sec. Acosta said there were limited options to issue a delay to the June 9 requirements under the Adminis t rative Procedure Act, t he statute t hat governs federal rule-making. "From the consumer perspective, this is a huge win," said Rob Foregger, co-founder of Chicago-based NextCapital, which provides digital advice platforms for 401(k) and retail investment advisors. "It is imperative that t he retirement industry provides transparent and cost -effective financial services, which align with the client's best interests ." While Foregger and other proponents of the rule are heartened by Acosta's decision to not flout the notice and comment requirements under the APA and issue another delay, there is the chance that this week's news will only prove a Pyrrhic victory for fiduciary advocates. Acosta's opinion editorial explaining his decision to keep the June 9 implementation date in place, and an FAQ published by the agency on the same day, leave the door open for a delay of the January 1, 2018 full implementation date, and even the possibility that the rule's existing compliance requirements and enforcement mechanisms are substantially revised . Advocates of the fiduciary rule have expressed concern that could lead to a watered-down fiduciary standard in name only. rule-an un-enforceable In the op-ed, Acosta noted the importance of retirement investors' need for prudent advice but said the rule as currently written "limits choice and benefits lawyers ." That unsubtle hint suggests the rule's provision that allows investors to bring class-action lawsuits against investment providers will have to stand up to new scrutiny . Obama administration regulators openly touted that provision as the rule's primary enforcement mechanism. For the time being, the plaintiffs' bar should be kept at bay, as written warranties of fiduciary status, and the rule's Best Interest Contact Exemption, which includes the class-action provision, are not required until the first of next year . Moreover, Labor signaled it would not be enforcing even the impartial conduct standards until January 2018, so long as firms are working "diligently and in good faith" to give fiduciary advice. That "essentially ensures that neither the DOL nor private litigants will be able to bring a lawsuit to enforce the rule until after January 1, 2018," said Erin Sweeney, an attorney with Miller & Chevalier, in a statement. After that date, all bets are off, assuming the January 1, 2018 deadline holds up. In the most recent Labor FAQ, regulators raised the prospect that a delay of the full rule would allow for "more affective retirement investor assistance" as industry completes the rollout of new investment products, like so-called clean shares of mutual funds designed to mitigate advisor conflicts. Article 7 Update on Labor Department Fiduciary Rule National Law Review David B. Hamilton 5/24 We first began writing about the DOL Fiduciary Rule two years ago. Since then, the status of adoption of the Rule has been uncertain, even could be characterized as a roller coaster ride. The push from the Obama administration was slowed down by the 2016 Presidential election. Certainly, if Hillary Clinton had been elected, the regulatory path would have been smoother for adoption, even in the face of lawsuit challenges. President Trump's election has resulted in some more uncertainty; the delay in the appointment of Sec. Acosta may have contributed to the uncertainty . So, now where do we stand? Strictly from the regulatory standpoint, the path seems clear: on June 9, the DOL's regulatory change takes effect, expanding the definition of fiduciary investment advice, holding service providers and DOL-17-0281-K-000373 AO 836892 OSEC 000373 plan sponsors accountable to the regulations included in ERISA. Simply put, that fiduciary obligation means that service providers subject to the rule must act in the best interests of their clients. In the event of a conflict of interest, the service provide must meet certain exemptions or avoid offering fiduciary advice. We are on the cusp of a fundamental change. Though some providers have already begun the internal changes in order to meet the Rule, some have resisted; some seek the safe harbor of temporary exemptions; some have joined the legislative and litigation challenges to the Rule. What can stop the implementation? Here are some possibilities: Sec. Acosta takes an action through DOL to freeze the June 9 implementation. As of this writing, there are growing concerns in Congress that Sec. Acosta will take last minute actions. On May 19, Sen. Patty Murray, joined by Sens. Warren and Booker, wrote to Sec. Acosta seeking assurance that he would take no action. On May 22, however, Sec. Acosta announced that he no reason to delay the "soft open" while the DOL seeks public input. Notwithstanding, will President Trump "overrule" Sec. Acosta through a new Executive Order? The Financial Choice Act, approved by the House Financial Services Committee, on May 4 both overhauls the Dodd-Frank Act and repeals the DOL Fiduciary Rule. Passage of the bill before or after June 9 would present obstacles or more to the implementation of the Rule. To date, legal challenges to the Rule have not been successful. It is reasonable to predict that the existing legal challenges will continue at district court and appellate levels. Conversely, it is reasonable to predict that further delay of implementation of the Rule could result in lawsuits seeking to enforce the Rule, likely through a lawsuit brought pursuant to the Administrative Procedures Act. In the face of this uncertainty, some providers have acted as though the Rule will be implemented. "Limited purpose IRAs" is a term that has been coined to provide options to investors to comply with the Rule. Other providers have crossed fingers and are hoping for further delay or repeal of the Rule. Regardless, the costs to providers have been enormous. Predictions here are dangerous. And, there are so many possibilities that the predictions may not be valuable. Perhaps by our next newsletter there will be more clarity. Perhaps not. Not Responsive DOL-17-0281-K-000374 AO 836892 OSEC 00037 4 Not Responsive DOL-17-0281-K-000375 AO 836892 OSEC 000375 Not Responsive DOL-17-0281-K-000376 AO 836892 OSEC 000376 Not Responsive DOL-17-0281-K-000377 AO 836892 OSEC 000377 Not Responsive DOL-17-0281-K-000378 AO 836892 OSEC 000378 Not Responsive DOL-17-0281-K-000379 AO 836892 OSEC 000379 Not Responsive DOL-17-0281-K-000380 AO 836892 OSEC 000380 Message Lineberger, Timothy L - OSECj From: [ (b)(6) •-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·r·:-::.._. Sent: To: Subject: Attachments: ! ( b) (6) ! i ___________________________________________________________________________________________________________________________ , 5/25/2017 8:38:54 AM i----~-~-~c:_~~~a_j___ __________________________________________ (~)_(~l_(6)l6r·-·-·-·-·-·-·-·-·-·-·-·-·-·-·__j_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_· WSJ 5/25 Op-ed PDF WSJ Op-Ed 5-25.pdf PDF attached (appeared on page A18)" --Tim Tim Lineberger Department of Labor L____________________ (b )(6) -·-·-·-·-·-·-·-·-·-· I From: RAAcosta Sent: Wednesday,May 24, 2017 8:03 PM To: Lineberger,Timothy L - OSEC Subject: Re: EveningClips 5/24 Who wrote this? Canu pls send me a PDF tomorrow from paper. On: 24 May 2017 19:39, "Lineberger, Timothy L - OSEC" (b)(6) wrote: Acosta's Fiduciary Duty The Labor Secretary Implements an Obama Rule He'll Now Have To Rewrite Wall Street Journal, op-ed, 5/24 Labor Secretary Alexander Acosta said this week that he'll let the Obama Administration's fiduciary rule take effect on June 9 while the agency conducts a thorough public review. Liberals don't know whether to celebrate or complain, but Mr. Acosta is showing more respect for the law than his predecessor did" Mr. Acosta explained in these pages Tuesday that the agency is bound by the Administrative Procedure Act, which requires due process and public comment before issuing or rescinding regulations. This usually take several months, and the law only permits a rule change based on new information. President Trump in February issued an executive order directing the Labor Secretary to complete an economic and legal analysis of the fiduciary rule, which requires brokers of retirement accounts to act in their client's best interest, The rule would in effect bar commissions, increase the cost of advice for savers and price small investors out of the market, The Labor Department in April delayed the rule's date by two months. But the worry is that another delay without new information could invite lawsuits claiming that the agency is acting arbitrarily and thwart DOL-17-0281-K-000381 AO 836892 OSEC 000381 revisions, Mr, Acosta writes that the department "found no principled legal basis to change the June 9 date while we seek public input," and that "respect for the rule of law leads us to the conclusion that this date cannot be postponed!'However, the rule won't be fully implemented or enforced until January, Mr. Acosta now has a duty to ensure that the department's career officials who labored on the rule for five years follow due process while legally unwinding it, From: Lineberger, Timothy L - OSEC Sent: Wednesday, May 24, 2017 5:20:16 PM To: RA Acosta Cc: Mannix, Patrick M - OSEC;Smith, Gavin J - OSEC;Hazelton, Jennifer - OSEC;Rogers, Jillian B - OSEC;Palmer, Wayne D -OSEC Subject: Evening Clips 5/24 Evening News Clips: 5/24/17 ~,~~ -~ L NofRespon~s,ive ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- = ~ ~, ~, ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· =•'. LL i ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-j 5/24 Wall Street Journal WSJ Wealth Adviser Briefing: Fiduciary Rule, Morgan Stanley Recruiting Click Here 5/24 Financial Advisor IQ DOL Supporters Say They'll Sue Over More Delays Click Here 5/24 Financial Advisor Most Americans Favor DOL Rule Without Knowing What it Is, Survey Says Click Here 5/24 Plan Advisor Industry Groups Slam Trump, Acosta for DOL Fiduciary Rule Flop Click Here 5/24 Benefits Pro Fiduciary rule's best interest stays, but plaintiffs' bar checkmated until first of next year Click Here 5/24 National Law Review Update on Labor Department Fiduciary Rule Click Here Not Responsive DOL-17-0281-K-000382 AO 836892 OSEC 000382 Not Responsive DOL-17-0281-K-000383 AO 836892 OSEC 000383 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 2 WSJ Wealth Adviser Briefing: Fiduciary Rule, Morgan Stanley Recruiting Wall Street Journal Brian Hershberg 5/24 The Labor Department cleared a landmark retirement-savings rule to take effect next month, ending a stretch of DOL-17-0281-K-000384 AO 836892 OSEC 000384 uncertainty for brokers and investors after President Donald Trump called for a review of the Obama -era regulation with an eye toward repeal or revision. Still, while DOL Secretary Alexander Acosta preserved the possibility of revision or repeal of the fiduciary rule as the Labor Department continues its economic review, the decision to let the regulation come into effect June 9 effectively makes it harder to reverse later. "This puts us into an embarrassing predicament if this goes away," said Mark Cresap of Cresap Inc., a small brokerage firm in Radnor, Pa., who said he has had been waiting for resolution to the rule's fate before distributing client disclosures that are written and ready to go. Indeed, with a firm date for the fiduciary rule to come online, brokerages are staking out their position for handling retirement accounts to comply with the rule. To that end, here is a breakdown of the changes among some of the U.S.'s biggest brokerages. Article 3 DOL Supporters Say They'll Sue Over More Delays Financial Advisor IQ Alex Padalka 5/24 In a warning events may have already overtaken, supporters of the Department of Labor's fiduciary rule are taking a cue from the rule's critics, saying they'll take the agency to court if it further delays the rule, Bloomberg writes. Several consumer groups would go after the DOL if it again delays the rule, Micah Hauptman, financial services counsel at the Washington -based Consumer Federation of America, tells Bloomberg. Labor Secretary Alexander Acosta recently said the rule will go into effect, as scheduled, on June 9 with no further delays. But then - given Acosta's references to the need for more public comment and the SEC'sparticipation in drafting another version - the DOL rule retains an air of impermanence. The rule requires retirement-account advisors to adhere to the fiduciary standard. It was originally scheduled to go into effect in April but was delayed following a memorandum from President Donald Trump. Opponents of the rule, including several insurance and financial-industry groups, have mounted various legal challenges to its implementation. In case of a delay, supporters of the rule would now likely bring a suit under the Administrative Procedure Act, with its specifics dependent on the DOL's actions toward rescinding or delaying the rule, Erin M. Sweeney, an employee benefits attorney of counsel with Miller & Chevalier, tells Bloomberg. If the DOL pulls the rule without a public comment period, the legal challenge would target that, the lawyer says. Likewise, a lawsuit could invoke the APA if the DOL issues a proposed rule to suspend or revoke its rule, according to Sweeney. In either case, another delay would be "an extremely heavy lift," she tells the news service. Challenges to suspending regulations have succeeded before, according to Sweeney. Under U.S. President Ronald Reagan the Environmental Protection Agency was successfully sued over delaying its rules indefinitely, she tells Bloomberg. But Edward Zelinsky, a law professor at Yeshiva University in New York, tells Bloomberg such instances are rare, and a lawsuit challenging a DOL-rule delay would likely have "very little chance of success." Meanwhile, three powerful Democratic senators are also warning the DOL about permanently shelving the rule, according to Reuters. DOL-17-0281-K-000385 AO 836892 OSEC 000385 Sens. Patty Murray, D-Wash., Elizabeth Warren, D-Mass., and Cory Booker, D-N.J., wrote a letter to Acosta saying the DOL faces "steep legal standards" in justifying any further delays, revisions or attempts to scrap the rule, Reuters reports. Article 4 Most Americans Favor DOL Rule Without Knowing What it Is, Survey Says Financial Advisor Christopher Robbins 5/24 As the applicability date of the Department of Labor's fiduciary rule approaches, Americans overwhelmingly favor the rule's chief intent, a new survey says. According to "In Whose Best Interest? (Part 2)," a 2017 report from Sunnyvale, Calif.-based Financial Engine, 93 percent of Americans believe it's important that all financial advisors be legally required to put clients' best interests first when providing retirement advice. The fiduciary rule would expand the conflict-of-interest retirement plans, including IRAs. restrictions already applied to advice within 401(k) plans to all After it was delayed 60 days after its original April 10 applicability date, U.S. Labor Secretary Alexander Acosta wrote on Wednesday that most of the rule's provisions will become applicable on June 9. Acosta's statement effectively ends a two-year debate about the rule's impact on the financial services industry and its effectiveness in protecting consumers. Will consumers notice? More than two-thirds of the survey's respondents, 68 percent, had never even heard of the fiduciary rule. According to the Financial Engines survey, most consumers believe that they're already protected from conflicted advice: 53 percent of the survey's respondents mistakenly believe that advisors are legally required to put their interest first when making retirement investment recommendations, up from 46 percent in 2016. Only 21 percent could correctly identify the difference between a fiduciary advisor and a non-fiduciary advisor. The survey respondents also said that they were likely to ask more questions about fiduciary advice in the future and act if their advisor was not a fiduciary. Only 12 percent said they would continue working with the same non-fiduciary advisor in the same capacity. Almost a quarter of respondents, 23 percent, said they would switch advisors if they found out their current advisor was not a fiduciary, and another 18 percent said they would end their work with financial advisors if they were not receiving fiduciary advice. A little more than half the respondents, 53 percent, felt that advisors should be regulated by the government. Financial Engines commissioned ORC International to poll 1,025 adults 18 years of age and older in March. Article 5 Industry GrouQSSlam TrumQ, Acosta for DOL Fiduciary Rule FloQ Plan Advisor John Manganaro 5/24 The U.S. Department of Labor (DOL) has confirmed that it will not seek to further delay the June 9, 2017, applicability date of the new fiduciary rule defining investment advice and establishing the best interest contract exemption (BICE) and other related exemptions under the Employee Retirement Income Security Act (ERISA). DOL-17-0281-K-000386 AO 836892 OSEC 000386 The effect is that the policing power of the DOL will be greatly expanded, reaching over individual retirement accounts (IRA) and the vast majority of investment and advice providers to defined contribution (DC) retirement plans. Suffice it to say, this is a surprising outcome given that the new fiduciary rule and its accompanying exemptions are signature Obama -era regulatory actions that have been flatly criticized by the new president and many members of the Republican Congressional majority. It stands to reason that the administration won't aggressively enforce the new standards, but it must be observed that the fiduciary rule effectively establishes new opportunities not just for the DOL to pursue litigation-but also for broader private litigation alleging fiduciary breaches. In other words, just because the DOL will not aggressively enforce this new rulemaking, this does little to address the fact that private litigators will also have a wider opportunity to allege fiduciary breaches under ERISA. Timely analysis shared by the Wagner Law Group rehearses some other considerations for retirement industry professionals. As the analysis lays outs, technically speaking the DOL has formally started the implementation process, issuing a temporary enforcement policy and a new set of Conflict of Interest FAQs that focus on the transition period stretching from June 9, 2017, to January 1, 2018. This action follows the DOL's April 7, 2017, final rule which delayed the applicability date by 60 days from April 10, 2017, to June 9, 2017. "As a result, June 9 is the date on which persons who provide investment advice (including rollover advice) for a fee or other compensation (direct or indirect) will be deemed to be fiduciaries under the fiduciary rule. During the shortened transition period (June 9, 2017 to January 1, 2018), financial institutions wishing to rely on the BICE,the Class Exemption for Principal Transactions or Prohibited Transaction Exemption 84-24 in order to receive variable compensation related to the advice they give, need only comply with the respective Impartial Conduct Standards (ICS) in these exemptions," the Wagner analysis explains. "For the BICE,the ICSconsists of three component standards: (i) receiving no more than reasonable compensation, (ii) refraining from making materially misleading statements, and (iii) providing advice in accordance with the best interest standard of care. The best interest standard has two chief components: prudence and loyalty." The FAQs state that under the prudence standard, advice given must meet a professional standard of care as set forth in the BICE,and that "under the loyalty standard, the advice must be based on the interests of the customer, rather than the competing financial interest of the adviser or the firm ." The Wagner Law Group says many clients are asking what it means to comply with the impartial conduct standards in isolation when other related requirements-contracts, written disclosures and representations, designation of a person or persons responsible for addressing material conflicts of interest and ensuring adherence to the !CS-have been waived until January 1, 2018. "The FAQs clarify that conflicts of interest may exist during the transition period without rendering the BICEunavailable or resulting in a failure to comply with the ICS," the analysis suggests. "During the transition period, the DOL expects financial institutions to adopt such policies and procedures as they reasonably conclude are necessary to ensure compliance with the ICS; however, they have the flexibility to choose precisely how to accomplish this. Thus, to the extent not already done, financial institutions should continue to review current compensation structures, identify conflicts of interest, and implement conflict mitigation strategies. Having some form of policy documentation that is aligned with the ICSin place by June 9 may be helpful in demonstrating legal compliance." Changes to other pre-existing class exemptions amended by the DOL in connection with the fiduciary rule (PTEs75 -1, 77-4, 80-83, 83-1 and 86-128) are applicable and in full effect on June 9, 2017. June 9 is also the date on which the definition of investment education under DOL Interpretive Bulletin 96-1 (IB 96-1) is no longer applicable. As the Wagner analysis explains, "While the 'safe harbor' in IB 96-1 covers participant education only, investment education under the fiduciary rule includes investment education delivered to plan sponsors and IRA owners as well. Asset allocation models and interactive materials must not recommend or reference a specific investment option, unless they are being provided to a defined contribution plan with investment options that are subject to oversight by a plan DOL-17-0281-K-000387 AO 836892 OSEC 000387 fiduciary. Additionally, investment options with similar return-risk characteristics must be identified, and a statement must be provided explaining how more information can be obtained on investment options. Investment advisory agreements and disclosures pertaining to education services, asset allocation models and interactive materials may need to be reviewed and revised to reflect this new definition." Responses from industry groups have generally voiced frustration that, after so many suggestions from the administration and Congress that stopping the fiduciary rule was a priority, somehow the rulemaking is still pushing ahead. Many of the statements are carefully crafted to leave open the possibility of further working with the DOL and the Securities and Exchange Commission (SEC)to revise or replace the rulemaking during the transition period. SIFMA, for example, released a statement from Kenneth Bentsen, Jr., president and CEO. He notes that SIFMA "has long supported the creation of a best interest standard for brokers who provide personalized investment advice, and we continue to believe that the SECis the appropriate regulator to do so ... While we are disappointed that the Department of Labor has chosen not to further delay the rule until the Department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input ... We hope that upon the Department's completion of its wholesale rule review, they will conclude, as we believe the evidence clearly shows, that dramatic and fundamental changes are appropriate and necessary." The Insured Retirement Institute (IRI) sounded a similar note in commentary from President and CEO Cathy Weatherford: "IRI remains committed to supporting a best interest standard for financial professionals; however, the Department of Labor's fiduciary rule is already having harmful impacts on Americans planning for retirement ... We commend Secretary Acosta for his continuing commitment to seek and examine public comment on whether to revise or rescind the rule and to collaborate with the SECduring this process. IRI looks forward to working the Department of Labor, the SECand Congress to develop a best interest standard of care that enables all Americans to achieve a secure and dignified retirement." On the likelihood of SECintervention, Jamie Hopkins, Retirement Income Program Co-Director at The American College, suggests providers should not hold out much hope for an immediate move. "The SECwas granted authority to promulgate a fiduciary investment standard; however, they have yet to act," he says. "While the rule is said to be in the works, no one expects to see a final rule anytime soon. This creates another level of uncertainty. Some critics of the DOL fiduciary rule argue that the DOL should wait until the SECcreates a rule so that the two rules do not conflict and that the SECis really the correct agency to develop such a rule. However, a potential repeal of Dodd-Frank or another deregulatory move could strip the SECof their power to create a rule. So today, the SEC'srole and potential creation of a different fiduciary rule remains up in the air." Article 6 Fiduciary rule's best interest stays, but plaintiffs' bar checkmated until first of next year Benefits Pro Nick Thornton 5/24 In opting to not attempt another delay of the fiduciary rule's impartial conduct standards, Labor Secretary Alexander Acosta showed deference to the rule of law. That has frustrated the many opponents of the rule who had called on Acosta to delay the June 9 implementation date of the impartial conduct standards until Labor can complete the updated review of the regulation ordered by President Trump. "I am deeply disappointed that the fiduciary rule is not being delayed further, which I believe fails to follow the clear directive of the President of the United States," said Rep. Ann Wagner, R-MO, in a statement. For several years, Wagner has spearheaded the effort to block the rule from taking affect by sponsoring legislation that would require the Securities and Exchange Commission to be the lead regulator in promulgating a uniform fiduciary standard. DOL-17-0281-K-000388 AO 836892 OSEC 000388 The impartial conduct standards that will go into effect at 11:59 p.m. on June 9 require that advice providers to IRA and 401(k) investors act in the best interest of investors, receive only reasonable compensation, and not make misleading statements to investors. In his decision to keep implementation of those standards in place, Sec. Acosta said there were limited options to issue a delay to the June 9 requirements under the Administrative Procedure Act, the statute that governs federal rule-making. "From the consumer perspective, this is a huge win," said Rob Foregger, co-founder of Chicago-based NextCapital, which provides digital advice platforms for 401(k) and retail investment advisors. "It is imperative that the retirement industry provides transparent and cost-effective financial services, which align with the client's best interests." While Foregger and other proponents of the rule are heartened by Acosta's decision to not flout the notice and comment requirements under the APA and issue another delay, there is the chance that this week's news will only prove a Pyrrhic victory for fiduciary advocates. Acosta's opinion editorial explaining his decision to keep the June 9 implementation date in place, and an FAQ published by the agency on the same day, leave the door open for a delay of the January 1, 2018 full implementation date, and even the possibility that the rule's existing compliance requirements and enforcement mechanisms are substantially revised. Advocates of the fiduciary rule have expressed concern that could lead to a watered-down fiduciary standard in name only. rule-an un-enforceable In the op-ed, Acosta noted the importance of retirement investors' need for prudent advice but said the rule as currently written "limits choice and benefits lawyers." That unsubtle hint suggests the rule's provision that allows investors to bring class-action lawsuits against investment providers will have to stand up to new scrutiny. Obama administration regulators openly touted that provision as the rule's primary enforcement mechanism. For the time being, the plaintiffs' bar should be kept at bay, as written warranties of fiduciary status, and the rule's Best Interest Contact Exemption, which includes the class-action provision, are not required until the first of next year. Moreover, Labor signaled it would not be enforcing even the impartial conduct standards until January 2018, so long as firms are working "diligently and in good faith" to give fiduciary advice. That "essentially ensures that neither the DOL nor private litigants will be able to bring a lawsuit to enforce the rule until after January 1, 2018," said Erin Sweeney, an attorney with Miller & Chevalier, in a statement. After that date, all bets are off, assuming the January 1, 2018 deadline holds up. In the most recent Labor FAQ, regulators raised the prospect that a delay of the full rule would allow for "more affective retirement investor assistance" as industry completes the rollout of new investment products, like so-called clean shares of mutual funds designed to mitigate advisor conflicts. Article 7 Update on Labor Department Fiduciary Rule National Law Review David B. Hamilton 5/24 We first began writing about the DOL Fiduciary Rule two years ago. Since then, the status of adoption of the Rule has been uncertain, even could be characterized as a roller coaster ride. The push from the Obama administration was slowed down by the 2016 Presidential election. Certainly, if Hillary Clinton had been elected, the regulatory path would have been smoother for adoption, even in the face of lawsuit challenges. President Trump's election has resulted in DOL-17-0281-K-000389 AO 836892 OSEC 000389 some more uncertainty; the delay in the appointment of Sec. Acosta may have contributed to the uncertainty. So, now where do we stand? Strictly from the regulatory standpoint, the path seems clear: on June 9, the DOL's regulatory change takes effect, expanding the definition of fiduciary investment advice, holding service providers and plan sponsors accountable to the regulations included in ERISA. Simply put, that fiduciary obligation means that service providers subject to the rule must act in the best interests of their clients. In the event of a conflict of interest, the service provide must meet certain exemptions or avoid offering fiduciary advice. We are on the cusp of a fundamental change. Though some providers have already begun the internal changes in order to meet the Rule, some have resisted; some seek the safe harbor of temporary exemptions; some have joined the legislative and litigation challenges to the Rule. What can stop the implementation? Here are some possibilities: Sec. Acosta takes an action through DOL to freeze the June 9 implementation. As of this writing, there are growing concerns in Congress that Sec. Acosta will take last minute actions. On May 19, Sen. Patty Murray, joined by Sens. Warren and Booker, wrote to Sec. Acosta seeking assurance that he would take no action. On May 22, however, Sec. Acosta announced that he no reason to delay the "soft open" while the DOL seeks public input. Notwithstanding, will President Trump "overrule" Sec. Acosta through a new Executive Order? The Financial Choice Act, approved by the House Financial Services Committee, on May 4 both overhauls the Dodd-Frank Act and repeals the DOL Fiduciary Rule. Passage of the bill before or after June 9 would present obstacles or more to the implementation of the Rule. To date, legal challenges to the Rule have not been successful. It is reasonable to predict that the existing legal challenges will continue at district court and appellate levels. Conversely, it is reasonable to predict that further delay of implementation of the Rule could result in lawsuits seeking to enforce the Rule, likely through a lawsuit brought pursuant to the Administrative Procedures Act. In the face of this uncertainty, some providers have acted as though the Rule will be implemented. "Limited purpose IRAs" is a term that has been coined to provide options to investors to comply with the Rule. Other providers have crossed fingers and are hoping for further delay or repeal of the Rule. Regardless, the costs to providers have been enormous. Predictions here are dangerous. And, there are so many possibilities that the predictions may not be valuable. Perhaps by our next newsletter there will be more clarity. Perhaps not. Not Responsive DOL-17-0281-K-000390 AO 836892 OSEC 000390 Not Responsive DOL-17-0281-K-000391 AO 836892 OSEC 000391 Not Responsive DOL-17-0281-K-000392 AO 836892 OSEC 000392 Not Responsive DOL-17-0281-K-000393 AO 836892 OSEC 000393 Not Responsive DOL-17-0281-K-000394 AO 836892 OSEC 000394 Not Responsive DOL-17-0281-K-000395 AO 836892 OSEC 000395 Not Responsive DOL-17-0281-K-000396 AO 836892 OSEC 000396 Message From: l-·----~-i-~=-~-~~~~~~-~~;~~~t~--~-~~~-~~--! ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· (_b_) (6)·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· i 5/25/2017 5:29:15 PM Sent: [~~~(~!;i;,~,-M:"QSEcr _________________ (!?~i:,-,li\ ___________ Li To: CC: i! Hazelton, Jennifer !i !i !i {b){6) :Smith, Gavin J - OSEC ; ; ; ~ogers, Jillian B - OSEC ~--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·.·-·J ' I Subject: ( b)(6) ' ,1:';ec, Wayoe D - OSEC :._·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· i (b )(6)i Evening Clips 5/25 l________ J Evening News Clips: 5/25/17 ----------- ------------------------------------ ----------------------------------------------------------- ] _________________ Not Responsive 5/25 BLR New DOL Fiduciary Rule Takes Effect June 9; Acosta Says SECShould Be Involved Click Here Not Responsive 5/25 Intelligence Post Trump's DOL Pick Allows Obama-era Rule to Move Forward Click Here Not Responsive DOL-17-0281-K-000397 AO 836892 OSEC 000397 Not Responsive DOL-17-0281-K-000398 AO 836892 OSEC 000398 Not Responsive DOL-17-0281-K-000399 AO 836892 OSEC 000399 Not Responsive DOL-17-0281-K-000400 AO 836892 OSEC 000400 Not Responsive Article 4 New DOL Fiduciary Rule Takes Effect June 9; Acosta Says SECShould Be Involved BLR Jane Meacham 5/25 The fiduciary duty rule crafted by the Obama administration's Department of Labor (DOL) will become applicable June 9, as the regulatory agency continues to review it for possible changes or reversal. Newly installed U.S. Labor Secretary Alexander Acosta on May 22 announced the decision not to further delay the rule's applicability date for phased implementation in an op-ed piece in The Wall Street Journal. He wrote in the op-ed that additional delay of the regulation would not be consistent with the law, and said the DOL had "found no principled legal basis to change the June 9 date while we seek public input." The rule had been set to take effect April 10, but was halted for 2 months for a public comment period to address some of the issues raised by a February memorandum seeking review of the regulation from President Trump shortly after he took office. Many in the Trump administration publicly oppose increased regulation of retirement investment advisers and the financial services industry in general, although few have provided specific plans for dismantling the DOL fiduciary rule that will go into effect in June. "The Labor Department will roll back regulations that harm American workers and families. We do so while respecting the principles and institutions that make America strong," Acosta wrote in the op-ed. Seeks Role for SEC In the same op-ed, Acosta said the U.S. Securities and Exchange Commission (SEC)should be "a full participant" in the review of the DOL fiduciary rule now underway because of its "critical" financial markets regulatory expertise. In past years, the DOL and SEChave been seen as being at odds on developing such regulation, with the DOL taking the lead under the Obama administration. The announcement raised some questions among practitioners about eventual compliance with the rule's Best Interest Contract Exemption (BICE) and its several prohibited transaction exemptions (PTEs)as of January 1, 2018. The DOL in response published "Conflict of Interest FAQs" for the 2017 transition period until the rule is modified or fully implemented. It also published Field Assistance Bulletin (FAB) 2017-02, which outlines the DOL's temporary enforcement policy on the fiduciary rule. Although the provisions of the rule have been public for a more than a year, employer plan sponsors and their DOL-17-0281-K-000401 AO 836892 OSEC 000401 retirement plan advisers still may be uncertain about how to properly carry out the new regulation's changes. The rule alters the definition of who is a fiduciary when advising plan sponsors or participants on 401(k) and defined benefit pension plans, and also may affect the way sponsors oversee their retirement plans. Employers that sponsor retirement plans are already fiduciaries, so their job continues to be ensuring their plan service providers are working in the best int erest of their employee plan participants. The DOL's interim enforcement of the final rule eliminates the need for transition agreements, disclosures, and some changes that were formally required to be in place by the fiduciary rule's original applicability date of April 10. It was seen as providing short -term relief to plan sponsors and other retirement plan administrators while the fiduciary rule is being reviewed by the DOL. Required representations of fiduciary compliance and related written disclosures also are now delayed until the start of 2018, a move that limits plan and adviser liability for the time being. Covered transactions will be regulated by the less rigorous Impartial Conduct Standards as of June 9. Compliance with Impartial Conduct Standards is also sufficient between June 9 to January 1, 2018, for the Class Exemption for Principal Transactions or Prohibited Transaction Exemption 84-24. These standards require that advice given must be in retirement investors' best interest, compensation must be reasonable, and prohibit institutions and advisers from giving misleading statements to investors . The agency has said the standards would protect plans and retirement investors effectively during the transition period. RFI for Ideas on Regulatory Changes In FAB 2017-02, the agency acknowledges that "after the fiduciary duty rule and PTEswere issued firms have begun to develop new business models and innovative market products to mitigate conflicts of interest." In recognition of this, the DOL issued a Request for Information (RFI) seeking additional public input on ideas for possible new exemptions or regulatory changes. The RFIwill ask whether an additional delay beyond January 1, 2018, is required to reduce the burden on financial services providers and retirement plan investors. The decision not to further delay the regulation aimed at protecting consumers' retirement savings ran counter to comments from some in the Trump administration and Republi can Party who have favored rolling back the rule. In response, Acosta, in his Wall Street Journal op-ed, wrote: "Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of publi c notice and comment. But this process is not red tape . It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans ." Not Responsive DOL-17-0281-K-000402 AO 836892 OSEC 000402 Not Responsive DOL-17-0281-K-000403 AO 836892 OSEC 000403 Not Responsive DOL-17-0281-K-000404 AO 836892 OSEC 000404 Not Responsive DOL-17-0281-K-000405 AO 836892 OSEC 000405 ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 Not Responsive ; ; ; ; ; ; ; ; ; ; ; ; ! Article 8 Trump's DOL Pick Allows Obama-era Rule to Move Forward Intelligence Post Author Date President Trump's pick for labor secretary chooses to allow Obama item to take effect Financial industry advisors, such as life insurers, must act as fiduciaries and recommend investment strategies that are in the best interests of their clients Retirees were paying exobriant fees, commissions for advice on saving for their Golden Years. In the U.S., politicking over the budget and the repeal of Obamacare are dominating the news cycle, nearly drowning out some very important news that directly affects financial advisors and the clients they serve. Alexander Acosta, the newly appointed Secretary of the Department of Labor, announced this week that he would allow a controversial rule drafted during Barack Obama's administration to move forward. Referred to as the DOL fiduciary rule, it was one of the regulations that President Trump had in his sights to water down or do away with altogether. The rule became a hotbed issue for the financial industry when it was released. Industry players charged that it, like many of Oba ma's regulations, was overly burdensome. Supporters of the rule, however, championed it as being needed to protect investors, especially retirees, from being led to buy investment products they did not need. The thought was that too many in the financial industry were peddling financial products their clients didn't need. We last told you about the rule before it was set to go into effect in April. That effective date had been delayed when President Trump took office in January. In February, he issued a memorandum to the DOL for it to further review the rule's pros and cons. Acosta was later appointed as the secretary of the labor department. The delay pushed the applicability date back to June 9 to give the DOL more time to review it, especially regarding its effects. The rule's full implementation is slated for Jan. 1, 2018. In the meantime, the DOL is reviewing public comments on the rule. New kind of fiduciary The rule specifically applies to financial advisors and retirement plan sponsors. Surprisingly, neither of which had previously had to make suggestions to their clients that were solely in their clients' best interests. The rule provides that anyone who provides investment advice will become fiduciaries, as defined by the Employee Retirement Income Security Act. The rule's provisions may seem like no brainers, however, it seems they were needed. That's because many financial advisors habitually suggested products to their clients that came with hefty fees and commissions, just so they could line their own financial coffers. Their objective was to line their own pockets with higher fees and commissions at the expense of their clients. However, those in the financial services industry begged to differ. They charged that the rule is another burdensome regulation that limits the availability of their services for the very people who need advice the most. They also have lamented concerns that implementing the rule would be too costly, and that the rule doesn't address the issue of higher DOL-17-0281-K-000406 AO 836892 OSEC 000406 costs to savers. The rule limits choice of investment advice, freedom of contract and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors, critics say. Acosta responded to criticism of the new rule in an opinion piece he penned for The Wall Street Journal this week: "The rule's critics say it would limit choice of investment advice, limit freedom of contract and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors." The DOL left the door open for additional changes to be made, but did not specify whether those changes would be to the delight or dislike of advisors. "[It] is possible, based on the results of the examination, that additional changes will be proposed. Many of the most promising responses to the fiduciary rule are likely to take significantly more time to implement than what the department envisioned when it set Jan. 1, 2018." Before the rule is fully implemented in January, financial advisory firms should review ways to comply that are cost effective. Costs were one of the issues financial firms raised as key concerns. In the best interest of clients The standards specifically require advisers and financial institutions to: • • • Give advice that is in the "best interest" of the retirement investor. This best interest standard has two chief components: prudence and loyalty: o Under the prudence standard, the advice must meet a professional standard of care as specified in the text of the exemption; o Under the loyalty standard, the advice must be based on the interests of the customer, rather than the competing financial interest of the adviser or firm; Charge no more than reasonable compensation; Make no misleading statements about investment transactions, compensation, and conflicts of interest. Not Responsive DOL-17-0281-K-000407 AO 836892 OSEC 000407 Not Responsive DOL-17-0281-K-000408 AO 836892 OSEC 000408 Not Responsive DOL-17-0281-K-000409 AO 836892 OSEC 000409 Not Responsive DOL-17-0281-K-000410 AO 836892 OSEC 000410 Not Responsive DOL-17-0281-K-000411 AO 836892 OSEC 000411 Not Responsive DOL-17-0281-K-000412 AO 836892 OSEC 000412 Message From: Sent: To: CC: L.~~~-~~~:.~_e:.~-~~~fs\~-~-~-~--~-~~~-: ____ i ( b) (6) i 5/26/2017 7 :3 2 :45 AM L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i cBA.1~r(~f--·-·1___ _________________________________________________ <_b) J1~)_ _____________ .1bH_6L ____________ , iFoll ow us on ( b)(6)-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-r Twitter at i·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- DOL-17-0281-K-000441 AO 836892 OSEC 000441 Not Responsive Seething over 'fiduciary' rule, lobbyists to meet with DOL's Acosta today By Patrick Temple-West and Marianne LeVine 05/30/2017 05:01 AM EDT Labor Secretary Alexander Acosta is scheduled to have a May 30, closed-door meeting with disgruntled financial-industry lobbyists upset that he is allowing the agency's "fiduciary" rule to begin on June 9. Lobbyists representing the Financial Services Roundtable, the Investment Company Institute, the Securities Industry and Financial Markets Association and the American Bankers Association were invited to today's meeting, among others, one source familiar with the matter said. A Labor Department spokesman said a broad range of stakeholders involved with the rule were invited. A second session will include the fiduciary rule's supporters, but details about who will participate could not be learned, a source said. Officials at the groups for and against the fiduciary rule did not immediately respond to requests for comment. In his first major action as Labor Department chief, Acosta said there is no legal way to change the June 9 start date for the rule, which requires financial advisers to put the interests of their clients first when giving retirement advice. DOL-17-0281-K-000442 AO 836892 OSEC 000442 "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta said, in handing a temporary win to the Obama administration, which had been working on the rule for years. WHAT'S NEXT: Acosta said the Labor Department will engage in a new rule-making process, proposing to rescind the rule. To view online: https://www.politicopro .com/emplovment-immigration/whiteboard/2017/05/seething-over-fiduciarv-rulelobbvists-to-meet-with-dols-acosta-today-088369 DOL-17-0281-K-000443 AO 836892 OSEC 000443 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 5/30/2017 4:59:52 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en =15dc286768d945dc9fcda83 7095195fd-RA Acosta] Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=525c2057d4a 14206a99bf3aa8a80e004-Pal mer, Way]; Hazelton, Jennifer OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Gamble, Bennett B - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en =97bd764566694 7ffa4fdf78ffe 13b871-Ga m bl e, Ben] Evening Clips 5/30 Evening News Clips: 5/30/17 5/30 NAPA Net Acosta Lining Up Meetings on Fiduciary Rule Click Here Not Responsive -·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. 5/30 The Hill Chamber of Commerce rips 'flawed' financial adviser rule Click Here 5/30 Politico Pro Acosta won't attend fiduciary rule meeting Click Here 5/30 Washington Free Beacon Obama Regulation Could Leave Millions of Retirees Without Investment Guidance Click Here 5/30 401K Specialist Cost Of 'Conflicted' Retirement Advice In Every State Click Here 5/30 Value Walk Fiduciary Rule On Pace For June, But Changes May Be Close Click Here ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-. Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ; ; ; ; ; ; ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-j Article 1 Acosta Lining U~ Meetings on Fiduciary Rule NAPA Net DOL-17-0281-K-000444 AO 836892 OSEC 000444 Staff report 5/30 Having weathered some controversy over his stance on the fiduciary regulation, Labor Secretary Alexander Acosta is reportedly scheduling meetings with both advocates and critics of the rule, beginning today. Politico Pro reports that Acosta is scheduled to have a closed-door meeting today with a group of organizations opposed to the fiduciary regulation, including the Financial Services Roundtable, the Investment Company Institute, the Securities Industry and Financial Markets Association and the American Bankers Association. The report cited a source "familiar with the matter," but also that a Labor Department spokesman said a broad range of stakeholders involved with the rule were invited. A second session will include the fiduciary rule's supporters, but details about who will participate could not be learned, Politico Pro reported, citing "a source." It was only a week ago that Acosta went on record in an op-ed in The Wall Street Journal stating that having "found no principled legal basis to change the June 9 date while we seek public input," the fiduciary regulation would take effect on June 9. However, he also noted that "trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." Earlier in May NAPA Net reported that Acosta recently expressed his intention to freeze the rule in a way that would "stick" in a conversation with Sen. Tim Scott (R-SC).That report triggered a written response to Acosta from Sens. Patty Murray (D-WA), Elizabeth Warren (D-MA) and Corey Booker (D-NJ) encouraging him to wait for the outcome of the Labor Department's analysis of the rule. Not Responsive DOL-17-0281-K-000445 AO 836892 OSEC 000445 Not Responsive DOL-17-0281-K-000446 AO 836892 OSEC 000446 Not Responsive DOL-17-0281-K-000447 AO 836892 OSEC 00044 7 Not Responsive DOL-17-0281-K-000448 AO 836892 OSEC 000448 Not Responsive DOL-17-0281-K-000449 AO 836892 OSEC 000449 Not Responsive Article 6 Chamber of Commerce rips 'flawed' financial adviser rule The Hill Niv Elis 5/30 DOL-17-0281-K-000450 AO 836892 OSEC 000450 The U.S. Chamber of Commerce on Tuesday slammed a new federal rule for investment advisers set to take effect in two weeks, saying it will harm savers instead of protecting them. The business group said the Department of Labor regulation, known as the fiduciary rule, "was built upon a mountain of flawed analysis and would harm the very people it was purported to protect by raising costs and limiting investment options." A study from the Chamber says the regulation would result in up to 7 million people losing access to investment advice, with some 92 percent of firms saying the rule could limit the products they offer to customers. The Chamber has been an outspoken critic of the rule since it was first proposed under President Obama. While the Trump administration was able to postpone its implementation date of the rule from April 10, last week Labor Secretary Alexander Acosta said that by law, the rule would have to take effect by June 9. Firms will have until 2018 to fully comply. The rule tightens standards on investment advisers for retirement plans, adding a legal requirement that the advice be in the best interest of the client. The regulation is intended to fix warped incentives by which an adviser might benefit by giving savers advice that would hurt the saver's bottom line. An early study on the rule from the Brookings Institution, a left-leaning think tank, came to a different conclusion than the Chamber's. "To no surprise, those benefiting from current practices have paid for research to try to discredit the proposed rule. Such research claims that people don't lose as much money from biased advice as careful, independent research has shown," Brookings Economic Studies Fellow Jane Dokka wrote when the rule was proposed. "Research not funded by special interest groups concludes that when they are paid to recommend certain financial products over others, advisors tilt their recommendations so that they receive higher pay," Dokka wrote. Article 7 Acosta won't attend fiduciary rule meeting Politico Pro Marianne LeVine and Patrick Temple-West 5/30 Labor Secretary Alexander Acosta is not scheduled to attend today's closed-door meeting with disgruntled financialindustry lobbyists who are upset that the agency is allowing the agency's "fiduciary" rule to begin on June 9. Representatives from the Financial Services Roundtable, the Investment Company Institute, the Securities Industry and Financial Markets Association, and the American Bankers Association, among others, were invited to today's meeting, one source familiar with the matter said. Labor Department representatives said a broad range of stakeholders involved with the rule were invited, but that Acosta was not expected to be present. A second session will include the fiduciary rule's supporters, but details about who will participate could not be learned, a source said. Officials at the groups for and against the fiduciary rule did not immediately respond to requests for comment. In his first major action as Labor Department chief, Acosta said there was no legal way to change the June 9 start date for the rule, which requires financial advisers to put the interests of their clients first when giving retirement advice. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," Acosta said. Acosta said the Labor Department will engage in a new rule-making process, proposing to rescind the rule. DOL-17-0281-K-000451 AO 836892 OSEC 000451 Article 8 Obama Regulation Could Leave Millions of Retirees Without Investment Guidance Washington Free Beacon Bill McMorris 5/30 One of the Obama administration's final major labor regulations could deprive millions of retirement savers investment advice from financial professionals, according to a new report. The Department of Labor proposed the Fiduciary Rule in April 2015, which would allow regulators to oversee the relationship between retirement account advisors and their clients to ensure that the former were completing trades for the sole interest of their clients. The rule was approved in 2016 under the leadership of Labor Secretary Tom Perez, now the head of the Democratic Party. "In 2016, the Department took a historic step to protect the savings of America's workers-the conflict of interest rule makes sure that professionals providing retirement investment advice have to give advice that's in the best interest of their clients and not divert their clients' hard-earned income into their own pockets through hidden fees and conflicted advice," Perez said in an exit memo published on the White House website. The Chamber of Commerce's Center for Capital Markets Competitiveness said in a new report that the regulation will have unintended consequences that could drive up costs for workers saving for retirement and prevent small investors from receiving financial advice from professionals. The regulation would give financial firms incentives to move away from commission-based management to fee-based management, which could hinder those with smaller accounts from gaining access to retirement advice because of the "substantial threat of unwarranted litigation." The report found that "up to 7 million individual retirement account (IRA) owners could lose access to investment advice altogether" and that 92 percent of investment firms "could limit or restrict investment products for their customers, which could ultimately effect some 11 million households." The report is based off of a comprehensive collection of surveys and data gathered by independent and industry groups, as well as public comments submitted to the Labor Department after it introduced the rule. It concludes that the department "underestimated the negative effects of the rule, particularly in reducing access to advice for small retirement savers and small businesses." "The theoretical academic exercises underlying the Rule are giving way to hard evidence, and the evidence is coming in showing that the rule is harming American investors. This new data, based on actual experience, demonstrates that the DOL's original predictions were wrong," the report says. "The DOL has overstepped both its jurisdiction and its expertise." President Trump ordered the department to review the rule in February as part of his deregulation agenda. Opponents of the rule hoped that Labor Secretary Alexander Acosta would delay its implementation. Rep. Phil Roe, a member of the House Committee on Education and the Workforce, and 123 other congressmen sent a letter to Labor Secretary Alexander Acosta on May 2 urging him to "delay this rule in its entirety." Acosta indicated in a Wall Street Journal op-ed that the department would move forward with the rule, while leaving open the possibility of amending it. He said that he would follow through on Trump's call for a review of the regulation and seek additional public comment and input from the industry, as well as financial watchdogs. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed," he wrote. "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." Congressional Republicans have been critical of Acosta's decision to move forward with the rule. Rep. Virginia Foxx (R., NC), chairwoman of the House Committee on Education and the Workforce, said that delaying implementation "does not provide the relief workers and families urgently need from a deeply flawed rule." DOL-17-0281-K-000452 AO 836892 OSEC 000452 "If this is the path the department is determined to take, then it must quickly develop a responsible solution for dealing with a regulatory scheme that will make it harder and more costly for low- and middle-income families to save for retirement," Foxx said in a statement. "The last administration inflicted a lot of pain on workers, families, and small businesses, and it is going to take bold leadership to undo the damage that's been done and pursue a better course." The department will begin implementing the rule on June 9. Article 9 Cost Of 'Conflicted' Retirement Advice In Every State 401K Specialist John Sullivan 5/30 The left-leaning Econom ic Policy Institute is throwing around big numbers in its analysis of the cost of conflicted retirement advice. It goes even further and calculates the cost of the fiduciary rule's 60-day delay, now slated for imp lementat ion on June 9. "The fiduciary ru le will require financial advisers to act in t he best interests of clients saving for retirement," Heidi Shierholz, EPl's Director of Policy, said in a statement. "The Department of Labor should fully implement and enforce the fiduciary rule to protect the savings of working people ." The rule, which was supposed to go into effect on April 10, was delayed until June 9th. The Trump administration is reviewing the rule, despite what EPI notes is a "six-year, exhaustive vetting process which found that these conflicts are 'inflicting large, avoidable losses on retirement investors.' This delay will cost retirement savers $3. 7 billion over the next 30 years." Annual losses overall due to a lack of a fiduciary standard cost Texans $1 billion, New Yorkers $945 million and retirement savers from midwestern states like Ohio over $700 million. "EPI Policy Center app lauds Secretary of Labor Alexander Acosta for not further delaying the rule past June 9th, however, key compliance provisions built into the rule's exceptions have been further delayed to January 1, 2018," the institute adds. "Moreover, the department announced that it will not enforce the rule between June 9 and January 1st. This means loopholes that allow financial advisers to take advantage of savers are not fully closed and retirement savers will continue to be harmed." Further, EPI said it expects new attempts to weaken and delay the rule in coming months, since the department has made it clear that it is considering proposing additional changes to the rule and delaying it beyond January 1. EPI economist Ben Zipperer notes that the financial services industry is a sector of the economy with high wages and income while most workers' wages have been largely stagnant for 35 years . "It's long past the time for a common-sense rule that requires the financial services industry not to rip off America's working people who are saving for retirement ." The full list and associated costs can be found here. Article 10 Fiduciary Rule On Pace For June, But Changes May Be Close Value Walk Staff report 5/30 The Departmeny of Labor's (DOL) Fiduciary Rule is set for part ial implementat ion on June 9. DOL-17-0281-K-000453 AO 836892 OSEC 000453 On March 1, the DOL proposed a 60-day delay to the Fiduciary Rule, seemingly setting the stage for its repeal or revision. The rule, which requires financial advisors and brokers to put their clients' investment interests before their financial incentives, was set to start taking effect April 9. The Labor Department's proposal to push that effective date back 60 days came after President Donald Trump signed an executive action on February 3 asking the acting Secretary of the Labor Department to revise or rescind the rule . The DOL 60-day delay request, in response to Trump's executive action, came in an official statement, which stated, "The proposed extension is intended to give the department time to collect and consider information related to the issues raised in the memorandum before the rule and exemptions become applicable." However, rather than delay the Fiduciary Rule's implementation potential for repeal and replacement further down the road. again, it now appears will forge ahead, with the On May 23, Alexander Acosta, Trump's new DOL Secretary, wrote an opinion piece for The Wall Street Journal called Deregulators Must Follow the Law, So Regulators Will Too, where he stated: ''The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for a complete delay of the rule. We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans ' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making . Yet the SEChas critical expertise in this area. I hope in this administration the SEC will be a full participant." The Securities Industry and Financial Markets Association (SIFMA), is the main lobbying group of the U.S. securities industry. It represents the broker-dealers, banks, and asset managers whose nearly 1 million employees provide access to the capital ma rkets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $18.5 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans. SIFMA is the U.S. regional member of the Global Financial Markets Association. Kenneth E. Bentsen, Jr, SIFMA president and CEO, agreed with Department of Labor Secretary Acosta's decision not to further delay the fiduciary rule beyond June 9: "SIFMAhas long-supported the creation of a best interest standard for brokers who provide personalized investment advice, and we continue to believe that the SECis the appropriate regulator to do so. We look forward to working with the Administration and Congress on the creation of a best interest standard that protects all retail investors, while preserving choice and investment services without raising costs. While we are disappointed that the Department of Labor has chosen not to further delay the rule until the Department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta 's recognition of the rule's negative impact and his desire to seek public input." What Do These Comments Mean? Critics say the fiduciary rule is overly burdensome for the financial services industry and would cut small retirement savers off from advice. Proponents say the rule would raise the standard of care on nearly $7 trillion of IRA and other retirement assets (similar to 401-k savers under ERISA)from the previous "suitability standard" applicable unde r the SEC. Like the Affordable Care Act (aka Obamacare), the DOL Fiduciary Rule has become a symbol of the Obama Whiteh ouse, DOL-17-0281-K-000454 AO 836892 OSEC 000454 which the Congressional Republican majority has long sought to block and overturn. In November, we predicted that the DOL Rule would be delayed, defunded, or overturned specifically because of the BICE(best interest contract exemption) clause, which would provide the legal contract for investors to potentially sue financial firms in a court of law for "breach of contract." In January, I wrote, "We expect the Fiduciary rule in its present form will be delayed and ultimately redirected from the DOL to the SEC;a final version will not include the litigious elements of the BICE." Many industry participants do not want BICE,but do in fact want the other elements of the Fiduciary Rule to stand, for several reasons: ■ They've already made huge compliance investments across documentation, product development, training, systems, disclosures, and reporting. ■ Clients want a fiduciary financial advisor, and controversy has driven the vernacular of the public discussion. ■ Those affected expect increased profitability with a fee-based AUM revenue model vs. commission-based revenue model (Morningstar estimates up to 60% more). ■ A fee-based revenue model is preferable by both regulators and shareholders (predictability). While the decision not to delay the Fiduciary Rule further may save it for the time being, given the comments from SIFMA officials and Secretary Acosta, the rules replacement still seems inevitable. It's likely we'll hear more about this in the very near future. Not Responsive DOL-17-0281-K-000455 AO 836892 OSEC 000455 Not Responsive DOL-17-0281-K-000456 AO 836892 OSEC 000456 Message Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 5/31/2017 7:13:58 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Smith, Gavin J - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Hazelton, Jennifer - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Palmer, Wayne D OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Reci pi ents/ cn=97bd764566694 7ffa4fdf78ffe 13b871-Ga m bl e, Ben] Morning Clips 5/31 From: Sent: To: CC: Subject: Morning News Clips: 5/31/17 Investment News 5/30 Retirement fees could rise 200% post-DOL, Chamber of Commerce warns Click Here Not Responsive '·-·-··-Arti Cf e. r-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Retirement fees could rise 200% post-DOL, Chamber of Commerce warns Investment News Staff report 5/30 The U.S. Chamber of Commerce, which lobbied against adoption of the Department of Labor's fiduciary rule for retirement accounts, has published a report highlighting the negative effects the new rule will have on retirement savers. The report is a collection of survey statistics and other data submitted by various organizations during the recent DOL comment period. Among its highlights are that service fees on retirement accounts could rise by as much as 200%, that up to 7 million individual retirement account owners could lose access to investment advice altogether, and that 70% of insurance service providers already have or are considering exiting the market for small-balance IRAs and small plans. "Throughout the rule-making process, the U.S. Chamber warned that the fiduciary rule was built upon a mountain of flawed analysis and would harm the very people it was purported to protect by raising costs and limiting investment options," the chamber said in a letter promoting the report. Not Responsive DOL-17-0281-K-000457 AO 836892 OSEC 000457 Not Responsive DOL-17-0281-K-000458 AO 836892 OSEC 000458 Not Responsive DOL-17-0281-K-000459 AO 836892 OSEC 000459 DOL-17-0281-K-000460 AO 836892 OSEC 000460 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 5/31/2017 9:11:49 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Smith, Gavin J - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Hazelton, Jennifer - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Palmer, Wayne D OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=2fla4b386flb458892d4a3048ded008e -Mannix, Pat]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=da824a 1fa6d64a lda3 73f567 ae34ed06 -GeaIe, Ni ch] RE: Evening Clips 5/31 Godzilla (the Fiduciary Rule) Ate the Rule of Law Wall Street Journal, Eugene Scalia, 5/31 Labor Secretary Alexander Acosta announced last week that he would let the controversial "fiduciary" rule take effect June 9. Respect for the rule of law, he explained, made further delay impossible without a new round of rule-making. Although I disagree with Mr. Acosta's legal analysis, he is a serious lawyer whose commitment to the rule of law is to be admired. That commitment will face an even greater test in July, when Mr. Acosta and the Justice Department, under Attorney General Jeff Sessions, are due to make their first significant court filing defending the fiduciary rule. Adopted by the Obama administration last year, the rule radically alters the responsibilities of brokers and insurance agents who service individual retirement accounts. Critics of the rule focus on how it will disrupt the financial-services and insurance industries, raising costs and reducing investors' options. To a lawyer, though, what's most striking about the rule is that it's a regulatory Godzilla-an disregard for limitations imposed by Congress and the Constitution. extraordinary example of To start, although the rule will transform the market for IRAs, the Labor Department has no authority to regulate IRAs. How, you might ask, is it regulating something that by law it may not? Well, Labor has deregulatory authority with respect to IRAs-it can lift restrictions that otherwise apply. So the Labor Department first adopted an overbroad definition of who is a fiduciary, essentially capturing all insurance agents and brokers who deal with IRAs.They automatically became subject to the restrictions Congress places on fiduciaries, effectively barring the receipt of commissions. Then the department used its deregulatory authority to make insurance agents and brokers an offer they couldn't refuse: They could get commissions after all, if they complied with a raft of new requirements designed for IRAs. In this way the Labor Department made itself-not the Securities and Exchange Commission and not state insurance agencies-the principal regulator of financial professionals who service IRAs. DOL-17-0281-K-000461 AO 836892 OSEC 000461 This is similar to a ploy the Environmental Protection Agency recently tried with greenhouse -gas emissions. The Supreme Court threw out the EPA's rule, remarking that an agency may not regulate based on "its own sense of how the statute should operate" -an apt description of what Labor did here. For those committed to the rule of law, defending this sort of regulatory self-aggrandizement should be a very bitter pill. As should this: A key issue in the fiduciary litigation is the Constitution's restriction on federal agencies' ability to create new grounds for people to sue. The Supreme Court held in 2001 that only Congress may create these private rights of action. "Agencies may play the sorcerer's apprentice," Justice Antonin Scalia wrote, "but not the sorcerer himself." Congress created no private right of action in the statute governing IRAs. But the Labor Department devised a workaround: As a condition for the "deregulatory" relief that allows the receipt of commissions, firms must enter into contracts with customers in which they agree to be subject to class-action lawsuits. Presto-now, there's a private right of action. In adopting the rule, the Labor Department justified this provision on the ground that the contract, not the regulation, contains the right to sue. But if that sleight of hand is allowed, federal agencies can create private rights of action at will simply by forcing businesses to sign customer contracts opening themselves to class-action liability and even punitive damages. The fiduciary rule also attacks arbitration. The Federal Arbitration Act generally prohibits federal agencies and states from restricting the use of arbitration. But again the Labor Department used its contract requirement to flout Supreme Court precedent: Under the new rule, the contracts financial firms must enter with customers can't allow arbitration of claims that could be brought as class-action lawsuits. Arbitration restrictions like this ordinarily are anathema to Republicans-and to Mr. Sessions. In 2008 he joined a Senate report that said one antiarbitration bill would expose American businesses to "a rapacious trial bar." But now, in defending the fiduciary rule, the Labor and Justice departments may be paving the way for agencies to outlaw arbitration. A government agency that wants to ban arbitration could simply condition a license, or participation in a government program, on businesses' signing contracts with customers that invite class-action lawsuits that cannot be arbitrated. This ploy wouldn't be limited to federal agencies. Under the Labor Department's theory, a state or local government could do away with arbitration tomorrow by making government permits or benefits contingent on forswearing arbitration with customers. One of the biggest challenges for any new administration is contending with its predecessor's priorities and beginning to advance its own. This requires resolve and the dedication to principle that Mr. Acosta rightly extolled. In the weeks ahead, the Labor and Justice departments must give careful thought to how, in defending the fiduciary rule, they could inadvertently be advancing a sweeping assault on the rule of law. Mr. Scalia, a former solicitor of the Labor Department, is a lawyer representing clients in a legal challenge to the fiduciary rule. From: Lineberger, Timothy L - OSEC Sent: Wednesday, May 31, 2017 5:27 PM To: RA Acosta Cc: Smith, Gavin J - OSEC; Rogers, Jillian B - OSEC; Hazelton, Jennifer - OSEC; Palmer, Wayne D - OSEC; Gamble, Bennett B - OPA; Mannix, Patrick M - OSEC; Conway, Molly E - OSEC; Geale, Nicholas C. - SOL Subject: RE: Evening Clips 5/31 One more ... DOL-17-0281-K-000462 AO 836892 OSEC 000462 Not Responsive L--·-· ....................................................................................................................................................................................................................................................................................................................................................................................... ·-·-·-·- From: Lineberger, Timothy L - OSEC Sent: Wednesday, May 31, 2017 5:08 PM To: RA Acosta Cc: Smith, Gavin J - OSEC;Rogers, Jillian B - OSEC;Hazelton, Jennifer - OSEC;Palmer, Wayne D - OSEC;Gamble, Bennett B - OPA; Mannix, Patrick M - OSEC;Conway, Molly E - OSEC;Geale, Nicholas C. - SOL Subject: Evening Clips 5/31 Not Responsive 5/31 Investment News Advisers question Chamber report about harm from DOL rule Click Here DOL-17-0281-K-000463 AO 836892 OSEC 000463 5/31 Compliance Week Fiduciary rule not dead yet, compliance begins June 9 Click Here 5/31 St. Louis Post-Dispatch Study says investors could lose big if Trump administration deep-sixes 'fiduciary rule' Click Here Not Responsive ··-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·,.. DOL-17-0281-K-000464 AO 836892 OSEC 000464 Not Responsive DOL-17-0281-K-000465 AO 836892 OSEC 000465 Not Responsive DOL-17-0281-K-000466 AO 836892 OSEC 000466 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Not Responsive --·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. Article 5 Adv isers guestion Chamber reQort about harm from DOL rule Investment News Mark Schoeff Jr. 5/31 Some financial advisers are questioning the accuracy of a U.S. Chamber of Commerce report that asserts that the Labor Department fiduciary rule will harm small investors and businesses. On Tuesday, the Chamber released a report that compiles statistics from surveys and other data submitted during a recent comment period on the rule. The Chamber highlighted findings that show that 7 million individual retirement account holders could be jettisoned by their advisers because their accounts are too small and that service fees could rise by 200%. Those outcomes don't ring true to Aaron Pottichen, president of CLSPartners Retirement Services. "I don't think it's rooted in reality," Mr . Potti chen said. "It runs counter to every other trend we see in the indust ry. Fees are coming down in 401(k) plans. Fees for individual investors are coming down. This report is more about businesses protecting their bottom lines than making sure people have access to the right advice." The Chamber put out the report a week after Labor Secretary Alexander Acosta said that the agency would continue to take public comment for its reassessment of the regulation, which requires financial advisers to act in the best interests of their clients in retirement accounts. The review, mandated by President Donald J. Trump, could result in the modification or repeal of the measure. DOL-17-0281-K-000467 AO 836892 OSEC 000467 The Chamber has been one of the most vocal opponents of the rule, and that's what makes Carolyn Mcclanahan take its latest report with a grain of salt. "Their agenda is that they don't want the fiduciary rule to pass," said Ms. Mcclanahan, founder of Life Planning Partners. "You can skew studies to say what you want them to say." The Chamber brushed off criticism of its examination of recent comment letters about the fiduciary rule. "A consistent set of themes emerges from the compilation of this data: small-dollar investors will lose out if this rule goes into effect," David Hirschmann, president and chief executive of the Chamber's Center for Capital Markets Competitiveness, said in a statement. "For example, 11 million households with brokerage IRAs will either be dumped from their plans, they'll have fewer choices with less advice, or they'll be subject to a more expensive advisory relationship that may not be the right option for them." In the report, the Chamber argued that the studies that supported the rule as it was finalized during the Obama administration were flawed. "Throughout the rulemaking process, the U.S. Chamber warned that the fiduciary rule was built upon a mountain of flawed data and analysis and would harm the very people it was purported to protect by raising costs and limiting investment options," the Chamber report states. "The theoretical academic exercises underlying the rule are giving way to hard evidence, and the evidence is coming in showing that the rule is harming investors." But Ms. Mcclanahan said that the data the Chamber cites doesn't prove its point because it is based on surveys of firms. "It's not a scientific study," she said. It also doesn't account for the reality of market dynamics, according to Wyatt Moerdyk, owner of Evidence Advisors Investment Management. "There are advisers like myself who can figure out ways to efficiently advise small accounts," Mr. Moerdyk said. Supporters of the regulation say it is needed to protect investors from conflicted advice that results in the sales of inappropriate high-fee products that erode savings. Article 6 Fiduciary rule not dead yet, compliance begins June 9 Compliance Week Joe Month 5/31 While watching the Trump Administration fall into place, notably with the naming of Labor Secretary Alexander Acosta, there was a widespread assumption that clarity on the agency's controversial fiduciary rule, and perhaps relief, would soon be offered. That wasn't exactly what happened and Acosta took a surprising route for an announcement that all remains on track for the scheduled June 9 compliance date. Rather than a press release or transcribed speech, he laid out the important announcement in an opinion piece in the Wall Street Journal. In April 2016, the Department of Labor finalized a new rule that creates a fiduciary duty for brokers and registered investment advisers who offer retirement advice. It provides exemptions that, if applied for and granted, would allow these advisers to maintain fee-based arrangements. In general, fiduciaries are prohibited from receiving commissions, which are considered to present a conflict of interest. The new rule, however, creates a Best Interest Contract Exemption for fixed index annuities and variable annuities. It allows fiduciaries to receive commissions only if they adhere to certain conditions, including signing a written contract DOL-17-0281-K-000468 AO 836892 OSEC 000468 with the consumer that contains enumerated provisions intended to protect their interests. In February, President Trump ended his second full week in office by ordering the Labor Department to review the rule and prepare an updated economic and legal analysis. If it concludes that the rule is "inconsistent" with Administration priorities, it was instructed to rescind or revise the rule as appropriate . The May 22 piece clarifies that even deregulatory zeal is no match for the rule of law, notably the Administrative Procedure Act, and its requirements for notice and seek public comment. "The process ensures that all Americans-workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed," Acosta wrote. "Agency heads have a legal duty to consider all the views expressed before adopting a final rule." "The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so," he added. "We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for a complete delay of the rule." "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Acosta wrote. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." In March, in response to the presidential memorandum, the Labor Department announced a 60-day extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract (BIC) Exemption. Under the terms of the extension, advisers to retirement investors must adhere to "impartial conduct standards" beginning on June 9, rather than April 10 as originally scheduled. Acosta's decision keeps that deadline intact, even if specifics of the rule may eventually be modified. SIFMA President Kenneth E. Bentsen was among industry leaders expressing both disappointment and support for Acosta's decision not to further delay the fiduciary rule beyond June 9, 2017. "While we are disappointed that the Department of Labor has chosen not to further delay the rule until the Department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input," he wrote. "In anticipation of the rule taking effect, SIFMA's members have been working for the past eighteen months to develop the systems and processes to ensure compliance . We hope that upon the Department's completion of its wholesale rule review, they will conclude, as we believe the evidence clearly shows, that dramatic and fundamental changes are appropriate and necessary." SIFMA has long -supported the creation of a best interest standard for brokers who provide personalized investment advice, "and we continue to believe that the SECis the appropriate regulator to do so," Bentsen added. "We look forward to working with the Administration and Congress on the creation of a best interest standard that protects all retail investors, while preserving choice and investment services without raising costs. On May 26, the U.S. Chamber of Commerce, in a letter to members of Congress, announced the findings of its research into the forthcoming rule requirements. It "remains seriously concerned about the impact that the Department of Labor's misguided 'fiduciary' rule is having upon low and moderate income savers, as well as small businesses that are looking to help their employees save for retirement," it wrote, calling the economic analysis supporting the final rule was "fundamentally flawed" and it would "harm the very investors it was purported to protect." The Chamber' report cites a recent survey that found that 35 percent of advisers will no longer serve accounts under $25,000 because of the rule. Also, a large mutual fund provider reported that its number of "orphaned" accounts nearly doubled in the first three months of 2017. DOL-17-0281-K-000469 AO 836892 OSEC 000469 It claims that 70 percent of insurance service providers report that they have exited or are considering exiting the market for small balance individual retirement accounts. "Such examples help tell the real-life story of a rule that was built upon a faulty premise," the Chamber wrote. "The fiduciary rule has made it harder for workers to receive financial education and save for retirement." Among the statistics presented in the Chamber's report: • • • 92 percent of firms surveyed say that the Rule could limit or restrict investment products for their customers, which could ultimately effect some 11 million households; up to 7 million individual retirement account (IRA) owners could lose access to investment advice altogether; and a survey of insurance service providers shows 70 percent already have or are considering exiting the market for small balance IRAs and small plans, and half are preparing to raise minimum account requirements for IRAs. A separate survey of advisors finds 71 percent will stop providing advice to at least some of their current small accounts due to the risk and increased costs of the rule. Article 7 Study says investors could lose big if Trump administration deep-sixes 'fiduciary rule' St. Louis Post-Dispatch Chuck Raasch 5/31 Missouri investors could lose $337 million annually if President Donald Trump's administration rolls back the "fiduciary rule," a regulation put in place by the president's predecessor and set to begin going into effect next week, according to a new study. The liberal think tank, Economic Policy Institute, says it has looked at savers who have money in investments that receive "conflicted advice." The study concluded that U.S. savers annually lose $17 billion to high fees, high trading costs, bad risk decisions, and other factors, based on advice from advisers who may not be putting savers' interests first. Illinois savers lose $932 million annually from such advice, according to the EPI study. Former President Barack Obama's administration imposed the rule, which would require financial advisers to put the interests of clients first, a rule that Democrats say is designed to protect investors. But Republicans, including some from the St. Louis region who have been leaders in the opposition, say the rule is not necessary and could end up hurting small investors because advisers would not want to take them as clients. The rule is set to begin going into effect on June 9, but the Trump administration has already delayed it and the president and congressional Republicans have been looking for ways to legally and legislatively take it off the books. Just days into his presidency, with Rep. Ann Wagner, R-Ballwin, at his side, Trump signed an executive order directing the Labor Department to conduct a fresh study of its effect, despite an Obama-era study that showed that "adviser conflicts are inflicting large, avoidable losses on retirement investors." The Labor Department, through which the rule is being implemented, delayed the start of the rule until next week. Labor Secretary Alexander Acosta said that the review had "found no principled legal basis" to continue to stay the implementation of the new rule while it continued to study its impact. The St. Louis area has three members on the House Financial Services Committee, which has been battling over this issue for years. Wagner and Rep. Blaine Luetkemeyer, R-St. Elizabeth, have been vocal opponents of the rule, and say it stymies free enterprise in the financial markets. DOL-17-0281-K-000470 AO 836892 OSEC 0004 70 "I am incredibly disappointed the misguided fiduciary rule will not continue to be delayed or overturned by the Department of Labor," Luetkemeyer said. "I will continue to work with my colleagues in the House of Representatives and in the Administration to reverse this decision." Wagner said that "while bad actors exist and should be punished, the DOL fiduciary rule as written will harm the very low and middle income retirement savers it aims to protect." She said she is "working on a best-interest standard that meets the goal of protecting all retirement savers and their access to service." Rep. William Lacy Clay, D-St. Louis, supports the rule, and agrees with fellow Democrats that it is designed to protect investors. http://www.epi.org/publication/here-is-whats-at-stake-with-the-conflict-of-interest-fiduciary-rule/ - Economic Policy Institute analysis on what happens if the "fiduciary rule" requiring financial advisers to put clients first is eliminated . -·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-, Not Responsive DOL-17-0281-K-000471 AO 836892 OSEC 0004 71 Not Responsive DOL-17-0281-K-000472 AO 836892 OSEC 0004 72 Not Responsive DOL-17-0281-K-000473 AO 836892 OSEC 0004 73 Not Responsive DOL-17-0281-K-000474 AO 836892 OSEC 0004 74 Not Responsive DOL-17-0281-K-000475 AO 836892 OSEC 000475 Not Responsive DOL-17-0281-K-000476 AO 836892 OSEC 0004 76 Not Responsive DOL-17-0281-K-000477 AO 836892 OSEC 0004 77 Not Responsive DOL-17-0281-K-000478 AO 836892 OSEC 000478 Not Responsive DOL-17-0281-K-000479 AO 836892 OSEC 0004 79 Message From: Sent: To: CC: Subject: Smith, Gavin J - OSEC [/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=BC69870591DB49D58F90AF9C13C4EC60-SMITH, GAVI] 6/1/2017 8:00:55 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en =15dc286768d945dc9fcda83 7095195fd-RA Acosta] Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=525c2057d4a 14206a99bf3aa8a80e004-Pal mer, Way]; Hazelton, Jennifer OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Lineberger, Timothy LOSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en =ea5 lb4207 e234b5 783 7a 72e6592289a 7 -Lineberger,] Morning Clips News Clips: 6/1/17 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. i' I i i._. ·-·-·-·-·-·-·-·-·-·-·-·-· 05/31 Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· The National Law Review I i ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Department of Labor Releases New Fiduciary Rule Enforcement Policy and FAQs 'i .i Click Here Not Responsive DOL-17-0281-K-000480 AO 836892 OSEC 000480 Not Responsive --·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 2 Title: Department of Labor Releases New Fiduciary Rule Enforcement Policy and FAQs Paper: The National Law Review Author: Bruce Ashton Date: 05/31/2017 Text Despite rumors to the contrary, the June 9 applicability date for the Fiduciary Rule remains unchanged (though compliance is not required until 11:59 PM on that day). The DOL confirmed this through the release this week of a and new j\Jn (FAQs) regarding the Fiduciary Rule transition period (June 9, 2017 to December 31, 2017). This Alert is our first in a series. It provides a brief overview of the guidance. Subsequent Alerts will focus on the issues relevant to specific businesses. Here are the highlights: -[if !supportLists ]-->• Applicability Date: June 9 is the applicability date for the fiduciary regulation itself and for the exemptions released in conjunction with the regulation. -[if !supportLists ]-->• Grandfathering: transactions entered into prior to the "applicability Under the Best Interest Contract Exemption (BICE), date" remain in effect on their existing terms (subject to various conditions and limitations). The guidance confirms that June 9 is the deadline for grandfathered accounts. -[if !supportLists]-->• Changes May be Ahead: The DOL will solicit additional public input for possible regulatory changes to the Fiduciary Rule and its exemptions in the form of a Request for Information (RFI). The RFI will DOL-17-0281-K-000481 AO 836892 OSEC 000481 include questions implementation" on whether the transition period should be further extended "to allow for a smoother of new business models and other market changes that have been introduced in preparation for the Fiduciary Rule's applicability date. Thus, it is possible that the reduced compliance requirements of the transition period could be extended beyond the end of the year. -[if !supportLists]-->• Temporary Enforcement Policy: During the transition period, the DOL and the IRSwill not pursue claims against fiduciaries "who are working diligently and in good faith to comply" with the Fiduciary Rule and its exemptions. It is not entirely clear what this standard requires, though the DOL did give some hints (discussed later) . However, the DOL pointed out that this temporary enforcement policy will not prevent private litigation. -[if !supportLists]-->• requirements Transition BICE: The FAQs confirm that during the transition period, the only for BICE that will apply are the Impartial Conduct Standards (i.e., the "best interest" standard, no misleading statements, and reasonable compensation). Other requirements of BICE, such as disclosures and contracts, will not be required. The FAQs also explain that robo-advice providers that receive a level fee - as well as other level-fee advisers to the extent necessary - may rely on BICE during the transition period, so long as they comply with the Impartial Conduct Standards. -[if !supportLists]-->• Policies and Procedures: Notwithstanding the acknowledgement that only the Impartial Conduct Standards must be satisfied under BICE during the transition period, the DOL says that it expects financial institutions "to adopt such policies and procedures as they reasonably conclude are necessary to ensure advisers" comply with those standards. The DOL goes on to suggest various ways that firms may safeguard compliance, including increased monitoring and surveillance of adviser sales practices and recommendations, and documenting the bases for recommendations. Though not clear, this may be a requirement to show that fiduciaries are "working diligently and in good faith to comply." -[if !supportLists ]-->• PTE84-24: The FAQs confirm that PTE 84-24, as it existed prior to the Fiduciary Rule, remains in force except that the Impartial Conduct Standards must also be satisfied. The DOL also explains that PTE 84-24 relief during the transition period is available for the payment of commissions to insurance agents, brokers, pension consultants and investment company principal underwriters, even if a portion of that commission is paid to another entity, such as an independent marketing organization in the form of a gross dealer concession, override or similar payment. -[if! supportLists]-->• Participant Communications: The FAQs provide several examples of participant communications that would be considered educational (i.e., offering plan information and general financial, investment and retirement information) and not fiduciary advice. We will discuss some of the details in subsequent alerts. -[if !supportLists]-->• Transactions says that recommendations With an Independent Fiduciary: An exception in the Fiduciary Rule made to an independent fiduciary with financial expertise are not considered investment advice. The entities that are considered "independent fiduciaries" are banks, insurance carriers, broker dealers, registered investment advisers or other independent fiduciaries that manage or control at least $50 million. For this exception to apply, the party making the recommendation the definition. written must reasonably believe that the independent fiduciary fits In the FAQs, the DOL explains that the reasonable belief requirement can be satisfied by relying on a representation from the counterparty, and that negative consent to a written representation satisfies this condition. While the guidance contains few surprises, firms and advisers should take note of the DOL's emphasis on compliance with the Impartial Conduct Standards and, in particular, the expectation that firms will adopt policies and procedures that insure compliance with these standards. DOL-17-0281-K-000482 AO 836892 OSEC 000482 Not Responsive DOL-17-0281-K-000483 AO 836892 OSEC 000483 Message From: Sent: To: CC: Subject: Smith, Gavin J - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=BC69870591DB49D58F90AF9C13C4EC60-SMITH,GAVI] 6/1/2017 6:05:34 PM RA Acosta [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Rogers, Jillian B - OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Hazelton, Jennifer - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Palmer, Wayne D OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Gamble, Bennett B OPA [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Mannix, Patrick M OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Conway, Molly E - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicholas C. - SOL [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Lineberger, Timothy LOSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=ea5 lb4207 e234b5 783 7a 72e6592289a 7 -Lineberger,] Re: Evening Clips 06/01 Not Responsive From: Gavin Smith [_____________________ (b )(6) -·-·-·-·-·-·-·-·-·-· 7 Date: Thursday, June 1, 2017 at 5:36 PM To: RA Acosta!._ ___________________ (b)(S) _____________________ i 11 11 Cc: Rogers, Ji 11i an B - OSEC [::::::::::::::::::::::(~1@:::::::::::::::::::::J Haze Ito n, Jennifer - OSEC [~~~~~~~~~~~~~~~~~~~~~J~Kef.C~~~~~~~~~~~~~~~~~~~J II 11 DOL-17-0281-K-000484 AO 836892 OSEC 000484 [:~:~:~:~:~:~:~:~:~:~:J~i.(sf~:~:~:~:~:~:~:~:~:~:J [:~:~:~:~:~:~:~:~:~:~J~: [-~--~--~--~--~--~--~--~--~--~--~--~_@J~C--~--~--~--~--~--~--~--~ "Palmer, Wayne D - OSEC" "Gamble, Bennett B - OPA" "Mannix, Patrick M - OSEC" "Conway, Molly E - OSEC" [_~-~-~-~-~-~-~-~-~-~-~-~[bjl~L_~-~-~-~ "Gea Ie, Nich o Ias C. - SOL" [~~~~~~~~~~~~~~~~~~~~~J~j(~L~~~~~~~~~~~~~~~~~~~J "Lineberger, Timothy L - OSEC" Subject: Evening Clips 06/01 [:~:~:~:~:~:~:~:~:~:~:~ --- 01 17 Not Responsive 06/01 The Wall Street Journal ,-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· i "Labor Should Delay Fiduciary Rule Kickoff" ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Click Here ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 Not Responsive ! . -·-·-·-·-·-·-·-·-·-·-·- 06/01 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· On Wall Street i ! ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i "UBS amends broker pay as part of fiduciary compliance plans" Click Here Not Responsive ·-·-·- -·-·-·-·-·-·-·-·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· -·-r-·---·--·-~r-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 06/01 National Law Review Department of Labor Confirms June 9 th as Effective ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Click Here Date of Fiduciary Rule: What Employers Need to Know Now Not Responsive DOL-17-0281-K-000485 AO 836892 OSEC 000485 Not Responsive DOL-17-0281-K-000486 AO 836892 OSEC 000486 Not Responsive Article 3 Title: "Labor Should Delay Fiduciary Rule Kickoff' Paper: The Wall StreetJournal Author: Not listed Date: 06/01/2017 Text: Regarding Labor Secretary Alexander Acosta's "Deregulators Must Follow the Law, So Regulators \Viii Too" (op-ed, DOL-17-0281-K-000487 AO 836892 OSEC 000487 May 23): President Obama's former Labor Secretary Torn Perez set out to give a great gift to the trial lawyers: the ability to sue all financial institutions whenever the market goes down. And he achieved that goal in designing the so-called Fiduciary Rule that governs retirement advice. This Obama-Perez rule harms middle-class Americans, who will either lose access to advice or pay much more for it in the form of continuous substantial fees rather than one-time commissions. With the threat oflawsuits whenever the market goes down, fees for advice will skyrocket, and only the wealthy will be able to afford personalized help with their retirement I applaud President Trump for recogniz ing the flaws of th is big-government regulation and taking a proactive stance on this issue by directing the Labor Department on Feb. 3 to further study the new rule, originally scheduled to take effect on April 9. The department subsequently delayed the application of the Fiduciary Rule until June 9. Secretary Acosta has announced that the department needs more time to consider its options for addressing this rule. But instead of further delaying the application beyond June 9, the department is allowing the rule to go into effect By allowing this Obama-era rule to move forward, the administration is abandoning its responsibility to protect the availability of retirement options for middle-class Americans. I urge the Labor Department to rethink its decision. It has one week to dec ide between the trial lawyers and hardworking Americans. Sen. Johnny Isakson (R., Ga,) Washington Secretary Acosta correctly points out the importance of not "casting aside the thicket" of law that ensures that the government doesn't act on "regulatory whim.'' But when it comes to the Labor Department's Fiduciary Rule, Americans saving for retirement have been left vulnerable to lobbying whim. Lobbyists for Wall Street's biggest brokers-for large portion of their wealth-management whom commissions on the sale of financial products account for a revenue-succeeded in inserting an exemption to the Fiduciary Rule: the Best Interest Contract Exemption. or BICE.This exempt ion allows financial advisers to act as fiduciaries who must put their clients' interests first-some but not all of the time when handling retirement assets. What if your family doctor asked you to sign a contract that exempted her from upholding the Hippocrat ic Oath all of the time? She could put your interests first Monday through Thursday and then shin gears on Friday to a different standard. That's what the BICE does. A meaningful review of the Fiduciary Rule should result in the elimination of the BICE.If we're going to have a Fiduciary Rule that eliminates conflicts of interest, it should require all financial advisers to put their clients' DOL-17-0281-K-000488 AO 836892 OSEC 000488 interests first all of the time, with no exemptions. I wouldn't hold my breath. Elliot Weissbluth CEO,HighTower Chicago Nothing in the Administrative Procedure Act precludes the department from delaying implementation until the U.S. Court of Appeals for the Fifth Circuit passes judgment on the rule's statutory and constitutional propriety. Second, serious First Amendment problems-which the Labor Department never properly considered-bedevil the Fiduciary Rule, very much including the portion slated to go into effect on June 9. If Secretary Acosta were serious about honoring the rule oflaw, he would not force a job-killing overhaul of the retirement-advice industry without waiting for the Fifth Circuit to weigh in on the Fiduciary Rule's legality. Mark Chenoweth Washington Mr. Chenoweth has filed an amicus brief in support of the parties challenging the Fiduciary Rule. Not Responsive DOL-17-0281-K-000489 AO 836892 OSEC 000489 Not Responsive -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 5 Title: "UBSamends broker pay as part of fiduciary compliance plans" Paper: OnWaUStreet Author: Andrew Welsch Date: 06/01/2017 Text: With the fiduciary rule set to go into effect next week, UBS is tweaking the way it compensates brokers for advising on clients' retirement assets as part of its plans to comply with the regulation. The move is intended to preserve clients' ability to choose how they want to pay for services while enabling the firm to avoid conflicts of interest that the regulation targets, execut ives say. UBS intends to maintain a commissionbased offering using the rule's best interest contract exemption. "Different firms are making different decisions," says Tom Naratil, President of UBSWealth Management Americas. "We've made the choice that we feel is the most client centric and adviser focused." The decision is also the latest among wealth management firms that have spent the past year strategizing on how to avoid alienating clients or advisers while still staying in regulator's good graces. Starting on June 9, the fiduciary rule's applicability date, UBS advisers will be paid for advising on retirement assets using a formula that takes into account the FA's production based on retirement assets in 2016. For instance, consider an adviser who generated $1 million in revenue last year from $50 million in retirement assets. If he oversees the same assets for the remainder of 2017, he would be paid the same amount regardless of what transactions the adviser recommends, according to UBS.If the adviser were to double the retirement assets under management to $100 million, however, he would double his compensation from the prior year. The client, meanwhile, would continue paying for services, whether it be commission or fee-based , the same way as before. "Whether you did a transaction or not, [the adviser] will get paid the same way. So the advice he is giving is not affected by the way he is getting paid," Naratil says, emphasizing that the traditional comp grid brokerages use isn't going away. This strategy addresses the rule's primary concern regarding conflicts of interest, Naratil adds. "If [the adviser] gets paid more if he recommends a transaction, how can you prove he wasn't conflicted? So this is our solution," he says. The changes to adviser pay are only for 2017, and, executives emphasize, only apply to retirement assets. UBS will review them later this year with an eye toward whether they are working or even still necessary, given the Labor Department may amend its regulation. DOL-17-0281-K-000490 AO 836892 OSEC 000490 ADVISERINPUT The wirehouse's decision, unveiled to brokers Thursday, comes aner Secretary of Labor Alexander Acosta declined to further delay the regulation's applicability date beyond June 9. Unlike some of its competitors, UBS had been relatively mum about how it would comply with the rule. It was an intentional strategy, according to NaratiJ, who noted that the department had indicated that it would issue additional regulatory guidance, some of which was released in recent months. "As we looked at choices others made over the last year or so, we saw advisers were getting more upset about the removal of choice," Naratil says. Best pay for the $1M adviser at wi.rehm.1se and regional BDs A comparison of starting payouts under this year's compensation plans. He adds that UBS advisers said they considered preserving client choice as a top priority. Some rival brokerage firms, such as Raymond James and Morgan Stanley, have also said they would maintain commission-based offerings using the best interest contract exemption. Merrill Lynch, on the other hand, was the most prominent firms to say it would cease offering commission-based retirement accounts. Last year, the bank said that clients seeking such an offering could instead opt to use its selfdirected platform Merrill Edge or its forthcoming digital advice platform. Some advisers, however, took issue with that decision and opted to leave Merrill Lynch for rival firms. For the first quarter, Merrill reported that its brokerage force shrank by 145 advisers from the prior period, dropping to 14,484. Last month, Merrill Lynd1 said it wouk! relax its commission ban. FUTUREMODIFICATIONS Naratil says the firm's decis ion also took into accountthe still somewhat uncerta in nature of the fiduciary rule. "You need something that you could in theory turn off [if required]," he says. The Labor Department's review of the regulation, ordered by President Trump in February, is ongoing. Industry experts anticipate the department is likely to make few amendments to the rule . "I think the BIC could be modified, but I don't think fiduciary is going away," says Denise Valentine, a senior analyst at research firm Aite Group. She expects other firms may make adjustments to their fiduciary compliance plans as they get more feedback from clients and advisers as well as additional guidance from the Labor Department. "It's not like someone is going to hold a gun to your head and say you can't change your mind," she says. DOL-17-0281-K-000491 AO 836892 OSEC 000491 For his part , Naratil expects to have ongoing conversations with regulators, including the Labor Department. UBS supports a best interest standard across all aspects of the client relationship but under the SEC,according to Naratil. He noted that Acosta, in announcing his decision not to delay the rule, said he would include the SEC as part of his ongoing review of the regulation. "We were happy to see that and it's the right direction to go," Naratil says. Not Responsive DOL-17-0281-K-000492 AO 836892 OSEC 000492 Not Responsive DOL-17-0281-K-000493 AO 836892 OSEC 000493 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·~ 'i Not Responsive I i ' i I i i._____·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i Article 8 Title: Department of Labor Confirms June 9 th as Effective Date of Fiduciary Rule: What Employers Need to Know Now Paper: The National Law Review Author: Eric Gregory Date: 06/01/2017 Text: On May 22, 2017, Secretary of Labor Jim Acosta announced that, after having been delayed 60 days, the Department of Labor's ("DOL") Conflict of Interest Rule ("Fiduciary Rule") will largely apply on June 9, 2017. At that time, an expanded definition of "fiduciary" will go into effect and "Impartial Conduct Standards' will be a requirement of certain prohibited transaction exemptions. As a consequence, some service providers, such as broker and recordkeepers, may find that they are now fiduciaries. Employers, in their role as plan fiduciaries, have an increased obligation to monitor the activities of these additional fiduciaries so to ensure that the activity is exempt from the prohibited transaction rules. This article provides a brief overview of the Fiduciary Rule and outlines some practical steps that employers can follow to ensure compliance in light of its implementation . What Becomes Effective on June 9? Under the new Fiduciary Rule, the previous five-part test for defining who is a fiduciary that provides investment advice is replaced with a new objective inquiry test Under the new test, any communication that meets the following requirements constitutes fiduciary investment advice: l. A "recommendation" regarding specific investment transactions advice related to rollovers; or investment management, including 2. Directed at a plan, plan participant, beneficiary, IRA or IRA owner; 3. For a fee or other compensation, direct or indirect; and 4. Made directly or indirectly by a person who acknowledges fiduciary status, has an agreement or understanding with a recipient that the advice is tailored to him/her, or otherwise tailors specific advice to a specific recipient or recipients. A "recommendation" is a "communication that, based on its content, context, and presentation, would reasonably be viewed as a suggestion that the advice recipient engage in or refrain from taking a particular course of action." The more individually-tailored a communication is, the more likely it would be a recommendation. Fiduciaries who receive commissions or other variable compensation (as broadly defined in the new Fiduciary Rule) must comply with the Impartial Conduct Standards on June 9, 2017. These standards generally require that the fiduciary: 1. Give advice that is in the retirement investor's best interest; 2. Charge no more than "reasonable compensation"; and 3. Make no misleading statements about investment transactions, compensation, and conflicts of interest Fiduciaries impacted by these regulations temporarily benefit from a "good faith" compliance transition period until January 1, 2018, when additional disclosure and contractual obligations will go into effect During the DOL-17-0281-K-000494 AO 836892 OSEC 000494 transition period, the DOL intends to focus on compliance assistance rather than penalty enforcement, as long as fiduciaries act in good faith. How Does the Fiduciary Rule Impact Employers Sponsoring Retirement Plans? The Fiduciary Rule's main impact on employers will involve interactions between recordkeepers advisors regarding investment lineups, distributions and rollovers. and investment During the next few weeks, there are a number of steps that plan sponsors can take to proactively prepare for the implementation of the Fiduciary Rule. Ensure you have prudent processes and procedures. Document all evaluation and monitoring of plan service providers, ensuring that fees are reasonable and all services are necessary; establish effective internal controls to evaluate plan operations; review, maintain, and update any investment policy statement; and ensure that formal fiduciary training is regularly provided. Evaluate whether employees are acting as fiduciaries. Ensure that human resources and finance employees are not providing fiduciary advice to participants. Generally speaking, employees may discuss plan rules, investment options, and distribution options without becoming fiduciaries, so long as the employees are not giving particularized advice. Employees may also provide reports to retirement fiduciaries (e.g., regarding enrollment or investment performance) without becoming fiduciaries, so long as those employees are not receiving additional compensation for those services beyond their normal pay. Review agreements with your recordkeeper. Determine whether your recordkeeper is acknowledging fiduciary status for either investment lineup choices or call center advice to participants. Some recordkeepers are assuming "point-in-time" fiduciary status for making investment lineup suggestions under which they accept fiduciary status only at the time of the specific investment communication with participants, but are disclaiming an ongoing fiduciary duty to monitor the propriety of those investments. Other recordkeepers are acknowledging fiduciary status with respect to participant call-center investment and rollover advice. On the other end of the spectrum, some recordkeepers maintain that all of their interactions with plan fiduciaries and participants are non-fiduciary in nature. Some recordkeepers are making changes to agreements via negative consent (i.e., unless the plan sponsor responds, it will assume the plan sponsor consents to the change). It is critical that plan sponsors understand the position that their recordkeeper is taking and ensure that their recordkeeper acknowledge its fiduciary status if it is acting as a fiduciary. Plan sponsors should review investment education materials, rollover and distribution forms, call center scripts as they relate to rollovers, and other recordkeeping related processes to be sure they reflect the requirements of the Fiduciary Rule. Review agreements with your investment advisor. Plan fiduciaries must understand the services that are being provided by the plan's investment advisor. Plan sponsors should have a clear understanding of whether their advisor is acting either as a broker or as a registered investment advisor ("RIA"). If the advisor is acting as a broker, and the advisor is directly or indirectly receiving commissions, 12b-1 fees, trailing payments, asset-based revenue sharing, solicitor's fees, or payments from custodians, as a result of investment or insurance recommendations, the payments would be prohibited transactions, unless an exemption applies. If the advisor is an RIA, ensure that it has acknowledged its fiduciary status in writing. Continue to monitor fiduciaries. If a service provider has assumed fiduciary status or expanded the scope of its services so that they are fiduciary in nature, the plan sponsor has an increased burden to monitor its performance, because of the duty to monitor imposed by ERISA. Any subsequent notification from that service provider that purports to limit or disclaim future fiduciary responsibility should be reviewed carefully. If a service provider determines it will not be a fiduciary and is not going to continue to provide certain services such as distribution or rollover guidance, a plan sponsor should consider the impact of the loss of these services on participants, and DOL-17-0281-K-000495 AO 836892 OSEC 000495 should consider other options for assisting participants when these events arise. Conclusion Even though the Fiduciary Rule is being implemented on June 9, the DOL's review is ongoing. The DOL plans to request information from the public as part of its continued examination of the Fiduciary Rule, and may consider further delays or revisions based on the responses it receives. We continue to monitor these developments. My very best, Gavin l Smith I Communications United States Department of Labor i~))\ L(b) (G)_rail/text) ! :___________________ (b )(6) ___________________ DOL-17-0281-K-000496 AO 836892 OSEC 000496 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/2/2017 7:08:56 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Conway, Molly E - OSEC[/o=Exchangelabs/ou=Exchange Admin istrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Adm inistrat ive Group (FYDIBOHF23SPDLT)/cn=Recipients/en=da824alfa6d64alda373f567ae34ed06-Gea le, Nich ]; Gamb le, Bennett B OPA [/o=Exchangelabs / ou=Exchange Admin ist rat ive Group (FYDIBOHF23SPDLT)/cn=Recipient s/en=97bd7645666947ffa4fd f 78ffe13b871-Ga m ble, Ben]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Ad ministrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exc hangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipien t s/en=2fla4b386 fl b458892d4a3048ded008e-Mannix, Pat]; Hazelton, Jennif er OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=8230e055ed214ebeba3584513464f3bl -Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Admi nistrati ve Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=03b9ff7682664 75f9 3c70c70f7aef9be-Rogers, Jii] Morning Clips 6/2 Morning News Clips: 6/2/17 Not Responsive 6/1 Investment News SECsolicits comment on conduct standards for advisers and brokers Click Here 6/1 Investment News As fiduciary debate slogs on, both sides will be dragged through the mud Click Here Not Responsive DOL-17-0281-K-000497 AO 836892 OSEC 000497 Not Responsive DOL-17-0281-K-000498 AO 836892 OSEC 000498 Not Responsive DOL-17-0281-K-000499 AO 836892 OSEC 000499 Not Responsive DOL-17-0281-K-000500 AO 836892 OSEC 000500 Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 6 SECsolicits comment on conduct standards fo r advisers and broker s Investment News Mark Schoeff Jr. 6/1 The Securities and Exchange Commission announced Thursday that it is again seeking publi c comment on investmentadvice standards, restarting its consideration of a fiduciary duty regulation while a similar measure promulgated by the Labor Department is undergoing a reassessment. In the request, SECChairman Jay Clayton said that the DOL rule, which requires financial advisers to act in the best interests of their clients in retirement accounts, covers much of the same investor-protection ground that the SEC patrols. In a recent Wall Street Journal oped, Labor Secretary Alexander Acosta said that he wants the DOL and SECto work together on investment-advice regulation. "I welcome the Department of Labor's invitation to engage constructively as the commission moves forward with its examination of the standards of conduct applicable to investment advisers and broker-dealers and related matters," Mr. Clayton wrote in the comment request. "I believe clarity and consistency -- and in areas overseen by more than one DOL-17-0281-K-000501 AO 836892 OSEC 000501 regulatory body, coordination -- are key elements of effective oversight and regulation." But an advocate for the DOL rule is wary of explicit linkage between the DOL rule and a potential SECregulation. "It is frankly troubling that Chairman Clayton frames his announcement as a response to DOL Secretary Acosta's call for further input," Barbara Roper, director of investor protection at the Consumer Federation of America, said in a statement. "Industry opponents of the DOL fiduciary rule have made no secret of their desire to replace the DOL fiduciary rule with a watered down, disclosure-based approach from the SEC.Moreover, Chairman Clayton's statement, like Secretary Acosta's statement before it, appears to ignore the extensive input the SECalready provided to DOL as it drafted the current rule." She said that the DOL rule covers retirement-plan over which the SEChas no jurisdiction. sponsors and non-securities investments, such as insurance products, "This announcement must, therefore, not be allowed to delay or undermine implementation of the DOL rule," Ms. Roper said. "Instead, we encourage the SECto look to the DOL rule as a model for how to apply a fiduciary standard to broker-dealers' conflicted business model." The DOL is reviewing its rule, which will begin to be implemented on June 9, under a mandate from President Donald J. Trump that could lead to its modification or repeal. The SECwas given authority by the Dodd-Frank financial reform law to promulgate a uniform fiduciary standard for retail investment advice but has failed to act since then due to political divisions on the commission. The SECissued a request for comment in 2013 for a cost-benefit analysis of fiduciary duty, following a 2011 staff report recommending that agency promulgate an investment-advice rule. "Significant developments in the marketplace since the Commission last solicited information from the public in 2013 include financial innovations, changes to investment adviser and broker-dealer business models, and regulatory developments - including the issuance and pending applicability of the Department of Labor's fiduciary rule," Mr. Clayton wrote. "In light of these developments, I believe an updated assessment of the current regulatory framework, the current state of the market for retail investment advice, and market trends is important to the commission's ability to evaluate the range of potential regulatory actions." The comment request includes 17 areas of examination with multiple embedded questions that range from defining "investment advice" to exploring whether investors are confused by differing standards of conduct between investment advisers and brokers to recommending whether the SECshould proceed with a "disclosure-based approach" or a "standards-of-conduct-based approach." Mr. Clayton's predecessor as SECchairman, Mary Jo White, came out in support of a uniform fiduciary standard but could not generate support for a proposal from a majority of the five-person commission. Article 7 As fiduciary debate slogs on, both sides will be dragged through the mud Investment News Mark Schoeff Jr. 6/1 The endless debate over investment-advice standards will continue through at least the end of the year, thanks to the Labor Department's review of its fiduciary rule. As the conflict slogs ahead, an industry leader and some advisers worry that both sides will be dragged through the mud. Along the way, we'll have the umpteenth round of the fight over who is looking out for "Main Street" and who is doing the bidding of "Wall Street." That's a schism that concerns Blaine Aikin, executive chairman of Fi360, a fiduciary training DOL-17-0281-K-000502 AO 836892 OSEC 000502 and credentialing firm. He agreed with the Obama administration's efforts to couch the rule as helping Main Street investors because it helped get it across the finish line to finalization last year. But that effort came with a cost. "In order to get the rule through, that's a strong card to play," Mr. Aikin said at Fi360's annual conference last month in Nashville. "But it does hurt our reputation. It does damage to everyone involved in financial services." Investors will get lost in all the noise and then "we all get painted with the same brush," Mr. Aikin said. "It's fine to call out the importance of the fiduciary standard but the divisive type of rhetoric we often use ultimately is not helpful," he said. "It 's much better for us to concentrate on elevating the profession than it is to further promote the idea of financial services being worthy of a low reputation." Advisers at the Fi360 conference shared Mr. Aikin's assessment. "All of us in this industry are suffering from fiduciary fatigue," said Roger Levy, managing director of Cambridge Fiduciary Services. "This concept of who is a fiduciary has been argued every which way. We still don 't have an answer to the question, who can you trust?" FIGHT JUST GETTING STARTED More evidence that the fight is just getting (re)started can be found in today's Wall Street Journal, where Eugene Scalia, a top securities lawyer who is leading industry-group plaintiffs in a lawsuit against the DOL regulation, reasserts that the agency lacks the authority to promulgate the measure. He criticizes it for creating a "private right of action" that allows investors to file class-action suits against financial firms when they believe that their advisers have not acted in their best interests when it comes to retirement-savings portfolios. This is among the arguments that a Dallas federal court eviscerated earlier this year in upholding the rule. Mr. Scalia is posing his thesis again, as the case heads to an appeals court and the DOL reassesses the fiduciary rule under a mandate from President Donald J. Trump that could result in its modification or repeal. Labor Secretary Alexander Acosta has reopened a comment period about the rule and has indicated that it doesn't fit well in Mr. Trump's regulatory philosophy. Now, we're beginning to see the first of what will likely be many analyses purporting to show that the measure is harming small investors. Next will come more comment letters from advocates warning Mr. Acosta against making fundamental changes in the regulation. CONSUMERS DON'T FOLLOW David Roberts, director of fiduciary and investment compliance at Unified Trust, said that consumers don't follow each skirmish in the war. "The consumer doesn 't understand the minutaie about the debate," he said. "Why does it take 400 pages of federal code to explain the right thing to do? They don't know who to believe, so they throw up their hands." If investors are frustrated now, just wait until the Trump DOL comes out with an overhaul of the rule later this year. They'll be barraged with reaction from both sides. Not Responsive DOL-17-0281-K-000503 AO 836892 OSEC 000503 Not Responsive DOL-17-0281-K-000504 AO 836892 OSEC 000504 Not Responsive DOL-17-0281-K-000505 AO 836892 OSEC 000505 Not Responsive DOL-17-0281-K-000506 AO 836892 OSEC 000506 Not Responsive DOL-17-0281-K-000507 AO 836892 OSEC 000507 Not Responsive DOL-17-0281-K-000508 AO 836892 OSEC 000508 Not Responsive DOL-17-0281-K-000509 AO 836892 OSEC 000509 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/2/2017 6:04:09 PM RA Acosta [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Mannix, Patrick M - OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Palmer, Wayne D - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Conway, Molly E OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicho las C. - SOL [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=da824alfa6d64alda373f567ae34ed06-Geale, Nich]; Smith, Gavin J - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Hazelton, Jennifer OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Rogers, Jillian B - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=03b9ff7682664 75f9 3c70c70f7aef9be-Rogers, Jii] Evening Clips 6/2 Evening News Clips: 6/2/17 '-- Not Responsive '-- ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- 6/2 Investment News ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· SECreasserts itself on investment-advice standards, but it 's not clear whether it will overtake DOL fiduciary rule ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Click Here DOL-17-0281-K-000510 AO 836892 OSEC 000510 Not Responsive DOL-17-0281-K-000511 AO 836892 OSEC 000511 Not Responsive DOL-17-0281-K-000512 AO 836892 OSEC 000512 Not Responsive DOL-17-0281-K-000513 AO 836892 OSEC 000513 Not Responsive DOL-17-0281-K-000514 AO 836892 OSEC 000514 Not Responsive DOL-17-0281-K-000515 AO 836892 OSEC 000515 Not Responsive DOL-17-0281-K-000516 AO 836892 OSEC 000516 Not Responsive DOL-17-0281-K-000517 AO 836892 OSEC 000517 Not Responsive DOL-17-0281-K-000518 AO 836892 OSEC 000518 Not Responsive DOL-17-0281-K-000519 AO 836892 OSEC 000519 Not Responsive DOL-17-0281-K-000520 AO 836892 OSEC 000520 Not Responsive DOL-17-0281-K-000521 AO 836892 OSEC 000521 Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 10 SECreasserts itself on investment-advice standards, but it's not clear whether it wil l overtake DOL fiduciary rule Investment News Mark Schoeff Jr. 6/2 In one of his first actions as Securities and Exchange Commission chairman, Jay Clayton turned the agency 's attention to investment -advice standards, a move longed for by financial industry opponents of the Labor Department's fiduciary duty rule. But it 's not clear whether the SECwill wrest the issue away from the DOL. On Thursday, Mr. Clayton released a request for comment about fiduciary duty, an area where the DOL has taken the lead. The DOL regulation, which requires financial advisers to act in the best interests of their clients in retirement accounts, will begin implementation on June 9. But the DOL measure is undergoing a review at the direction of President Donald J. Trump that could result in its modification or repeal. Opponents assert that it is too complex and costly and encroaches on the SEC'sregulatory turf. "I am thrilled," said Norm Champ, a partner at Kirkland & Ellis and former director of the SEC'sDivision of Investment DOL-17-0281-K-000522 AO 836892 OSEC 000522 Management. "I applaud Chairman Clayton's effort to reassert SECleadership on this critical issue for investors." With the six-page comment request, Mr. Clayton is getting the SECback into the fiduciary game after seven years in which it has failed to act on authority given to it by the Dodd-Frank financial reform law to propose its own investmentadvice regulation. Mr. Champ, who was deeply involved in previous SECinternal discussions on fiduciary issues, said the SECis in a better position than DOL to develop advice policy. "As the primary regulatory of investment advisers and broker-dealers, the SECis far more qualified than the Department of Labor to create a workable solution in this area," Mr. Champ said. Mr. Clayton said he was responding to Labor Secretary Alexander Acosta's invitation for the two agencies to cooperate. That's what the Investment Company Institute, a leading critic of the DOL rule, wants to see. "The agencies ought to work together toward a single, harmonized best-interests standard," said ICI president and chief executive Paul Schott Stevens. "At the end of the day, that's the only thing that's going to serve the interests of investors and the interests of the market. I strongly commend Chairman Clayton for this initiative." Kenneth E. Bentsen Jr., president and chief executive of the Securities Industry and Financial Markets Association, echoed Mr. Stevens in a statement on Friday: "SIFMA has long-supported the creation of a best interest standard for brokers who provide personalized investment advice, and we continue to believe that the SECis the appropriate regulator to do so." Advocates for the DOL rule, who say it is needed to protect investors from inappropriate high-priced products that erode savings, warned that the SEC'swork should not undermine the DOL's efforts. "A rule considered by the SECcannot be considered as a replacement of the DOL's fiduciary rule," the Financial Planning Coalition said in a statement. "The DOL rule and any proposed SECrule would fall under different statutes and serve different purposes." The architect of the DOL rule, former assistant secretary Phyllis Borzi, said the agency has already worked extensively with the SEC. Barbara Roper, director of investor protection at the Consumer Federation of America, pointed out that the SEChas no jurisdiction over non-securities investments, such as insurance products, that the DOL rule addresses. But she doesn't see the SEC'srequest for comment, which does not yet have a deadline, as foreshadowing an SECtakeover of investment-advice policy. "It's more likely that this is a signal that the DOL and the SECwill be working in concert," Ms. Roper said. "It's being framed as a cooperative effort." The SECwould have a hard time trumping the DOL rule because it will soon become applicable. Only Congress can stop the DOL, said Duane Thompson, senior policy analyst at Fi360, a fiduciary training and accreditation firm. The House is set to vote next week on legislation written by House Financial Services Committee Chairman Jeb Hensarling, R-Texas, that contains a provision to kill the DOL rule. "The genie's out of the bottle," Mr. Thompson said. "Unless Congress passes the Hensarling bill, which puts the SECin the driver's seat, there's not much the SECcan do. It's highly unlikely to get enough [Senate] Democratic support to repeal the DOL rule." Article 11 DOL-17-0281-K-000523 AO 836892 OSEC 000523 As SECinches forward on fiduciary, can advisers expect action this time? On Wall Street Andrew Welsch and Tobias Salinger 6/2 The SEC'stentative steps into the ongoing fight over the fiduciary rule drew industry praise while also raising questions. Chairman Jay Clayton asked for renewed public input, leaving many wondering: After being authorized to craft its own fiduciary rule since 2010, is the SECfinally going to act? "While we look forward to working with the commission to develop a strong, pro-consumer standard, experience has taught us to take these commitments with a grain of salt," says Barbara Roper, director of consumer protection at the Consumer Federation of America. Indeed, Clayton's predecessor, Mary Jo White, said for several years that a fiduciary standard was a high priority for her. The commission was authorized to create one under Dodd-Frank. But the SEC'scommissioners were often at odds, and though studies were done, no action was ultimately taken. Clayton, who was confirmed by the Senate a month ago, may have been spurred to return to the fiduciary issue following Secretary of Labor Alexander Acosta's decision not to further delay his agency's June 9 implementation date. In announcing that decision in a Wall Street Journal opinion article, Acosta asked the SECto engage on the matter as a "full participant." In a memo issued Thursday asking the public for comment, Clayton pledged to do so. "Given the significance of these issues - in particular, for retail investors looking to save for the things that matter most to them, including homeownership, education and retirement - I look forward to robust, substantive input that will advance and inform the SEC'sassessment of possible future actions," Clayton wrote. COORDINATION Although some industry observers may have a sense of deja vu seeing an SECchief call for action on a fiduciary standard, others suggest this time may be different. "I think it's a very positive development. When you listen to both Secretary Acosta and Chair Clayton, it 's clear that they are working on coordinating a response," says Bradford Campbell, a partner at law firm Drinker Biddle. The regulatory environment has changed significantly because the Labor Department's rule is now going into effect, impacting millions of Americans saving for retirement, he says. "It's not a question of when it will happen; it is happening. And that is having an effect on advisers under the SEC's jurisdiction," says Campbell, who was also an assistant secretary of labor for employee benefits and former head of the Employee Benefits Security Administration during the George W. Bush administration. How the SECand Labor Department might coordinate is something of an open question. In his memo, Clayton outlined a number of areas of concern. For example, he asked about confusion among retail investors as to what standards of conduct actually apply to brokers and advisers. "To what extent has this reported confusion been addressed?" he asked. Michael Renetzky, a partner at law firm Locke Lord, says a significant issue to address would be how different standards of conduct apply to different client accounts. "This is a critical policy challenge created by the current DoL fiduciary rule, and there has already begun to be discussion by financial institutions of several proposed product and fee changes which appear to directly shift various costs from accounts subject to the rule to those not subject to the rule," Renetzky says. DOL-17-0281-K-000524 AO 836892 OSEC 000524 LONG ROAD AHEAD Industry trade groups that have vigorously opposed the Labor Department's rule and called for the SECto take the lead were quick to praise Clayton's moves and pledged to work with him. "SIFMA has long-supported the creation of a best interest standard for brokers who provide personalized investment advice, and we continue to believe that the SECis the appropriate regulator to do so," CEO Kenneth Bentsen said in a statement. IRI and FSIalso applauded Clayton 's decision. Some fiduciary advocates, however, expressed concerns that an SECstandard would be robust enough to protect investors properly. "Any work done by the SECshould not stymie or undercut the fiduciary rule that will be implemented by the Department of Labor," the Financial Planning Coalition, comprised of the CFP Board, the FPA and NAPFA, said in a statement. "Requiring financial professionals to work in the best interest of Americans and their finances is an essential and long overdue reform; many in the financial services industry have already acknowledged and implemented practices to comply with a standard fiduciary rule," the coalition added. Ron Rhoades, a longtime independent financial planner who's now a professor and director of the financial planning program at Western Kentucky University, says he is "cautiously optimistic" about the SECannouncement. "Many players in the securities industry have suggested a new 'best interests' 'new federal fiduciary standard' that is just suitability enhanced by casual disclosure. If the SECis to act in this area, it needs to adopt a bona fide fiduciary standard for all those who provide personalized investment advice, similar to the impartial conduct standards adopted by the [Labor Department]," Rhoades says. Even if the SECis serious about crafting a standard and moves toward doing so, experts caution that the gears of government typically grind slowly . "A rule can take years to come to fruition," says Tamar Frankel, professor of law at Boston University. The Labor Department's fiduciary rule, Frankel notes, was six years in the making . --Tim Tim Lineberger Department of Labor L__________ (~J1!l.J __________ _: DOL-17-0281-K-000525 AO 836892 OSEC 000525 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/3/2017 10:47:28 AM RA Acosta [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Mannix, Patrick M - OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Palmer, Wayne D - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Conway, Molly E OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicho las C. - SOL [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=da824alfa6d64alda373f567ae34ed06-Geale, Nich]; Smith, Gavin J - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Hazelton, Jennifer OSEC[/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Rogers, Jillian B - OSEC [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=03b9ff7682664 75f9 3c70c70f7aef9be-Rogers, Jii] Morning Clips 6/3 Morning News Clips: 6/3/17 Not Responsive ! i__ ·-·-·-·-·-·-·-·-·-·-·-· 6/2 ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Bloomberg ! ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Fiduciary Rule's Future Even More Uncertain as SEC Steps In Click Here Not Responsive DOL-17-0281-K-000526 AO 836892 OSEC 000526 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 2 Fiduciary Rule's Future Even More Uncertain as SECSte~s In Bloomberg Kristen Ricaurte Knebel 6/2 The Securities and Exchange Commission's renewed interest in the Labor Department's fiduciary rule may give some hope to the rule's opponents. SECChairman Jay Clayton in his first policy announcement said the SECwould seek comment on a range of issues related to the DOL's Obama-era rule that aimed to reduce the allegedly conflicted investment advice given to retirement savers. Opponents of the rule may be pleased, but this isn't the first time the head of the SEChas expressed interest in tackling the topic, Dana Muir, a professor at the University of Michigan's Ross School of Business, told Bloomberg BNA. Muir DOL-17-0281-K-000527 AO 836892 OSEC 000527 served on the DOL's ERISAAdvisory Council and previously worked at the Pension Benefit Guaranty Corporation. "The last three or four SECcommissioners have said they were interested in addressing the extent of the SEC'sfiduciary regulation on advisers and broker -dealers, but it hasn't happened to date," Muir said. It has usually come to pass that SECcommissioners are too divided to decide on a fiduciary rule, Muir said. There are typically five SECcommissioners who are appointed by the president. To ensure that the commission isn't partisan, no more than three of the five can be of the same political party. There are currently three commissioners. "SEC movement on the fiduciary front has been long-awaited. Spurred by the DOL's action and by new personnel at the SEC,the SEC,it now appears, may finally be poised to take this on," Andrew L. Oringer, a partner with Dechert LLP in New York and co-chair of the firm's ERISAand executive compensation group, told Bloomberg BNA in an email. This could be a first step in a rule that is "more principles-based and less Byzantine and complex than the DOL's rule," Oringer said. While the SEC's past history in this area makes its future actions unclear, the concern supporters of the fiduciary rule have with this announcement is that "opponents of the DOL rule will latch on to this invitation for input and say the SEC is about to go forward and we should pause the DOL rule and see how the SECproceeds," Stephen Hall, legal director of the advocacy group Better Markets, told Bloomberg BNA. The DOL delayed portions of the fiduciary rule until June 9. Other parts are delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency. DOL Taking Heat Since Labor Secretary Alexander Acosta announced in a May 23 Wall Street Journal op-ed that he won't be seeking a further delay of the rule's upcoming June 9 applicability date, opponents of the rule have expressed their displeasure with the decision. Two op-eds were published this week in the Wall Street Journal by Eugene Scalia and Sen. Johnny Isakson (R-Ga.). Scalia, an attorney with Gibson Dunn & Crutcher LLP, represented the Chamber of Commerce in its case against the DOL regarding the fiduciary rule. Isakson asked Acosta to rethink his decision, saying that allowing the rule to move forward will mean "the administration is abandoning its responsibility to protect the availability of retirement options for middle-class Americans." Opponents and supporters of the fiduciary rule met with the DOL the last week in May in a listening session. DOL officials attending included acting Solicitor of Labor Nicholas C. Geale. Acosta didn't attend the meetings. Not Responsive DOL-17-0281-K-000528 AO 836892 OSEC 000528 Not Responsive DOL-17-0281-K-000529 AO 836892 OSEC 000529 Not Responsive DOL-17-0281-K-000530 AO 836892 OSEC 000530 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/5/2017 9:38:28 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Smith, Gavin J - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Hazelton, Jennifer - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Palmer, Wayne D OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=da824a 1fa6d64a lda3 73f567 ae34ed06 -GeaIe, Ni ch] RE: Morning Clips 6/5 Not Responsive DOL-17-0281-K-000531 AO 836892 OSEC 000531 Not Responsive DOL-17-0281-K-000532 AO 836892 OSEC 000532 Not Responsive From: Lineberger, Timothy L - OSEC Sent: Monday, June 05, 2017 7:17 AM To: RA Acosta Cc: Smith, Gavin J - OSEC; Rogers, Jillian B - OSEC; Hazelton, Jennifer - OSEC; Palmer, Wayne D - OSEC; Mannix, Patrick M - OSEC; Gamble, Bennett B - OPA; Conway, Molly E - OSEC; Geale, Nicholas C. - SOL Subject: Morning Clips 6/5 Morning News Clips: 6/5/17 6/5 The Hill Week ahead: House vote on Dodd-Frank overhaul; Labor chief in hot seat over financial adviser rule Click Here 6/5 Washington Examiner Financial industry t argets Obama regulation as it goes into effect Click Here Not Responsive -·-·-·-·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·r·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-,-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 1 Week ahead : House vote on Dodd-Frank overhaul; Labor chief in hot seat over financial adviser ru le The Hill DOL-17-0281-K-000533 AO 836892 OSEC 000533 Lydia Wheeler 6/5 The House is expected to vote on a Republican-backed bill to roll back much of the 2010 Dodd -Frank Wall Street Reform Act when they return from recess in the coming week. House Majority Leader Kevin McCarthy (R-Calif.) announced in a statement Friday that a vote was coming on the Financial CHOICEAct. "This bill does a lot to grow the economy, but perhaps most importantly it revives the role community banks can play in getting small businesses and new ideas off the ground," he said. "Since its inception, Dodd -Frank has strangled community banks with red tape and needless compliance costs." The House Financial Services Committee voted last month to send the bill to the floor for a vote. The bill, championed by committee Chairman Jeb Hensarling (R-Texas), would reportedly allow banks to opt out of Dodd-Frank if they hold enough cash, limit federal stress tests of major banks to every two years, and remove the power through which the federal government can label a bank "too big to fail." The bill also makes changes to the Consumer Financial Protection Bureau, which Dodd-Frank created. The bill made it through committee with the unified backing of Republicans who have long fought to curtail the Wall Street reforms passed under former President Barack Obama. But Democrats have vowed to defend the law and it is likely dead in the Senate. Lawmakers in the upper chamber's banking committee are focused on smaller tweaks to the law. Elsewhere on Capitol Hill, Labor Secretary Alexander Acosta will testify on his department's fiscal 2018 budget request before the House Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies. But he can also plan on getting tough questions from Republicans at Wednesday's hearing on the controversial Obamaera rule for financial advisers. Acosta announced last week that he will implement the so-called "fiduciary" rule, which requires certain financial advisers to disclose potential conflicts of interest to clients, on June 9. Acosta said the Labor Department couldn't find a legal basis to delay the controversial rule beyond the end date of a review President Trump ordered earlier this year. Though the rule will be implemented, Acosta said the agency is exploring potential changes. The announcement riled the U.S. Chamber of Commerce, which has been an outspoken critic since the rule was first proposed. Critics say the rule will make it harder for non-wealthy Americans to get access to financial advice. The Chamber claims the rule will cause 7 million people to lose access to investment advice. But supporters insist it's an important safeguard to ensure the public is getting the best advice . Also in the coming week, on Tuesday, Education Secretary Betsy DeVos is expected to testify before the Senate Labor, Health and Human Services, Education and Related Agencies Subcommittee on the Education Department's budget request. DeVos will be on the hot seat over Trump's budget, which calls for a $9.2 billion in cuts to education funding, The Washington Post reported. On Wednesday, the Energy and Natural Resources Subcommittee on National Parks will hold a hearing to look at ways DOL-17-0281-K-000534 AO 836892 OSEC 000534 to improve the National Park Service's workplace environment. On Thursday, the House Agriculture Subcommittee on Nutrition is holding a hearing to discuss modernizing the Supplemental Nutritional Assistance Program otherwise known as food stamps. Article 2 Financial industry targets Obama regulation as it goes into effect Washington Examiner Joseph Lawler 6/5 With a major Obama rule that will reshape the financial planning sector set to start going into effect next week, the industry is plotting its options for lightening its burden. To ease the impact of the Department of Labor fiduciary rule, which will require financial advisers to act in their clients' best interests, the Chamber of Commerce and other big industry groups hope to enlist Congress in pressuring the Trump Labor Department to revise the rule and for the more business-friendly Securities and Exchange Commission to write its own rule on the topic. "This may end up being a three-legged stool," said David Hirschmann, head of the U.S. Chamber of Commerce's Center for Capital Markets Competitiveness, referring to the prospect of action by Congress, the SECand the Labor Department. The financial industry lobbied hard over the past year and a half to stop the Obama administration from implementing the fiduciary rule, as it is known. Teaming with congressional liberals, Obama pushed the rule as part of his fourthquarter, pen-and-phone regulatory agenda. He argued that the rule was necessary to prevent some advisers and brokers from bilking savers with tax-privileged accounts, such as IRAs. Conflicts of interest in the industry, with brokers steering clients into inappropriate high -fee investment products in return for kickbacks, cost savers $17 billion annually, the Obama White House calculated. Industry groups, however, argued that the rule would make it unprofitable to maintain clients who are small savers or small businesses, resulting in many people losing access to investment advice. President Trump gave them hope in January, when he issued an executive order requiring the Labor Department to review the rule before it was supposed to take effect, which prompted a brief delay from the agency. Although that was seen as the possible prelude to a much longer delay and possible walking back of the rule, newly installed Labor Secretary Alexander Acosta announced in a late May Wall Street Journal op-ed that part of the rule would be enacted on June 9. Administrative law prevented him from further delaying the rule, he explained. Yet his agency is still reviewing comments it solicited during the brief delay and is expected soon to solicit more comments from businesses and advocates on both sides of the issue. Some Republicans objected to the Trump Labor Department's letting the rule go through at all. Rep. Jeb Hensarling, the chairman of the House Financial Services Committee, suggested that Obama holdovers in the agency subverted the administration's will. In the meantime, industry groups aim to keep the pressure on Congress and the agencies by highlighting people who will be disadvantaged by the rule, even if outright blocking it is no longer a possibility. "Our goal now is to work to mitigate that harm and to work with the regulator both at the SECand at the Department of Labor," said Jill Hoffman, vice president of Government Affairs for Investment Management at the Financial Services Roundtable. Some members of her trade group are still trying to calculate the effects of the new regulation and what they can and cannot live with, she said. At issue is the threat of class-action lawsuits against advisers and brokers. While companies can usually conform to and DOL-17-0281-K-000535 AO 836892 OSEC 000535 plan around regulations, Hirschmann said, "that's such a jackpot justice arrangement that it simply makes it hard to understand what your costs are going to be, who you can serve." In a 20-page report released last week, the Chamber of Commerce listed a range of problems that the fiduciary rule would create or has already generated for savers, according to industry sources who filed comments with the Labor Department. Up to 11 million people with IRAs through brokers could lose their brokers, according to the Securities Industry and Financial Markets Association. One survey found that nearly three-quarters of financial advisers plan to drop some low-balance clients. Anecdotally, many firms have begun preparing for the rule by moving away from commissions and toward a flat fee for investment advice or by limiting human advice provided to small savers in favor of cheaper robo-advisers. From the perspective of advisers, that is the problem. The harm is the "rule's bias against commission sales," said Howard Bard, vice president for taxes and retirement security for the American Council of Life Insurers. In fact, a shift away from commissions was part of the Obama administration's design, and the changes that advisers, brokers and insurers are already making to comply with the rule represent a partial victory for industry critics. Obama Labor Secretary Thomas Perez touted robo-advisers such as Wealthfront as a model of low -cost fiduciary advice. Yet those gains could be lost if the Labor Department's rule were to be rolled back, said Marcus Stanley, a policy expert with the left -leaning group Americans for Financial Reform. "There's money to be made by steering people into products that are the wrong products for them," he said, meaning that some brokers would return to bilking clients in the absence of enforcement. As for legislative options, there is one set to hit the House floor this week, in the form of the Financial Choice Act, a sweeping revision of post-crisis banking rules offered by Hensarling that also would outright repeal the fiduciary rule. That legislative package, though, is thought to have poor prospects in the Senate. Congressional action is more likely to take the form of leaning on the agencies rather than legislative changes. To that end, fiduciary rule proponents fear the influence of the SECunder the direction of new Trump Chairman Jay Clayton, a former Wall Street lawyer. In years past, Stanley noted, the SEChas declined to write a fiduciary rule and has discussed only relatively watered-down proposals, such as more stringent disclosure requirements. Republicans favor the SEC,however, on the grounds that it has more relevant experience with investor-client relations. Last year, House Republicans advanced legislation that would prevent the Labor Department from writing a rule until the SECweighed in on the topic. Liberals criticized the measure as effectively blocking a rule, because action from the SECwould never happen or wouldn't set an effective requirement that advisers act in their clients' best interests. Not Responsive DOL-17-0281-K-000536 AO 836892 OSEC 000536 Not Responsive DOL-17-0281-K-000537 AO 836892 OSEC 000537 Not Responsive DOL-17-0281-K-000538 AO 836892 OSEC 000538 Not Responsive DOL-17-0281-K-000539 AO 836892 OSEC 000539 Not Responsive DOL-17-0281-K-000540 AO 836892 OSEC 000540 Not Responsive DOL-17-0281-K-000541 AO 836892 OSEC 000541 Not Responsive DOL-17-0281-K-000542 AO 836892 OSEC 000542 Not Responsive DOL-17-0281-K-000543 AO 836892 OSEC 000543 Not Responsive DOL-17-0281-K-000544 AO 836892 OSEC 000544 Not Responsive DOL-17-0281-K-000545 AO 836892 OSEC 000545 Not Responsive DOL-17-0281-K-000546 AO 836892 OSEC 000546 Not Responsive DOL-17-0281-K-000547 AO 836892 OSEC 00054 7 Not Responsive DOL-17-0281-K-000548 AO 836892 OSEC 000548 Not Responsive DOL-17-0281-K-000549 AO 836892 OSEC 000549 Not Responsive DOL-17-0281-K-000550 AO 836892 OSEC 000550 Message Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/5/2017 5:41:13 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Smith, Gavin J - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Hazelton, Jennifer - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Palmer, Wayne D OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=da824a 1fa6d64a lda3 73f567 ae34ed06 -GeaIe, Ni ch] Evening Clips 6/5 Flag: Flag for follow up From: Sent: To: CC: Evening News Clips: 6/5/17 Not Responsive ·-· ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-· 6/5 Financial Advisor IQ Cost of "Conflicted" Advice Varies by State Click Here 6/5 Investor's Business Daily SECSteps Toward Possible Fiduciary Rule For Financial Advisors Click Here Not Responsive L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·l DOL-17-0281-K-000551 AO 836892 OSEC 000551 Not Responsive DOL-17-0281-K-000552 AO 836892 OSEC 000552 Not Responsive DOL-17-0281-K-000553 AO 836892 OSEC 000553 Not Responsive DOL-17-0281-K-000554 AO 836892 OSEC 000554 Not Responsive DOL-17-0281-K-000555 AO 836892 OSEC 000555 Not Responsive DOL-17-0281-K-000556 AO 836892 OSEC 000556 Not Responsive DOL-17-0281-K-000557 AO 836892 OSEC 000557 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 6 Cost of "Conflicted" Advice Varies b~ State Financial Advisor IQ Alex Padalka 6/5 Proponents of the Department of Labor's fiduciary rule claim American retirement savers lose billions of dollars annually on "conflicted" advice. But the burden is apparently split unevenly across different states, according to a recent report from the Economic Policy Institute. Moreover, every week the DOL's rule is delayed costs investors hundreds of millions of dollars, the EPI insists. The DOL's fiduciary rule, which goes into partial effect June 9 following a 60-day delay, purports to require retirement advisors to put clients' interests first. Without such a requirement, conflicted advice costs U.S. retirement savers $17 billion, the Obama-era White House Council of Economic Advisers concluded in 2015. But this varies by state, according to the EPI, which looked at what it calls "underperformance" of individual retirement accounts receiving conflicted advice caused by high fees or trading costs, bad market timing and increased risk exposure without additional returns. Retirement investors in Wyoming, for example, supposedly lose $24.2 million a year because of retirement brokers the EPI says aren't acting in the best interests of their clients, according to the nonprofit, nonpartisan think tank. California investors, meanwhile, supposedly lose close to $1.9 billion a year, while Texas retirement savers apparently lose a little over $1 billion per year and New York investors $945.2 million per year, according to the EPI, which bases the state breakdown on the 2008 Survey of Income and Program Participation data from the U.S. Census Bureau. The 60-day delay instituted by the DOL following a memorandum from President Donald Trump has already cost DOL-17-0281-K-000558 AO 836892 OSEC 000558 retirement savers $3.7 billion over the next 30 years, claims the EPI,which arrives at the figure by adapting numbers from the White House Council of Economic Advisors. Meanwhile, the DOL is weighing further delays ahead of the full implementation date scheduled for January 1 next year, the EPI writes. Alexander Acosta, the Labor Department's new chief, has made it clear the agency will continue reviewing the rule, which also faces several court challenges from industry groups. And each week the rule is delayed costs retirement savers $431 million over the next 30 years, according to the think tank. Article 7 SECSteps Toward Possible Fiduciary Rule For Financial Advisors Investor's Business Daily Paul Katzeff 6/5 In a move welcomed by at least one key opponent of the Department of Labor's fiduciary duty rule - parts of which are slated to take effect June 9 - the Securities and Exchange Commission has issued an informal invitation for public comment on a possible fiduciary rule that the SECcould create. The invitation was issued in the form of a statement from SECChairman Jay Clayton, which indicated that the agency had created a web form and email box for public comment. The Financial Services Institute, an advocacy group for financial advisors that has criticized the DOL rule, issued a release hailing the SECstep. It read: "(We) look forward to working with Chairman Clayton and the SECto create a standard that ensures Main Street investors receive advice that is in their best interest while preserving their access to affordable, objective financial advice and products. We strongly encourage Chairman Clayton and his team at the SECto coordinate with the Department of Labor to ensure the achievement of a true uniform fiduciary standard for the industry." Barbara Roper, director of investor protection for the Consumer Federation of America, says the SEChas a recent history of only paying "lip service" to investor protection with regard to a fiduciary duty. Rather than looking for ways to penalize conflicts of interest by financial advisors and brokers - which the DOL rule would do - the SECin the past has focused on requiring advisors and brokers to disclose conflicts. That disclosure would absolve brokers and advisors of responsibility for conflicts of interest, she says. "There's never been a single study that shows that disclosure effectively protects investors from the harmful impact of conflicts of interest," she said. That supposed lack of deterrence is why some factions in the financial services industry back an SECfiduciary rule over the DOL's, she says. "The groups that have opposed the DOL rule have made no secret of their desire to get a weaker disclosure-based rule from the SEC," she said. In addition, any SECrule would not have jurisdiction over parts of the industry that do no sell securities, such as insurers who sell fixed index annuities. "DOL has jurisidction under ERISAover retirement plans and its rules cover securities and nonsecurities alike," Roper said, referring to the Employee Retirement Income Security Act of 1974. The DOL rule requires financial advisors to act in the best interests of clients with regard to retirement accounts. The rule - also known as the anti-conflict-of-interest rule - will require brokers and advisors to recommend investments that are in the best interests of clients, not merely suitable for them, when they give retirement account advice. Full implementation of the DOL remains slated for Jan. 1, 2018. In the meantime, the DOL is seeking additional public input on the regulation, as directed by President Trump. That review could lead to the DOL rule's revision or termination. The SECwas authorized by the Dodd-Frank financial reform law to create a fiduciary rule for retail investment advice. In the SEC'sinvitation for public comment, Clayton said he is responding to DOL Secretary Alexander Acosta's recent DOL-17-0281-K-000559 AO 836892 OSEC 000559 comment that he wants to the DOL and SECto collaborate on investment advice regulation. Clayton wrote, "I welcome the Department of Labor's invitation to engage constructively as the Commission moves forward with its examination of the standards of conduct applicable to investment advisors and broker -dealers, and related matters. I believe clarity and consistency - and, in areas overseen by more than one regulatory body, coordination - are key elements of effective oversight and regulation." Not Responsive DOL-17-0281-K-000560 AO 836892 OSEC 000560 Not Responsive DOL-17-0281-K-000561 AO 836892 OSEC 000561 Not Responsive DOL-17-0281-K-000562 AO 836892 OSEC 000562 Not Responsive DOL-17-0281-K-000563 AO 836892 OSEC 000563 Not Responsive DOL-17-0281-K-000564 AO 836892 OSEC 000564 Not Responsive DOL-17-0281-K-000565 AO 836892 OSEC 000565 Not Responsive DOL-17-0281-K-000566 AO 836892 OSEC 000566 Not Responsive DOL-17-0281-K-000567 AO 836892 OSEC 000567 Not Responsive DOL-17-0281-K-000568 AO 836892 OSEC 000568 Not Responsive DOL-17-0281-K-000569 AO 836892 OSEC 000569 Not Responsive DOL-17-0281-K-000570 AO 836892 OSEC 000570 Not Responsive DOL-17-0281-K-000571 AO 836892 OSEC 000571 Not Responsive DOL-17-0281-K-000572 AO 836892 OSEC 000572 Not Responsive DOL-17-0281-K-000573 AO 836892 OSEC 000573 Not Responsive DOL-17-0281-K-000574 AO 836892 OSEC 00057 4 Not Responsive DOL-17-0281-K-000575 AO 836892 OSEC 000575 Not Responsive DOL-17-0281-K-000576 AO 836892 OSEC 000576 Message From : Sent: To: Subject: Hazelton, Jenni f er - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8230E055ED214EBEBA3584513464F3B1-HAZELTON, J] 6/6/2017 8:08:32 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=15dc286768d945dc9fcda837095195 fd-RA Acosta] Re: Can u pis send social media plan for t oday . Not Responsive ·-·-·-·-·-·-·-·-·-·-·-----·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· • 3:30pm: Congressional Fiduciary Meeting (Just listing this, not sure ifwe actually want to include this) Not Responsive r-········ ; ; ; ; ; ; ; ; ; ; L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-i DOL-17-0281-K-000577 AO 836892 OSEC 000577 Message From : Sent: To: Subject: Hazelton, Jenni f er - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8230E055ED214EBEBA3584513464F3B1-HAZELTON, J] 6/6/2017 8:11:14 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=15dc286768d945dc9fcda837095195 fd-RA Acosta] Re: Can u pis send social media plan for t oday . Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·r·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-.:;,o-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· • 3:30pm: Congressional Fiduciary Meeting (Just listing this, not sure ifwe actually want to include this) Not Responsive DOL-17-0281-K-000578 AO 836892 OSEC 000578 Message From : Sent: To: Subject: Hazelton, Jenni f er - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8230E055ED214EBEBA3584513464F3B1-HAZELTON, J] 6/6/2017 8:20:45 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=15dc286768d945dc9fcda837095195 fd-RA Acosta] Re: Can u pis send social media plan for t oday . Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·=i:-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-O't.:.7·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· • 3:30pm: Congressional Fiduciary Meeting (Just listing this, not sure ifwe actually want to include this) Not Responsive DOL-17-0281-K-000579 AO 836892 OSEC 000579 Message From : Sent: To: Subject: RA Acosta [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=15DC286768D945DC9FCDA837095195FD-RA ACOSTA] 6/6/2017 8:37:17 AM Hazelton, Jenni f er - OSEC [/o=Exchangelab s/ou=Exchange Administ rat ive Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Haze lto n, J] Re: Can u pis send social media plan for t oday . Not Responsive ··-·-·-·-·-·-·-·-·-·-~---·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--=---·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- • 3:30pm: Congressional Fiduciary Meeting (Just listing this, not sure ifwe actually want to include this) Not Responsive DOL-17-0281-K-000580 AO 836892 OSEC 000580 Message From: Sent: To: Subject: Hazelton, Jennifer - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8230E055ED214EBEBA3584513464F3B1-HAZELTON, J] 6/6/2017 8:38:24 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=15dc286768d945dc9fcda837095195fd-RA Acosta] Re: Can u pis send social media plan for t oday . Not Responsive • 3:30pm: Congressional Fiduciary Meeting (Just listing this, not sure ifwe actually want to include this) -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Not Responsive DOL-17-0281-K-000581 AO 836892 OSEC 000581 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/6/2017 6:15:52 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J] Evening Clips 6/6 Evening News Clips: 6/6/17 --·---~----·-·-·-·-·-·--·-·--·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-···-·-·-·-·-·-·-···-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-···--·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·- ·-·-·---·~----·-·-·-·-·-·-·-·-·-·-· ·- Not Responsive DOL-17-0281-K-000582 AO 836892 OSEC 000582 Not Responsive 6/6 Washington Post A new rule on retirement savings advice is in your best interest Click Here Not Responsive DOL-17-0281-K-000583 AO 836892 OSEC 000583 Not Responsive DOL-17-0281-K-000584 AO 836892 OSEC 000584 Not Responsive DOL-17-0281-K-000585 AO 836892 OSEC 000585 Not Responsive DOL-17-0281-K-000586 AO 836892 OSEC 000586 Not Responsive DOL-17-0281-K-000587 AO 836892 OSEC 000587 Not Responsive DOL-17-0281-K-000588 AO 836892 OSEC 000588 Not Responsive DOL-17-0281-K-000589 AO 836892 OSEC 000589 Not Responsive DOL-17-0281-K-000590 AO 836892 OSEC 000590 Not Responsive DOL-17-0281-K-000591 AO 836892 OSEC 000591 Not Responsive DOL-17-0281-K-000592 AO 836892 OSEC 000592 Not Responsive DOL-17-0281-K-000593 AO 836892 OSEC 000593 Not Responsive DOL-17-0281-K-000594 AO 836892 OSEC 000594 Not Responsive DOL-17-0281-K-000595 AO 836892 OSEC 000595 Not Responsive DOL-17-0281-K-000596 AO 836892 OSEC 000596 Not Responsive DOL-17-0281-K-000597 AO 836892 OSEC 000597 Not Responsive DOL-17-0281-K-000598 AO 836892 OSEC 000598 Not Responsive DOL-17-0281-K-000599 AO 836892 OSEC 000599 Not Responsive DOL-17-0281-K-000600 AO 836892 OSEC 000600 Not Responsive DOL-17-0281-K-000601 AO 836892 OSEC 000601 Not Responsive DOL-17-0281-K-000602 AO 836892 OSEC 000602 Not Responsive DOL-17-0281-K-000603 AO 836892 OSEC 000603 Not Responsive DOL-17-0281-K-000604 AO 836892 OSEC 000604 Not Responsive DOL-17-0281-K-000605 AO 836892 OSEC 000605 Not Responsive DOL-17-0281-K-000606 AO 836892 OSEC 000606 Not Responsive DOL-17-0281-K-000607 AO 836892 OSEC 000607 Not Responsive DOL-17-0281-K-000608 AO 836892 OSEC 000608 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-- Article 26 A new ru le on ret irement savings advice is in your best interest Washington Post Michelle Singletary 6/6 Investors are about to get some major help in determining which financial advisers are working in their best interest. After a long battle, which still might not be over, retirement savers will get some common-sense protection that should bring to light conflicts of interest that could cost them dearly. Here's some background on the new fiduciary rule that goes into effect June 9. The Labor Department, under the Obama administration, proposed that investment professionals, when giving advice about retirement plans, such as a 401(k), be required to put their clients' interests first. I bet you didn't know that wasn't already the prevailing standard. An investment adviser who has a "fiduciary duty" will have to act in the best interests of his or her clients. Advisers who DOL-17-0281-K-000609 AO 836892 OSEC 000609 are not "fiduciaries" don't have to meet this standard. Rather, they just have to make sure their advice is "suitable" for their client. Let me show you how the suitability standard might have played out before the new rule. You were close to retirement and you didn't know what to do with the money in your 401(k), which had low fees and terrific investment options. Your investment adviser, who was not a fiduciary, suggested that you roll over all your savings into an account managed by his firm - a transaction that yielded the adviser a huge commission and ultimately cost you in higher fees. Maybe you were told about the adviser's bonus, maybe not, but it certainly was not made clear to you that your adviser received a fat incentive to get you to roll over your retirement funds. This type of conflicted advice has cost investors $17 billion annually, according to the White House Council of Economic Advisers. "The fiduciary rule is long overdue," said Carolyn Mcclanahan, founder of the fee-only Life Planning Partners based in Jacksonville, Florida. "Consumers should have the confidence that their adviser is acting in their best interest, not just assuming this is the case. " Many financial companies opposed the rule, and in early February, President Trump issued a memorandum ordering the Labor Department to re-examine the rule. The rule was delayed but not reversed. By the way, it does not apply to nonretirement accounts. In a recent op-ed for The Wall Street Journal, Labor Secretary Alexander Acosta wrote: "Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule." What malarkey. Some advisers were taking advantage of folks. So now, here's what investors should expect, according to Barbara Roper, director of investor protection for the Consumer Federation of America. Fewer rollover recommendations. "Because advisers will only be permitted to recommend a rollover where that is in the customer's best interest, they will either have to refrain from recommending a rollover where the workplace plan is the better option, or sweeten the deal in terms of the investments they roll investors into." You may be encouraged to move to a fee-only account. "Though most brokers and insurers have decided to continue to offer commission-based retirement accounts," Roper explained, "some firms have decided the easiest way to reduce conflicts and comply with the rule is to move retirement money to fee accounts." Under a fee-based account, clients might pay an hourly rate, a flat fee or be charged a fee based on a percentage of assets being managed, Roper added. Some firms may drop smaller accounts. "We don't know how many will actually follow through on this threat, but it is a possibility," Roper said. "If this happens, investors need to know that there are firms that are available who will serve even the smallest accounts under a fiduciary standard. It's a nuisance to have to move, but do you really want your money with a firm that will only 'advise' you if they can continue to profit unfairly at your expense?" There is much to learn about the rule, and Roper has put together an explainer for investors who had been working with non -fiduciary advisers. You can find it at http:/ /ow.ly/kNpq30cnb0p. Certainly there may be changes to how you receive and pay for retirement investment advice. But keep in mind that they are, by and large, to reduce conflicts of interest. If you have more questions, join me for a live discussion at noon Eastern time on June 15 at washingtonpost.com/discussions. Roper will be my guest. DOL-17-0281-K-000610 AO 836892 OSEC 000610 IThere's a new rule in town, and it's in your best interest to now ask your adviser if he or she is a fiduciary. --Tim Tim Lineberger Department of Labor L__________ (~J1!l.J __________ _: DOL-17-0281-K-000611 AO 836892 OSEC 000611 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/7/2017 7:27:20 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J] Morning Clips 6/7 Morning News Clips: 6/7/17 Not Responsive L--·-·-· ·-·-·-·-·-·-·-·-·-·-·-· 6/6 ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- The Hill ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Trump's labor chief has a chance to set the fiduciary rule straight Click Here Not Responsive L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-j DOL-17-0281-K-000612 AO 836892 OSEC 000612 Not Responsive DOL-17-0281-K-000613 AO 836892 OSEC 000613 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 3 Trum~•s labor chief has a chance to set the fiduciary rule straight The Hill Paul Atkins 6/6 This week, the U.S. Department of Labor's highly controversial fiduciary rule - crafted during the Obama administration - is slated to go into effect. The regulation threatens to reduce retirement investment options for lower-income households, suck millions of dollars from the economy in compliance costs, create needless confusion, and spark wasteful litigation over poorly drafted text. Fortunately, it is not too late for Labor Secretary Alexander Acosta to take decisive corrective action in light of recently changed circumstances to put the entire flawed rule on hold, but time is running out. This precarious situation could have been entirely avoided by the Labor Department chief, who chose the curious medium of a recent misleading Wall Street Journal op-ed to announce his decision not to delay the regulation's June 9 effective date, which he erroneously justified out of "respect for the rule of law." DOL-17-0281-K-000614 AO 836892 OSEC 000614 Understanding why his analysis and conclusion are wrong - as well as the fiduciary rule's legally dubious origins - is critical to avert the rule's looming damage. Indeed, there is now an excellent reason to take swift action: last week, U.S. Securities and Exchange Commission Chairman Jay Clayton announced that the SECwill consider modifying its own fiduciary standards for brokers providing investment advice to retail investors. Long overdue cooperation between the DOL and SECin this effort can stop the financial bleeding that the Obama-era fiduciary rule will soon cause to lower-income retirees. The SEC,which has primary authority in matters regarding brokers and investment advisers, was uncharacteristically absent in the rule's formation under the previous administration due to DOL intransigence and likely political pressure from the Obama White House. Moving forward, Secretary Acosta must take this history into account and reassess his incorrect assertion that the SECmerely punted when the fiduciary rule was first being rolled out. As DOL emails profiled in a 2016 U.S. Senate report show, DOL Obama appointees actively undermined SECparticipation in the rule's design . They instead turned to Obama White House officials for data to skew the rule's regulatory impact analysis (RIA) in favor of a pre-desired outcome. Public outcry widely exposed the RIA's glaring errors of understated costs and overstated benefits, which the politicized DOL ignored last year. My colleague, former SECchief economist Craig Lewis, debunked the DOL's fundamental claim that its rule will save investors $17 billion per year. Given this Machiavellian history, it is unsurprising that the rule is currently being challenged in court for violating the Administrative Procedures Act. Indeed, the RIA's errors, and the documented political interference that drove its false claims, hardly support Secretary Acosta's conclusion in his op-ed that there is "no principled legal basis" to postpone effectiveness of the rule. In fact, there are pending lawsuits, which give Secretary Acosta a clear legal path to delay the rule's implementation under Section 705 of the Administrative Procedures Act, which expressly allows agencies to postpone effective dates of regulations when they are under judicial review. It is unclear why Secretary Acosta did not follow this appropriate legal path. His recent op-ed also failed to acknowledge that DOL staff actively undermined one of President Trump's first executive actions, a Feb. 3 memorandum that directed the DOL to "prepare an updated economic and legal analysis concerning [the rule's] likely impact." Instead of implementing the letter and spirit of the President's directive, and prior to Secretary Acosta's confirmation, holdover DOL staff refused to start an updated economic analysis and to put the entire rule on hold. Fortunately, the SEC'saction requesting comment on its fiduciary standards for brokers offers Secretary Acosta and the DOL a second chance to delay this pending rule . Not only does the potential for future SECaction necessitate coordination between the two agencies in order to avoid unnecessary costs from conflicting standards of care, but also it could fundamentally alter the purported benefits set forth in the rule's regulatory impact analysis. Secretary Acosta's decision to cooperate with the SECin this matter moving forward is the right one, and he is lucky to have another opportunity to help American savers and to ensure regulators follow the law. He now must learn from his mistake, and delay this rulemaking until the DOL can prepare an updated economic and legal analysis of the fiduciary rule developed in full cooperation with SECstaff. It would be wholly illogical to implement a rule while, as the presidential memorandum mandated, the DOL studies potential harm to investors. Like doctors, the DOL should first do no harm. Paul S. Atkins served as a Republican member of the U.S. Securities and Exchange Commission from 2002 to 2008 under President George W. Bush. He is now chief executive officer of Patomak Global Partners, a financial services consulting firm. Not Responsive DOL-17-0281-K-000615 AO 836892 OSEC 000615 Not Responsive DOL-17-0281-K-000616 AO 836892 OSEC 000616 Message From: Sent: To: Subject: Attachments: Burt Squires - Tech MIS [i (b)(G) : 6/7/2017 8:26:29 AM ' 'Bu rt Squires - Tech MIS' L___________________ J~J(~_L _________________ ___] DOL Daily Briefing (6-7-17) DOL Daily Briefing (6-7-17).pdf; DOL Daily Briefing (6-7-17).rnobi; DOL Daily Briefing (6-7-17).docx DOLDAILYBRIEFING U.S.Department of Labor ByTechMIS www.techmis.com MobileUserCopy TO: DATE: U.S.Department of Labor& Staff Wednesday, June7, 2017 6:00AM ET DOLNewsand Opinion Not Responsive Trump'slaborchief hasa chanceto setthefiduciaryrulestraight(TheHill) AcostaConfirmsNo FurtherDelayfor the FiduciaryRegulation(Paychex) Not Responsive DOL-17-0281-K-000617 AO 836892 OSEC 000617 Not Responsive DOL-17-0281-K-000618 AO 836892 OSEC 000618 Not Responsive DOL-17-0281-K-000619 AO 836892 OSEC 000619 Not Responsive DOL-17-0281-K-000620 AO 836892 OSEC 000620 Not Responsive Retirement A newruleon retirementsavingsadviceis in yourbestinterest(Washington Post) Investorprotectionrulewill fightfor Americans.We mustfightfor it. (TheHill) 4 waysretirementsavingis aboutto change(MSN) FiduciaryRuleGivesRiseto TwoNewShareClasses(Kiplinger) HowTop EYConsultants Seethe DOLFiduciaryRule(ThinkAdvisor) DOL-17-0281-K-000621 AO 836892 OSEC 000621 Thedataare in...andshowthatthe fiduciaryrulewill helpretirementsavers(EconomicPolicyInstitute) Not Responsive DOL-17-0281-K-000622 AO 836892 OSEC 000622 Not Responsive DOL-17-0281-K-000623 AO 836892 OSEC 000623 Not Responsive DOL-17-0281-K-000624 AO 836892 OSEC 000624 Not Responsive Trump'slaborchiefhasa chanceto setthe fiduciaryrulestraight(TheHill) (6/6/20176:00PM,PaulAtkins) Thisweek,the U.S.Departmentof Labor'shighlycontroversial fiduciaryrule- craftedduringthe Obamaadministration - is slatedto go intoeffect.Theregulationthreatensto reduceretirementinvestmentoptionsfor lower-income households, suck millionsof dollarsfromthe economyin compliancecosts,createneedlessconfusion,andsparkwastefullitigationoverpoorly draftedtext. Fortunately, it is nottoo latefor LaborSecretaryAlexanderAcostato takedecisivecorrectiveactionin lightof recentlychangedcircumstances to putthe entireflawedruleon hold,buttimeis runningout. Thisprecarioussituationcouldhavebeenentirelyavoidedby the LaborDepartment chief,whochosethe curiousmediumof a recentmisleadingWallStreetJournalop-edto announcehis decisionnotto delaythe regulation'sJune9 effectivedate,whichhe erroneously justifiedout of "respectfor the ruleof law."Understanding why his analysisandconclusionarewrong- as well as the fiduciaryrule'slegallydubiousorigins- is criticalto avertthe rule'sloomingdamage.Indeed,thereis nowan excellent reasonto takeswiftaction:lastweek,U.S.SecuritiesandExchangeCommission ChairmanJayClaytonannouncedthatthe SEC will considermodifyingits ownfiduciarystandardsfor brokersprovidinginvestmentadviceto retailinvestors. AcostaConfirmsNo FurtherDelayfor the FiduciaryRegulation(Paychex) (6/6/201711:00AM, StaffReport) On May22, 2017via on op-edin the WallStreetJournal,Secretaryof LaborAlexanderAcostaconfirmedtherewill not be a delay,beyondJune9, 2017,of the implementation of the finalregulationdefiningwho is a "fiduciary"underERISAas well as the applicability of relatedprohibitedtransactionexemptions. The Department of Laborhasalsoreleased15 newFAQsaddressing the transitionperiodbetweenJune9, 2017to January1, 2018.SecretaryAcostaalsostatedthatthe LaborDepartmenthas concludedthat it is necessaryto seekadditionalpublicinputon the entireFiduciaryRule. Alsoon May22,the EmployeeBenefitSecurityAdministration (EBSA)announcedin FieldAssistanceBulletinNo.2017-2that the LaborDepartment will not pursueclaimsagainstfiduciarieswho areworkingdiligentlyandin goodfaithto complywiththe fiduciarydutyruleandexemptions, or treatthosefiduciariesas beingin violationof the fiduciarydutyruleandexemptions,during the transitionperiodendingJanuary1, 2018.Theapproachbeingtakenby the DOLis oneof complianceassistanceratherthan enforcement. Barringany additionalrulingsor delays,January1, 2018is whenfull complianceis required. Not Responsive DOL-17-0281-K-000625 AO 836892 OSEC 000625 Not Responsive DOL-17-0281-K-000626 AO 836892 OSEC 000626 Not Responsive DOL-17-0281-K-000627 AO 836892 OSEC 000627 Not Responsive DOL-17-0281-K-000628 AO 836892 OSEC 000628 Not Responsive DOL-17-0281-K-000629 AO 836892 OSEC 000629 Not Responsive DOL-17-0281-K-000630 AO 836892 OSEC 000630 Not Responsive DOL-17-0281-K-000631 AO 836892 OSEC 000631 Not Responsive DOL-17-0281-K-000632 AO 836892 OSEC 000632 Not Responsive DOL-17-0281-K-000633 AO 836892 OSEC 000633 Not Responsive DOL-17-0281-K-000634 AO 836892 OSEC 000634 Not Responsive DOL-17-0281-K-000635 AO 836892 OSEC 000635 Not Responsive DOL-17-0281-K-000636 AO 836892 OSEC 000636 Not Responsive DOL-17-0281-K-000637 AO 836892 OSEC 000637 Not Responsive DOL-17-0281-K-000638 AO 836892 OSEC 000638 Not Responsive DOL-17-0281-K-000639 AO 836892 OSEC 000639 Not Responsive DOL-17-0281-K-000640 AO 836892 OSEC 000640 Not Responsive DOL-17-0281-K-000641 AO 836892 OSEC 000641 Not Responsive DOL-17-0281-K-000642 AO 836892 OSEC 000642 Not Responsive DOL-17-0281-K-000643 AO 836892 OSEC 000643 Not Responsive DOL-17-0281-K-000644 AO 836892 OSEC 000644 Not Responsive DOL-17-0281-K-000645 AO 836892 OSEC 000645 Not Responsive DOL-17-0281-K-000646 AO 836892 OSEC 000646 Not Responsive DOL-17-0281-K-000647 AO 836892 OSEC 00064 7 Not Responsive DOL-17-0281-K-000648 AO 836892 OSEC 000648 Not Responsive DOL-17-0281-K-000649 AO 836892 OSEC 000649 Not Responsive DOL-17-0281-K-000650 AO 836892 OSEC 000650 Not Responsive DOL-17-0281-K-000651 AO 836892 OSEC 000651 Not Responsive DOL-17-0281-K-000652 AO 836892 OSEC 000652 Not Responsive DOL-17-0281-K-000653 AO 836892 OSEC 000653 Not Responsive DOL-17-0281-K-000654 AO 836892 OSEC 000654 Not Responsive DOL-17-0281-K-000655 AO 836892 OSEC 000655 Not Responsive DOL-17-0281-K-000656 AO 836892 OSEC 000656 Not Responsive DOL-17-0281-K-000657 AO 836892 OSEC 000657 Not Responsive DOL-17-0281-K-000658 AO 836892 OSEC 000658 Not Responsive DOL-17-0281-K-000659 AO 836892 OSEC 000659 Not Responsive DOL-17-0281-K-000660 AO 836892 OSEC 000660 Not Responsive Retirement A newrule on retirementsavingsadviceis in yourbestinterest(WashingtonPost) (6/6/20175:45PM,MichelleSingletary) Investorsare aboutto getsomemajorhelpin determining whichfinancialadvisersareworkingin theirbestinterest.Aftera long battle,whichstill mightnot be over,retirementsaverswillget somecommon-sense protectionthat shouldbringto lightconflicts of interestthat couldcostthemdearly. TheLaborDepartment, underthe Obamaadministration, proposedthat investmentprofessionals, whengivingadviceabout retirementplans,suchas a 401(k),be requiredto puttheirclients'interestsfirst. I betyoudidn'tknowthatwasn'talreadythe prevailingstandard.An investmentadviserwhohasa "fiduciaryduty"will haveto act in the bestinterestsof his or herclients. Adviserswhoare not"fiduciaries" don'thaveto meetthis standard.Rather,theyjust haveto makesurethattheiradviceis "suitable"for theirclients. Investorprotectionrulewill fightfor Americans . We mustfight for it. (TheHill) (6/6/20171:00PM,MarnieLambert) Thefirsttimeyou heartheterm"fiduciaryrule,"it soundslikesomehopelesslycomplexandtechnicalthingthat onlya lawyeror a policygeekcouldlove.Whenyou aretoldthat it's a safeguardto ensurethatfinancialadvisorsputcustomers'interestsbefore theirown,it still maynotsoundlikesomethingthatyoushouldnecessarily be concernedabout.Butthetruthis thatthefiduciary ruleis all about"realpeople"- tensof thousandsof Americanretirementsaversandinvestorswho lost$17 billionlastyear becausethe fiduciaryrulewas notin effectandwhowill losebillionsmorein 2017if the ruleis reversedor killed. Whennewly-inaugurated PresidentTrumpissuedhis Feb.3 memorandum addressing the fiduciaryrule,it becameclearthat his administration wouldtry to overturnthe rule. Althoughthe Department of Labor(DOL)hasannouncedthatthe fiduciaryrulewill go intoeffectthis Friday,DOLmadeit clearthat it will still studythe ruleandcouldseekto overturnit. Meanwhile, Congresshas takenstepsto attackthe fiduciaryrulefromanotherangle.The FinancialCHOICEAct,whichis nowheadedfor a full votein the House,wouldstopthefiduciaryrulein its tracks,requiringthatthe SecuritiesandExchangeCommission (SEC)startfrom DOL-17-0281-K-000661 AO 836892 OSEC 000661 scratchon a ruleof its ownto governthe conductof financialadvisors.Lawmakersstillface a decision,andso it's moreimportant thaneveras we try to understandwhythe fiduciaryruleis worthsaving.Considerthe caseof Bill andSusan,a retirement-age couplefromthe Midwest.Susanis 69 and Bill is 71 andcontinuesto workas a facilitiesmanager.Bill andSusanwereintroduced to their broker,Bob,by fellowchurchmembers. 4 waysretirementsavingis aboutto change(MSN) (6/6/201710:52AM, BethPinsker) Leavingyourjob soonandrollingovera 401(k) intoan IRA?Thinkingaboutbuyingan annuity?Aboutto callyour money managerandallocatethisyear'sRothcontribution? All of thesetransactionsandmoremaybe differentnextweek,afternew guidancefromthe U.S.Departmentof Laboris implemented. Theso-called"fiduciaryrule,"whichstartson June9, was a political footballduringthe Obamaadministration andseemeddoomedafterPresidentDonaldTrumptookoffice.Butonceset in motion, the regulationwashardto unravel,saysJamieHopkins,RetirementIncomeProgramco-directorat the AmericanCollegeof FinancialServices. Startingnowandrollingout in a graduatedprocessthroughJan. 1, 2018,newruleswill governhow investmentprofessionals can doleout adviceinvolvinga slewof retirementfunds,includingIRAs,Roths,HealthSavingsAccountsandCoverdellEducation Accounts.So whatis a fiduciary?Someonewhoserecommendations for buyingor sellingallocationsare in the client'sbest interest.Plus,all compensation to the adviserhasto be disclosed.Someinvestorswill see littlechange.Therulesdo not impact 401(k) accounts,for instance.Alsounaffectedarethosewho alreadyhavea fiduciaryrelationshipwith theirfinancialadvisers, suchas thosewho arefee-onlyCertifiedFinancialPlanners. FiduciaryRuleGivesRiseto TwoNewShareClasses(Kiplinger} (6/6/20179:32PM,NellieS. Huang) Youmayhaveheardof A, B, C andotherclassesof mutualfundshares.Now,get readyfor T sharesand"clean"shares,the industry'sanswerto a newgovernmentrulethatrequiresbrokersto act in theirclients'bestinterests.Theso-calledfiduciaryrule, whichwas issuedby the Department of Laborandwasset to takeeffectin June,appliesto anyonegivinginvestmentadvice concerninga 401(k) or individualretirementaccount.If you manageyourownretirementaccount,you'reprobablybuyingno-load mutualfunds,so littleof this appliesto you. Butinvestorswhoworkwith brokershavetraditionallypurchaseda loadfund'sClass A sharesandcompensated the brokersby payingfront-endcommissions. Investorsin A sharesalsopaidannual12b-1feesto provideextra,ongoingcompensation to brokers. The DOLdecidedthatthe traditionalfee structureposesa potentialconflict,in partbecausethe chargesvarywidelywiththe type of fund.Forexample,the averageloadfor broker-soldstockfundsis 5.47%,whilethe averagefor broker-soldbondfundsis 3.75%.Thedifference,saysAronSzapiro,directorof policyresearchat Morningstar, mightinfluencea brokerto recommenda stockfundfor a clientwhena bondfundmightbe moreappropriate.ThenewClassT shares,manyof whichhaveyet to launch, levelthe playingfield by settingthe loadand 12b-1fee at a uniform2.5%and0.25%,respectively,acrossall fundsandfirms. SzapiroexpectsmostfundswithClassA sharesto issueT shares.ButT sharesmaybe "a transitional"solution,he says, becausethey'rea formof the old commission-based paystructure,whichis a businessmodelin flux. HowTop EYConsultantsSeethe DOLFiduciaryRule(ThinkAdvisor) (6/6/201712:00PM,GerryMurtagh& BenYahr) The U.S.Department of Labor'sfiduciaryrulewill becomeapplicablethis month,andit will havemajoreffectson financial servicesdeliveredto the retirementmarket.The DOLruleexpandsthe applicability of the existingfiduciarystandardfor recommending productsto retailindividualretirementaccountcustomers,whichmeansadvisorsmustalwaysact in the best interestof theircustomers,as definedby the DOLrule. As a result,distributorsare planningto changeproductsandbusinessprocessesto eliminateconflictsof interest,implementa best-interest salesprocessandefficientlyachievecompliance.Manydistributorsare actively"narrowingtheir productshelf," whichmeansfewerproductsfor advisorsto sell. Thedataare in...andshowthatthe fiduciaryrulewill helpretirementsavers(EconomicPolicyInstitute) (6/6/20172:58PM,MoniqueMorrissey) As the Trumpadministration considersweakeningthe long-awaited "fiduciaryrule",industry-backed groupscontinueto release transparently self-serving"research"purportingto showthatthe rule,whichprotectsretirementsaversagainstsalespitches DOL-17-0281-K-000662 AO 836892 OSEC 000662 disguisedas financialadvice,will do moreharmthangood.Mostrecently,the U.S.Chamberof Commercereleaseda report misleadingly entitled,The DataIs [sic]In: The FiduciaryRuleWill HarmSmallRetirementSavers.Thedataactuallyshownothing of the kind.As the ConsumerFederationof Americahas pointedout,evencomparinga partialestimateof the harmdoneto saversfromconflictedadvicewith an inflatedestimateof the costof implementing the ruleshowsthatthe rule'sbenefitsvastly outweighits costs. Thishasn'tpreventedthe Chamberandothersfromclaimingthatthe rulewill harminvestorsby restrictingaccessto retirement services,limitinginvestmentoptions,andincreasingfeespaidfor investmentadvice. Theseclaimsare basedon surveysof firms withan interestin weakeningor overturningthe rule,conductedby industryassociations andconservative groupswho are in manycasesideologically opposedto governmentregulation . As EPIVicePresidentRossEisenbreyrecentlytold the acting Solicitorof Labor,affectedindustriesinvariablypredictdireoutcomesfromregulationstheyopposesincethey arerarelycalledto accountwhentheirpredictionsproveunfounded. Not Responsive DOL-17-0281-K-000663 AO 836892 OSEC 000663 Not Responsive DOL-17-0281-K-000664 AO 836892 OSEC 000664 Not Responsive DOL-17-0281-K-000665 AO 836892 OSEC 000665 Not Responsive DOL-17-0281-K-000666 AO 836892 OSEC 000666 Not Responsive DOL-17-0281-K-000667 AO 836892 OSEC 000667 Not Responsive DOL-17-0281-K-000668 AO 836892 OSEC 000668 Not Responsive DOL-17-0281-K-000669 AO 836892 OSEC 000669 Not Responsive DOL-17-0281-K-000670 AO 836892 OSEC 000670 Not Responsive DOL-17-0281-K-000671 AO 836892 OSEC 000671 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/7/2017 9:12:05 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=70a78d6db84949b68c79e655111e0f84-Allende, Pe] RE: Evening Clips 6/7 2 more from WSJ below: Not Responsive DOL-17-0281-K-000672 AO 836892 OSEC 000672 Not Responsive DOL-17-0281-K-000673 AO 836892 OSEC 000673 Not Responsive DOL-17-0281-K-000674 AO 836892 OSEC 00067 4 -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 1ck Not Responsive From: Lineberger,Timothy L - OSEC Sent: Wednesday,June 07, 2017 7:44 PM To: RAAcosta Cc: Hazelton,Jennifer - OSEC;Smith, Gavin J - OSEC;Rogers,Jillian B - OSEC;Palmer,Wayne D - OSEC;Mannix, Patrick M - OSEC;Gamble, Bennett B - OPA;[·-·-·-·-·-·-·-·-·-·-·-{i:lj(.sf-·-·-·-·-·-·-·-·-·-·-i Conway, Molly E - OSEC;Wimer, Andrew P - OPA; Ray, PaulJ - OSEC;Allende, Pedro M - OSEC Subject: EveningClips 6/7 Evening News Clips: 6/7/17 Not Responsive DOL-17-0281-K-000675 AO 836892 OSEC 000675 Not Responsive - 6/7 Reuters U.S. Labor Department takes steps to reconsider fiduciary rule Click Here 6/7 Politico Pro DOL sends fiduciary rule RFI to 0MB Click -Here 6/7 Wall Street Journal Labor Secretary Says Final Review of Fiduciary Rule in Motion Click -Here -- 6/7 Investment News Labor Secretary Acosta: Concerns with DOL fiduciary rule 'not heard' during original rulemaking Click -Here -- 6/7 Pensions and Investment Fiduciary rule cannot be stopped, Labor secretary says Click -Here -- 6/7 The Hill Click -Here -- 6/7 The Daily Signal Labor chief says he can't snap his fingers and undo Obama rule Trump's Labor Secretary Is About to Violate the President's Agenda . Why He Should Delay This Obama-Era Rule. ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Click -Here -- ·-·-·-·-·-·-·-·-·- Not Responsive DOL-17-0281-K-000676 AO 836892 OSEC 000676 Not Responsive DOL-17-0281-K-000677 AO 836892 OSEC 000677 Not Responsive DOL-17-0281-K-000678 AO 836892 OSEC 000678 Not Responsive DOL-17-0281-K-000679 AO 836892 OSEC 000679 Not Responsive DOL-17-0281-K-000680 AO 836892 OSEC 000680 Not Responsive DOL-17-0281-K-000681 AO 836892 OSEC 000681 Not Responsive DOL-17-0281-K-000682 AO 836892 OSEC 000682 Not Responsive DOL-17-0281-K-000683 AO 836892 OSEC 000683 Not Responsive DOL-17-0281-K-000684 AO 836892 OSEC 000684 Not Responsive DOL-17-0281-K-000685 AO 836892 OSEC 000685 Not Responsive DOL-17-0281-K-000686 AO 836892 OSEC 000686 Not Responsive DOL-17-0281-K-000687 AO 836892 OSEC 000687 Not Responsive DOL-17-0281-K-000688 AO 836892 OSEC 000688 Not Responsive DOL-17-0281-K-000689 AO 836892 OSEC 000689 Not Responsive -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 17 U.S. Labor De~artment takes ste~s to reconsider fiduciary rule Reuters Sarah Lunch and Robert lafolla 6/7 The U.S. Labor Department this week took preliminary steps toward potentially recrafting the fiduciary rule, which requires brokers who offer retirement advice to act in their customers ' best interest . The White House's Office of Management and Budget website posted a notice by the Labor Department saying it plans to solicit information from the public and other interested parties about the rule. DOL-17-0281-K-000690 AO 836892 OSEC 000690 Such a step marks the very early part of a formal rulemaking process. However, it does not guarantee a new rule will ultimately be crafted. "We need that information. We need that data in order to decide how to proceed," Labor Secretary Alexander Acosta said on Wednesday, when lawmakers inquired about the rule during a routine congressional hearing on the Labor Department 's budget. The fiduciary rule has been the subject of fierce debate and contention since it was proposed during the Obama administration. It is championed by consumer advocates and retirement non-profit groups, but has been staunchly opposed by the financial services sector, which argues it will make retirement advice too costly and harm lower-income retirees in particular. Wall Street and other wealth managers have sought to kill it or scale it back, including by filing lawsuits against the department that have so far proven unsuccessful. Earlier this year, President Donald Trump ordered the department to study the rule and see if it should be scrapped or rewritten. The department temporarily halted implementation. June 9 without further delays. However, portions of the rule are now slated to go into effect on Acosta said at the hearing on Wednesday that multiple attorneys examined the rule and could not find a legal basis for postponing its June 9 implementation. He added that he is aware of some of the concerns about the rule, but the federal law governing rulemaking procedures requires the department to follow a proper process and weigh those concerns to see if changes are merited. "We need the data to substantiate those concerns because the decisions have to be based on the record, or else those decisions become prejudgment," he said. Article 18 DOL sends fiduciary rule RFIto OM B Politico Pro Marianne LeVine 6/7 The Labor Department sent a request for information on the fiduciary rule to the White House Office of Management and Budget Tuesday, according to the agency website. The request for information comes after Acosta said last month that he would not delay the fiduciary rule's applicability date, set for June 9. The rule requires that broker dealers consider only their client's best interest- and not commissions or fees- when providing retirement advice. Critics of the rule say that it will limit access to retirement advice. At a House Appropriations subcommittee hearing today, Acosta described the request for information as "the first step in the administration's review of [the] rule." "We need that data in order to proceed," he said. Article 19 Labor Secretary Says Final Review of Fiduciary Rule in Motion Wall Street Journal DOL-17-0281-K-000691 AO 836892 OSEC 000691 Lisa Beilfuss and Eric Morath 6/7 Labor Secretary Alexander Acosta said Wednesday that the first step has been taken in deciding the fate of a landmark retirement-savings rule that goes into partial effect this Friday. Mr. Acosta, at a congressional hearing on President Donald Trump's budget proposal, said the Office of Management and Budget put out a request for information Wednesday morning on the fiduciary rule . The OM B is the gatekeeper in the rule-making-and rule-changing-process. The 0MB didn't immediately ret urn requests for comment. "That is the first step," Mr. Acosta said. "We need that information and data in order to decide how to proceed." Mr . Acosta said in a Wall Street Journal opinion piece last month that the so-called fiduciary rule-which aims to eliminate conflicts in financial advice and ensure that brokers put the interests of retirement savers first-wouldn't be further delayed. The Labor Department had pushed back the regulation's April 10 implementation deadline by 60 days, to June 9, after Mr. Trump called for a re-evaluation of the rule with an eye toward revision or repeal. Mr. Acosta on Wednesday elaborated on the rationale behind his decision to let the heart of the rule-a standard of care required of stewards of retirement savings-kick in even as the review stretches on . best-interest "We looked very carefully whether we could postpone it," Mr. Acosta said. "When a rule is adopted the executive branch cannot just postpone implementation of that rule: You need a new rule to change the old rule ." "No one in government should be able to snap their fingers and undo laws," he added. "That's not how democracy works ." Letting the best-interest standard become effective this week doesn't preclude modifications or an outright repeal of the fiduciary rule, but it does effectively make the spirit of the regulation harder to reverse down the line, observers have said. This is because firms across the country have to communicate compliance changes to clients, including disclosures about how clients are charged and commitments to put customers' interests first . Article 20 Labor Secretary Acosta: Concerns w ith DOL fiduciary ru le 'not heard' during origina l rulemaking Investment News Greg lacurci 6/7 Secretary of Labor Alexander Acosta hinted Wednesday that the Obama administration didn't adequately consider "concerns" raised during the rulemaking process surrounding the Department of Labor's fiduciary rule . Mr. Acosta made the remark during congressional testimony, after Rep. Steve Womack (R-Arkansas) asked: "Is it not obvious that [the fiduciary rule] is going to limit [investors'] options? Does it have some far-reaching effects that would be counterproductive to particularly younger generations' savings opportunities?" The argument that the regulation will reduce access to investment options is common among critics of the regulation, which will raise investment-advice standards in retirement accounts once its phased implementation period begins June 9. "There are concerns. Those concerns were voiced in the original rulemaking process, and the prior administration made a decision that those concerns were outweighed by what the prior administration wanted to do," Mr. Acosta said in response . DOL-17-0281-K-000692 AO 836892 OSEC 000692 "Those concerns certainly surfaced the first time around, and unfortunately they were not heard. And that's what happens," Mr. Acosta added. The secretary made his comments during a hearing before the U.S. House of Representatives' Subcommittee on Labor, Health and Human Services, Education, and Related Agencies regarding the DOL's budget. The DOL under Mr. Acosta is currently conducting a review of the fiduciary rule, as directed earlier this year by the Trump administration. The DOL has sent a request for information to the Office of Management and Budget, which received the request on Tuesday and will issue it publicly after completing a review. The request for information will seek response from industry stakeholders and consumers about the fiduciary rule and how it's being implemented, and is "the first step in the administration's review of that rule," Mr. Acosta said. "We need that information and we need that data in order to decide how to proceed," he added. Micah Hauptman, financial services counsel at the Consumer Federation of America, believes Mr. Acosta is incorrect in saying the Obama administration's Labor Department didn't effectively consider the concerns of rule opponents during the rulemaking process. The previous DOL "carefully scrutinized" these arguments and "rightly determined they were meritless and self-serving," he said. "The industry opponents' sky-is-falling claims have become even less credible as firms have implemented the rule and made statements confirming that it will benefit investors," Mr. Hauptman said. Article 21 Fiduciary rule cannot be sto~~ed, Labor secretary says Pensions and Investments Hazel Bradford 6/7 The Department of Labor does not have the authority to undo the new fiduciary rule scheduled to take effect Friday, Labor Secretary Alexander Acosta told a House budget panel Wednesday. "We have looked at it very carefully, multiple attorneys have looked at it, and the conclusion is that there is no basis to postpone," Mr. Acosta said during a House Appropriations subcommittee hearing on the DOL's proposed fiscal year 2018 budget. "I have to be very careful because this is an ongoing litigation," he said. "If there were to be a change, that change would have to be based on information that is obtained through a record process. If that information supports it, then the administration could consider a new rule. That sounds cumbersome but it's about process. No one in government should be able to snap their fingers and undo something. That's how democracy works." Mr. Acosta said that the Administrative Procedure Act "prohibits me from prejudging the rule. We need the data to substantiate those concerns. Those concerns were voiced the first time around and unfortunately those were not heard." Article 22 Labor chief says he can't sna~ his fingers and undo Obama rule The Hill Lydia Wheeler 6/7 Labor Secretary Alexander Acosta pushed back Wednesday when asked why his department is implementing a financial DOL-17-0281-K-000693 AO 836892 OSEC 000693 adviser rule put in place by the last administration, telling lawmakers he can't snap his fingers and undo a regulation. Republicans on a House Appropriations subcommittee pressed Acosta on the Obama-era financial adviser rule, which he announced last week would take effect on June 9 after the department found no legal basis for a further delay. At a budget hearing Wednesday, Acosta told lawmakers he's still looking at the rule even though it will take effect Friday. He said the Office of Management and Budget has asked the public to comment on how the rule is being implemented and the impact it has. "That's the first step in this administration's review of the rule, but we need that information and we need that data in order to decide how to proceed," Acosta said. But Rep. Steve Womack (R-Ark.) wanted to know what Acosta meant when he said the department is looking at the rule. Acosta explained that Administrative Procedures Act, which requires a new rule to change an old rule, binds him from simply squashing it. To issue a new rule, he noted, would require going through the same lengthy process as the one used to write the old rule. "If there were to be a change, that change would have to be based on information obtained through a record process, the first step of which is a request for information," he said. Though the process seems cumbersome, Acosta said it's how democracy works. "And no one in government should be able to snap their fingers and undo laws or undo rules because that's not a respect for a fundamental democracy," he said. Critics of the rule, particularly in the business world, have warned the rule will impede Americans' ability to access financial advice. Womack asked about the impact the rule will have on younger generations that are just now beginning to save for retirement. Acosta explained that those concerns were voiced in the original rulemaking process, but the Obama administration decided to move forward anyway. "At this point the APA and administrative law prohibits me from prejudging a rule," he said. Article 23 Trump's Labor Secretary Is About to Violate the President's Agenda. Why He Should Delay This Obama-Era Rule. The Daily Signal Norbert Michel 6/7 A costly and burdensome rule issued by the Obama administration is set to go into effect Friday, barring action from the Department of Labor to delay it. Unfortunately, the new secretary of labor isn't acting. Instead, he is tacitly undermining the president's agenda on financial regulation. The rule at hand is the fiduciary rule. President Donald Trump issued an executive order in February specifically to rescind or revise this rule, which is designed to provide a single standard for anyone providing retirement advice. DOL-17-0281-K-000694 AO 836892 OSEC 000694 The president also signed an order making it the official policy of the new administration to "empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth." It made perfect sense for the president to pair these two orders together because President Barack Obama's fiduciary rule, which had not yet taken effect, is the polar opposite of empowering people to make their own financial decisions. It is paternalistic regulation at its worst. The fiduciary rule would impose a one-size-fits-all approach on a very diverse set of financial advisers. It is likely to lead to many unintended consequences, such as less investment advice for average Americans, higher compliance costs, wasteful litigation, and fewer investment options for low-income individuals. It represents everything that has been wrong with financial regulation for decades. There are too many federal regulators, and too many rules dictating what people can do. A far better approach would be to focus regulators on preventing fraud and providing rules so that people have the information necessary to make informed decisions. Conservatives have been making this case for years, so many were thrilled with the president's first two executive orders. Inexplicably, it now appears that Secretary of Labor Alex Acosta is about to leave the Obama rule in place. The spectacle of a Cabinet-level department essentially flouting the administration's stated policy is, to say the least, bizarre. The presidential memorandum on the fiduciary rule requires the labor secretary to "prepare an updated economic and legal analysis concerning [the rule's] likely impact." Exactly what happened is unclear, but it seems that the department staff refused to begin the analysis (even though the department did delay the implementation of the rule until June 9). Then, in an even stranger twist, Acosta proclaimed, in a Wall Street Journal op-ed, that his department has "found no principled legal basis to change the June 9 date while we seek public input." Aside from whether this decision violates the spirit of the presidential memo, it is simply incorrect to argue that there is no legal basis to further delay the rule. The rule is currently being challenged in court, and the Securities and Exchange Commission is seeking public comment on its own fiduciary standard for brokers. The lawsuits alone provide a clear legal avenue for delaying the rule under Section 705 of the Administrative Procedures Act. Section 705 states that "[W]hen an agency finds that justice so requires, it may postpone the effective date of action taken by it, pending judicial review." This regulation has the potential to pull millions of dollars out of the economy with no clear benefit, harming low- and middle-income Americans by taking away investment choices and increasing the costs of those that remain. Fortunately, the Trump administration's stated policy is to "empower Americans to make their own financial decisions," a sharp break from the way the Obama administration viewed people. Time is running out, but Trump's labor secretary still has a chance to fulfill the letter and spirit of the president's order. The choice is clear: The secretary should delay the rule until the department, working with the Securities and Exchange DOL-17-0281-K-000695 AO 836892 OSEC 000695 Commission, can complete a new economic and legal analysis. Not Responsive DOL-17-0281-K-000696 AO 836892 OSEC 000696 Not Responsive DOL-17-0281-K-000697 AO 836892 OSEC 000697 Not Responsive DOL-17-0281-K-000698 AO 836892 OSEC 000698 Not Responsive DOL-17-0281-K-000699 AO 836892 OSEC 000699 Not Responsive DOL-17-0281-K-000700 AO 836892 OSEC 000700 Not Responsive DOL-17-0281-K-000701 AO 836892 OSEC 000701 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/8/2017 5:48:25 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=70a78d6db84949b68c79e655111e0f84-Allende, Pe] Evening Clips 6/8 Evening News Clips: 6/8/17 ! i Not Responsive i 1 i ·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-··-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-.! r I 6/8 Bloomberg Fiduciary Rule Could See Delays Past January Click Here 6/8 Nasdaq DOL Announces Final Review of Fiduciary Rule Click Here 6/8 Washington Examiner House Republicans move to undo Obama financial advisers rule Click Here 6/8 Politico Pro Isakson introduces bill to block fiduciary rule Click Here 6/8 Forbes DOL Fiduciary Rule Implementation Finally In Sight Click Here 6/8 Financial Planning Bending the truth on the fiduciary rule Click Here -·-·-·..·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. Not Responsive ! ! !-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·! DOL-17-0281-K-000702 AO 836892 OSEC 000702 Not Responsive DOL-17-0281-K-000703 AO 836892 OSEC 000703 Not Responsive . ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 2 Fiduciary Rule Could See Delays Past January Bloomberg Kristen Ricaurte Knebel 6/8 Portions of the Labor Department's fiduciary rule that go into effect in January 2018 could get pushed further back, an agency official said today . The department may consider more exemptions and there could be further changes to the rule, Timothy D. Hauser, deputy assistant secretary for program operations at the DOL's Employee Benefits Security Administration, said during a meeting of the ERISAAdvisory Council. "Even the likelihood" that there will be further changes to the rule is a good enough reason to push back the Jan. 1, 2018, effective date, he said. Portions of the rule that the DOL called the "least controversial" are set to become applicable tomorrow. Other portions, such as the best-interest-contract exemption, aren't set to go into effect until the beginning of next year. The DOL on June 6 sent a proposed request for information on portions of the rule that have been delayed until at least Jan. 1 to the Office of Management and Budget for review. The Obama-era rule aims at reducing conflicts of interest for financial advisers giving advice to retirement savers. President Donald Trump asked the department to re-evaluate the rule. Article 3 DOL Announces Final Review of Fiduciary Rule Nasdaq Dennis Korth 6/8 The fiduciary rule is set to go into partial effect tomorrow, June 9th. However, the DOL has just announced that a final review of the rule is underway . The DOL is awaiting approval from the Office of Management and Budge (0MB), to conduct its full analysis, a piece of work many hope will be the backdrop to rescinding the rule before its full implementation date in January. DOL chief Acosta confirmed the review was underway in a Congressional meeting on President Trump's budget proposal Wednesday. DOL-17-0281-K-000704 AO 836892 OSEC 000704 FINSUM: We have always thought Acosta's end game would be to let the rule go into partial effect now before trying to revise or rescind it later. But given how the DOLhas more options to delay the rule now (given the SEC's coming involvement}, we are starting to doubt if Acosta really wants the rule gone. Article 4 House Republicans move to undo Obama financial advisers rule Washington Examiner Joseph Lawler 6/8 With the Trump administration having failed to stop former President Barack Obama's conflict-of-interest rule for investment advisers from going into effect, House Republicans are looking to legislation to undo the rule. Two Republicans on committees with oversight of the Labor Department introduced legislation Thursday to undo the agency's fiduciary rule, a major regulation that is supposed to begin going into effect Friday and would reshape the rules for retirement advice. Phil Roe, a member of the House Education and Workforce Committee, said on introducing the legislation that the Labor Department rule "would make it harder for low- and middle-income families to save for retirement." "The Obama administration made a reckless, unnecessary trade-off between strong protections for retirement savers and access to affordable retirement advice," the Tennessee Republican said. The rule would require that all advisers and brokers who serve clients with tax-privileged retirement accounts, such as Individual Retirement Accounts, act in their clients' best interests. The Obama administration wrote the rule on the basis that it is necessary to protect savers, especially people rolling 401(k)s over into IRAs, from advisers with conflicts of interest. The concern was that some brokers steer clients into inappropriate high-fee investment products for which the brokers receive kickbacks. Republicans, however, have argued that the rule would raise litigation costs for advisers, leading them to drop middleincome clients and small businesses. After a major lobbying battle, the Obama administration put the rule in motion. After President Trump took office, some congressional Republicans saw a chance to halt the rule But newly appointed Labor Secretary Alexander Acosta said in May that under administrative law, he could not stop the rule from going into effect. That decision disappointed congressional Republicans. Acosta defended it Wednesday in congressional testimony, saying that the rulemaking process is "cumbersome" but necessary. "No one in government should be able to snap their fingers and undo something," he told a budget committee panel, according to the trade publication Pensions & Investments. Republicans and the investment industry have since been weighing their options for stopping the rule. The bill introduced Tuesday by Roe and Rep. Peter Roskam of Illinois, the chairman of the subcommittee on tax policy, would overturn the rule and amend the underlying retirement and tax laws establishing which kinds of financial advice involve a fiduciary relationship between advisers and clients. Advocates of a more stringent fiduciary rule have criticized past Republican proposals for alternatives to the labor rule, saying that they would fall short of establishing a legal standard that advisers act in clients' best interests. On Thursday, House Republicans are also set to pass sweeping a sweeping regulatory overhaul, the Financial Choice Act, that also would stop the fiduciary rule. That legislative package is not expected to advance in the Senate, however. DOL-17-0281-K-000705 AO 836892 OSEC 000705 Article 5 Isakson introduces bill to block fiduciary rule Politico Pro Marianne LeVine 6/8 Sen. Johnny Isakson (R-Ga.) introduced legislation today to block the Labor Department's fiduciary rule. The rule, part of which will take effect Friday, requires broker dealers to consider only their client's best interest - and not commissions or fees - when providing retirement advice. Critics of the rule say that it will only limit access to retirement advice for small savers and increase litigation. lsakson's bill also outlined an alternative best interest standard. The bill's co-sponsors include Senate HELPChairman Lamar Alexander (R-Tenn.). Sen. Mike Enzi (R-Wyo.) Sen. Pat Roberts (R-Ky.); Sen. Tim Scott (R-5.C.) and Sen. Todd Young (R-lnd.) Article 6 DOL Fiduciary Rule lm~lementation Finally In Sight Forbes Brian Menickella 6/8 Brokers offering advice on retirement savings accounts are required to put clients' interests first as of June 9, 2017. The requirement, also known as the Department of Labor (DOL) fiduciary rule, will officially take effect then, after delays and considerable angst. The DOL has said it will not enforce the rule until after January 1, 2018, when the requirements about disclosures and new contracts are set to take effect. However, that too could change. If the current administration has its way, the fiduciary requirement could be amended in the future. Shifting Political Sands and Questions About the Need The new DOL rule expands the "investment advice fiduciary" definition under the Employee Retirement Income Security Act of 1974 (ERISA)to ensure that advisors act in the best interests of their clients, and to put clients' interests above their own. It requires that fees and commissions be clearly disclosed to clients, and it expands the reach of the law to a wider range of financial professionals. Previously only Registered Investment Advisors (RIA's) and their representatives were considered to be fiduciaries for advisory & consulting services. They are paid a fee based on an hourly basis or based on a percentage of a client's holdings and this compensation method helps ensure they are acting in their client's best interest. The new rule applies the requirement to anyone making a recommendation or solicitation of any kind of retirement account. The DOL regulation was controversial when it was created under the Obama administration. The Obama Labor department believed the change to be needed to address biased financial advice that was significantly costing unwitting investors. However, to give the industry time to make changes, enactment was set for April 2017, during the next president's term. Acosta's Decision President Donald Trump wasted no time trying to halt the fiduciary rule implementation. Two weeks into his presidency, he signed an executive order delaying it. His order included instructions for the DOL to conduct an "economic and legal analysis" on the fiduciary rule's potential impact. Some in the industry hoped Mr. Trump's move would lead to changes or the outright elimination of the regulation. However, Labor Secretary Alexander Acosta indicated on May 22 that the DOL's analysis found no "principled legal basis" to postpone the rule's effective date further. DOL-17-0281-K-000706 AO 836892 OSEC 000706 Acosta wrote an opinion piece in the Wall Street Journal announcing that "respect for the rule of law leads us to the conclusion that this date cannot be postponed." He noted that the Labor Department has to "keep in mind two core principles: respect for the individual and respect for the rule of law." While the secretary acknowledged the importance of ensuring that savers and retirees receive prudent investment advice, he added that the fiduciary rule does not align with Mr. Trump's deregulatory goals. In other words, stay tuned for future efforts to overturn or modify the DOL rule before the January 2018 implementation date. The Transition Period Starting June 9, the changes will be primarily be product and fee related. Additionally, in some companies, the types of products that can be presented by some types of advisors (i.e. securities licensed versus insurance brokers) will change. There will also be more use of independent, web-based advisory tools. Additionally, the DOL issued a Field Assistance Bulletin outlining their plans for the phased implementation. The bulletin acknowledged that the department would not "pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions." Clients and their lawyers, however, are not likely to view any non-compliant advisors in as lenient a light. Advisors who assumed the DOL rule would never be implemented should get in line as quickly as possible. They will find themselves out of business or facing lawsuits for not being compliant and showing no good faith effort to comply. The Conflict Of Interest FAQs on the DOL website spell out the exemption provisions for items delayed until next January. The new definition of fiduciary advice goes into effect on June 9, 2017. At that time, the details on Best Interest Contract (BIC) and Principal Transactions Exemptions will be available to fiduciary advisors. From the outset, however, advisors and financial institutions must comply with the "impartial conduct standards" that advisors adhere to fiduciary norms and fair dealing. The standards specifically require the industry to give advice that is in the "best interest" of investors, charge reasonable compensation for services, and make no misleading statements. The administration clearly saw they had no justification for another delay. And while it is unlikely that the rule will be repealed, President Trump's aspiration to ease regulatory burdens might mean that changes are forthcoming. Article 7 Bending the truth on the fiduciary rule Financial Planning Ben Edwards 6/8 Attacks on the Labor Department's fiduciary rule have been renewed even as it begins to take effect. Labor Secretary Alexander Acosta made headlines by conceding his willingness to follow the regulations to phase in. Unlike other Trump administration officials, Acosta deserves praise for his grasp of the rulemaking process and commitment to the rule of law. Still, Acosta signaled a sour view on the substance and announced that he would reopen the process to allow reconsideration of the rule. Regrettably, Acosta's respect for the process does not extend to the individuals protected by the fiduciary rule. In a Wall Street Journal op-ed, Acosta alleged that he would seek to rollback the regulation with two core principles in mind: respect for individuals and respect for the rule of law. Yet weakening the fiduciary rule shows neither. DISRESPECTFOR RESTIREMENTSAVERS Much of the opposition to the fiduciary rule disrespects retirement savers. Many financial advisers now profit by selling them financial products with embedded commissions and fees. To justify this flawed system, these advisers often DOL-17-0281-K-000707 AO 836892 OSEC 000707 advance the contemptuous claim that their clients are too stingy to pay fair value for financial advice. They argue that obscured and conflict-ridden compensation via embedded fees and commissions actually benefits investors by making it palatable to pay for their valuable guidance. And without these fees, financial services firms might offer less advice to a wide number of investors. The truth is, many investors would be horrified to learn the true extent of the fees they pay. One analysis found that, after 10 years, a $100,000 portfolio invested in a high-fee index fund would have earned $41,139 less than it would have earned in a low-fee fund tracking the same index. Under a suitability standard, advisers may sell the higher-fee fund that kicks compensation back to a financial adviser. For the retirement saver, this tainted financial advice will cost more than $4,000 per year. Financial firms rightly fear that investors would not see value in paying this price. Yet the financial industry will insist that financial advisers are adding value. Sales-focused advisers may appear smart to many unsophisticated retirement savers because they wield color-printed pie charts and rosy financial projections - not because they actually perform analytically difficult tasks. In truth, the task of selecting an appropriate portfolio for a saver's situation is not difficult. Established automated investment tools provide this basic assistance at significantly lower costs than traditional advisers. To the extent that financial advisers generate value, a free and fair market should set prices for their compensation. The financial industry also disregards the value that the class-action mechanism provides to investors, instead characterizing the mechanism as nothing more than a boon for trial lawyers. For decades, many disputes between aggrieved investors and financial advisers have been funneled into arbitration processes overseen by FINRA. The rule may make it possible for courts to correct the worst and most common abuses through class-action lawsuits, improving the market and protecting investors. Class actions make it profitable for attorneys to address small but widespread harms that do tremendous collective damage. Importantly, class actions may make it possible for courts to set the clear and binding precedents that FINRA's arbitrators cannot. Cutting these legal remedies out of the rule disrespects the role courts play in investor protection. A JOB DONEHONESTLY Ultimately, the fiduciary rule should improve savings decisions because it requires financial advisers to do their jobs honestly. American investors seek assistance from advisers because of a basic information asymmetry problem: investors know less about financial markets than advisers. Laws allowing advisers to exploit this asymmetry by recommending products that are not in the best interests of investors enshrine the freedom to fleece and to be fleeced. Instead of standing up to those who seeks to swindle savers, Acosta argued that "trust in Americans' ability to decide what is best for them" led him to conclude that the fiduciary rule should be reconsidered. Acosta should explain his curious view that investors who are asking for help somehow already know how to make the best decisions for themselves. Sadly, the new administration's tone sends a signal that Labor will greenlight grift after its review. Not Responsive DOL-17-0281-K-000708 AO 836892 OSEC 000708 Not Responsive DOL-17-0281-K-000709 AO 836892 OSEC 000709 Not Responsive DOL-17-0281-K-000710 AO 836892 OSEC 000710 Not Responsive DOL-17-0281-K-000711 AO 836892 OSEC 000711 Not Responsive DOL-17-0281-K-000712 AO 836892 OSEC 000712 Not Responsive DOL-17-0281-K-000713 AO 836892 OSEC 000713 Not Responsive DOL-17-0281-K-000714 AO 836892 OSEC 000714 Not Responsive DOL-17-0281-K-000715 AO 836892 OSEC 000715 Not Responsive DOL-17-0281-K-000716 AO 836892 OSEC 000716 Not Responsive DOL-17-0281-K-000717 AO 836892 OSEC 000717 Not Responsive DOL-17-0281-K-000718 AO 836892 OSEC 000718 Not Responsive DOL-17-0281-K-000719 AO 836892 OSEC 000719 Not Responsive DOL-17-0281-K-000720 AO 836892 OSEC 000720 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/9/2017 7:25:08 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=70a78d6db84949b68c79e655111e0f84-Allende, Pe] Morning Clips 6/9 Morning News Clips: 6/9/17 Not Responsive 6/8 Bloomberg Fiduciary Rule Targeted by GOP on Eve of Implementation Click Here Not Responsive L--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-j DOL-17-0281-K-000721 AO 836892 OSEC 000721 Not Responsive DOL-17-0281-K-000722 AO 836892 OSEC 000722 Not Responsive DOL-17-0281-K-000723 AO 836892 OSEC 000723 Not Responsive DOL-17-0281-K-000724 AO 836892 OSEC 000724 Not Responsive Article 4 Fiduciary Rule Targeted by GOP on Eve of Implementation Bloomberg Kristen Riscaurte Knebel 6/9 House Republicans took a stab at repealing the Labor Department's embattled fiduciary rule just a day before portions of the regulation were set to take effect June 9. The Affordable Retirement Advice for Savers Act (H.R. 2823), introduced June 8 by Reps. Phil Roe (Tenn.) and Peter Roskam (111.), would turn back the rule, which aims to reduce conflicts of interest by financial advisers giving advice to retirement savers. Also on June 8, Sen. Johnny Isakson (Ga.) reintroduced the Affordable Retirement Advice Protection Act (S. 1321). The bill aims to block the fiduciary rule. Labor Secretary Alexander Acosta indicated in a May 22 op -ed piece in the Wall Street Journal that he wouldn't be pushing back the June 9 applicability date for two key provisions of the rule. Several days after the announcement, Roe expressed his displeasure with Acosta's decision, calling it a "big mistake." The portions of the rule that advisers will need to abide by starting June 9 include the expanded definition of the term "fiduciary" and the impartial conduct standards. The remainder of the rule won't take effect until Jan. 1, 2018, but there's a chance that date could be pushed back, a DOL official said June 8. The rule is currently under a presidentially mandated review, and the DOL will soon ask for public comments on the portions that go into effect next year. The new bill is one of several avenues Republicans are trying to use to dismantle the Obama-era rule. The House passed legislation June 8 to overhaul the Dodd-Frank Act and put the brakes on the fiduciary rule. In addition, the measure would prevent the department from going forward with any other fiduciary rule without the Securities and Exchange Commission developing and finalizing a rule first. The SECcould also be getting in on the action. SECChairman Jay Clayton said June 1 that the commission would seek comment on a range of issues related to the fiduciary rule. --Tim Tim Lineberger Department of Labor L__________ (~J1!l.J __________ _: DOL-17-0281-K-000725 AO 836892 OSEC 000725 Message Lineberger, Timothy L - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/9/2017 9:33:11 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en =15dc286768d945dc9fcda83 7095195fd-RA Acosta] RE: Morning Clips 6/9 From: Sent: To: Subject: Sorry about that, I checked WSJ this morning, don't know how I missed those. Also, not sure which BNA article you are referring to"?The only ones on this subject are the one below from yesterday and the one from this morning's clips, Nothing else new and significant that I'm seeing, 6/9 Wall Street Journal Fiduciary Rule Is Now (Partially) in Effect Click Here 6/9 Wall Street Journal As Fiduciary Rule Phases In,, Now What? Click Here 6/9 Bloomberg Fiduciary Rule Could See Delays Past January Click Here Article 1 Fidu ciary Rule Is Now (Partially) in Effect Wall Street Journal Yuka Hayashi 6/9 When President Donald Trump took office ..many in the financial industry were confident that a looming retirementsavings rule they had opposed for years would soon be dead. To their dismay, the core principle of the rule was implemented Friday. The resilience of the so-called fiduciary rule is partly attributable to delays in appointing senior officials at the Labor Department, the rule's creator, who would be capable of unwinding a major regulation so close to its implementation, according to industry representatives and consumer advocates involved in the process. Labor Secretary Alexander Acosta didn't take up his post unt il late April, after Mr. Trump's first pick for the role withdrew from consideration. Other top positions at the Labor Department remain vacant, leaving career officials·····who had helped to write the original rule-to shepherd a review of the rule that the president requested in February. Aversion toward the risk of litigation from consumer groups has also made the administration reluctant to delay the rule long enough to allow for an overhaul or kill it altogether, industry representatives and consumer advocates say. White House representatives did not provide comment, Mr. Acosta, a former law-school dean ..followed the required rule-making procedures strictly,, rather than taking a risk in delaying the rule. The Labor Department is implementing the regulation in two stages. The core principle that went into effect Fridaytwo months after the original date set by the Obama administration······requires brokers and advisers who work with taxadvantaged retirement savings to be "fiduciaries" who act in the best interest of their clients. Previously, they were required to offer guidance that was "suitable.,'' a looser standard. The rule's operational requirements, such as disclosure of conflicts of interest to investors, will become applicable in DOL-17-0281-K-000726 AO 836892 OSEC 000726 January. The regulation is aimed at avoiding conflicts of interest, which can come about with commission-based compensation. The rule's critics say it would punish smaller savers in the form or reduced access to financial advice and higher costs. THE ROAD TO THE FIDUCIARY RULE ,s, September 2010: Labor Department releases fast version of the rule, withdrawing it a year later amid industry opposition. ,s, February 2015: Labor Department reproposes the fiduciary rule after being urged to do so by President Barack Obama. ,s, April 2016: Labor Department releases the final version of the rule, planning for it to be "effective" June 7, 2016, and "applicable" April 10, 2017. Full compliance is required by Jan. 1, 2018. ,s, October 2016: Anthony Scaramucci, a close associate of Donald Trump,, calls the fiduciary rule 'the dumbest decision to come out of the US government' in decades. ,s, Jan. 20, 2017: President Trump takes office. ,s, Feb. 3: Trump issues a memo requesting re-evaluation of the fldudary rule. ,s, Feb. 15: Andy Puzder, Trump's first pick for Labor Secretary, withdraws. ,s, March 2: Labor Department proposes a 60-day delay for the rule. ,s, April 4: Labor Department announces new "applicability" date of June 9, delayed from April 10. ,s, April 27: Alexander Acosta confirmed as labor secretary. ,s, May 22: Acosta announces the rule will go live June 9 in a Wa ll Street Journal opinion piece. ,s, June 9: The core element of the fiduciary rule is implemented. ,s, Jan. 1, 2018: The rule's operational requirements are set to become applicable. The Labor Department continues to re-evaluate the rule per Mr. Trump's February order. Meanwhile, Mr. Acosta said this week the administration had taken its "fi rst step" to decide the rule's fate, with the Office of Management and Budget requesting information on the rule. The OM Bis the gatekeeper in the rule-making-and rule-changing-process. But some in the industry say it is too late. "We have growing concerns about the ability to fix or significantly alter the fiduciary rule now that it is set to begin on Friday," said Edward Mills, an analyst at FBRCapital Markets & Co. The rule's survival shows the Trump administration's difficulties in meeting its pledge to roll back regulations because it doesn't have people in place to carry out the job. Hundreds of top government positions remain unfilled. At the Labor Department, nominations haven't been made for the dozen or so positions that require Senate confirmation, including assistant secretary for employee benefits security, the overseer of the fiduciary rule. "Many of the pieces were still missing at the DOI...,''said Fred Reish, a lawyer at Drinker Biddle&. Reath lJ.P who specializes in fiduciary issues. "lfTrump wants to implement his agenda through abolishing regulations, he's going to have to fill a lot of positions." Unwinding the fiduciary rule was tough to begin with. Unlike some of the recent Obama-era rules that the Republicancontrolled Congress has successfully overturned, it was already effective when Mr. Trump took office, just waiting to become applicable. That meant changing or delaying the rule required the department: to go through a lengthy rulemaking process again under the Administrative Procedure Act and prove that revising it would bring clear net economic benefit Even with the dock ticking, the action was slow to come. Mr. Trump's memo asking for a re-evaluation of the rule was issued Feb. 3. Time was wasted over his fast pick for labor secretary, fast-food executive Andy Puzder, who was opposed by labor unions and eventually withdrew in February amid allegations of domestic abuse. In early April, the department announced the main part of the fiduciary rule would become applicable in June. Meanwhile, consumer groups supporting the rule stressed that delaying it would be "arbitrary" and "capricious" and open the department to legal DOL-17-0281-K-000727 AO 836892 OSEC 000727 challenges. By the time Mr. Acosta, a safe pkk with known Democratic support, was confirmed on April 27, he had little time left. He declined all requests for meetings from industry executives who wanted him to put the rule on hold. On May 22, he said the rule would go live on .June9, writing in a Wa ll Street Journal opin ion column that "Respect for the rule of law leads us to the conclusion that this date cannot be postponed.'' "Acosta is a smart lawyer. He is not an ideologue," said Mercer Bullard, a law professor at the University of Mississippi who supports the rule. "If Puzder had been appointed, that rule probably wouldn't have been implemented," he said., adding that would have led to a lawsuit by the rule's proponents, which the department would have losL Article 2 As Fiduciary Rule Phases In, Now What? Wall Street Journal Lisa Beilfuss 6/9 A landmark retirement--savings rule's fate remains uncertain, but one thing is clear: Starting June 9., retirement savers are entitled to investment advice that serves their best interest:. The Labor Department's fiduciary rule-which aims to eliminate conflicted advice on an estimated $3 trillion in retirement assets-begins kicking in Friday after a two-month delay that was part of a review ordered by the Trump administration to assess whether the regulation would reduce savers' access to investment advice or disrupt the financial--services industry. While the review is set to continue through year's end and the rule wouldn't take full effect until Jan. 1, 2018, brokers must begin upholding a fiduciary standard, meaning they put clients' interests before their own. Previously, such professionals were held to a suitability standard that allowed them to pitch the products that paid them the best commissions so long as they were suitable for a client's risk profile. Investors can expect changes to how their money is handled, the investment options they have and how they pay for advice. The degree of change will vary by firm and by account, and much will depend on how the labor Department's review plays ouL Here are some things to watch: What happens June 9? As of Friday, brokers and insurance agents must adhere to the best-interest standard, or the spirit of the fiduciary rule. That means advice must be based on clients' interests, rather that than the financial interest of the adviser or firm. It also means brokers can charge no more than "reasonable compensation" and have to offer up more transparency around the compensation they earn, the transactions they make and potential conflicts of interest. While wealth managers and insurance sellers are the hook to act as fiduciaries starting .lune 9, it's essentially on the honor system until Jan. 1. The Labor Department pushed out the compliance deadline for certain parts of the regulation, including its enforcement, giving the industry more time to adjust and potentially preventing compliance with elements that could be revised after the review. For example, advisers don't have to provide clients with a best--interest contract until January, and some client disclosures about compensation and conflicts aren't yet required. How and when are clients hearing about changes? The Labor Department crafted the fiduciary rule in a way that allows flexibility in how firms adopt the best-interest standard. This means changes retirement savers experience will depend on where they have their money and how much they have invested. DOL-17-0281-K-000728 AO 836892 OSEC 000728 Customers of Merrill Lynch with commission-based accounts, for example ..were last year given a choice to make if they want to remain with the firm: either move to Merrill Edge, where they can self-direct their investments, or the firm's new robo service; or pay a fee and stay with thdr broker. At Wells Fargo & Co., meanwhile, customers can remain in commission-based IRAs, though with a slimmer menu of investment options. Brokers there will be required to document and prove they are giving best-interest advice to retirement savers, said Heather Hunt-Ruddy, head of client experience and growth at Wells Fargo Advisors. ".June 9 has this sort of Y2.Kpanic sort of thing," said Ms. Hunt-Ruddy,, referring to the anxiety around how computer systems would interpret the year 2000. "The whole world isn't going to end, but what will change is the responsibility to retirement accounts." Clients of Wells Fargo won't receive notifications of changes until September, Ms. Hunt-Ruddy said. Many firms are waiting for more clarity about how the fiduciary rule might change before finalizing some decisions and alerting clients to them. (Here is a partial list of how some of the biggest brokerages are handling the implementation.) Some clients may receive email or paper communications from their broker that nothing is changing, at least for now. Corrie Scoby, a Memphis, Tenn.-based compliance officer at Arete Capital, said her firm's advisers were told to tell clients by .June8 that the fiduciary rule was kicking in and to direct clients to the firm's regulatory filing that discloses potential conflkts of of interest. "We've got an email prepared that explains this is no real change," Ms. Scoby said, though she added that some changes, such as providing a contract and more disclosures, might be in store after the Labor Department finishes its review. What happens to commission-based accounts? The fiduciary rule includes a grandfathering provision that allows for certain commission--generating accounts to remain as-is after June 9. But investors must generally forgo new investment advice and aren't able to make significant changes to the account if the manager of it is to stay compliant with the regulation. Rather than have their commission accounts grandfathered, some clients may find themselves dropped. That won't necessarily happen immediately and such accounts may simply be frozen in the meantime. Joseph Romano ..president: of Evanston, 111.,-based wealth-management firm Romano Brothers & Co., said compliance costs and legal risks assodated with the rule make it less lucrative to service relatively small accounts. /\s such, he said he has identified some smaller client accounts that he will shed if the Labor Department doesn't make substantial changes to the rule. Those clients won't receive any notification yet, he said, but between June 9 and Jan. 1, "it's pretty much hands off' and his firm won't initiate trade on those clients' behalf. Will investment options change? Most likely. Products that generate more than "reasonable compensation," such as high-fee mutual funds, are likely to be eliminated from retirement account menus. /\nd new products that generate fees are likely to emerge as demand grows for fee-generating choices versus those that pay commissions. Christine Gill, head of investor solutions at Bank of New York Mellon Corp. , said distributors like broker-dealers and retirement-plan platforms have been reducing the number of products they're offering in order to mitigate conflicts of interest. For example, she said, the lineup of mutual funds on offer at some firms has been shrinking so that firms can do the due diligence necessary for compliance with the higher standard of care. DOL-17-0281-K-000729 AO 836892 OSEC 000729 At the same time, new products are being created as more advisers seek investment options that make complying with the fldudary rule easier. For example, Lincoln Financial Group, which sells insurance products, earlier this year launched a line of fee-based vadable and fixed--income annuities. The launch was in part tied to the fiduciary rule as annuities have typically generated commissions. A new type of mutual-fund share has also been designed ahead of the fiduciary rule's deadline, though its adoption hasn't fully caught on amid the uncertainty. "Clean shares" charge only the fee to manage and operate a mutual fund, and don't include payments to distributors that could violate the rule. Article 3 Fiduciary Rule Could See Delays Past January Bloomberg Kristen Ricaurte Knebel 6/9 Portions of the labor Department's fiduciary rule that go into effect in January 2018 could get pushed further back, an agency official said today. The department may consider more exemptions and there could be further changes to the rule, Timothy D. Hauser, deputy assistant secretary for program operations at the DOL's Employee Benefits Security Administration, said during a meeting of the ERISAAdvisory CounciL "Even the likelihood'' that there will be further changes to the rule is a good enough reason to push back the Jan. 1, 2018, effective date, he said. Portions of the rule that the DOL called the "least controversial'' are set to become applicable tomorrow. Other portions, such as the best-interest-contract exemption, aren't set to go into effect until the beginning of next year, The DOL on June 6 sent a proposed request for information on portions of the rule that have been delayed until at least Jan. 1 to the Office of Management and Budget for review. The Obama-era rule aims at reducing conflicts of interest for financial advisers giving advice to retirement savers. President Donald Trump asked the department to re-evaluate the rule. ····Tim Tim Lineberger Department of Labor L_____ J_b)(6) ,_,___ ___! From: RA Acosta Sent: Friday,June09, 2017 8:25 AM To: Lineberger,TimothyL - OSEC Subject: Re: MorningClips6/9 Same issue for bna pro On: 09 June 2017 07:25, "Lineberger, Timothy L - OSEC" [:.·:.·:.·:.·:.·:.·:.·:.·:.·~--:.·:.·:.·:.·:.·:.·:.f~@C.·:.·:.·:~.-:.·:.·:.·:.·:.·:.· wrote: Morning News Clips: 6/9/17 DOL-17-0281-K-000730 AO 836892 OSEC 000730 Not Responsive 6/8 Bloomberg Fiduciary Rule Targeted by GOP on Eve of Implementation Click Here Not Responsive DOL-17-0281-K-000731 AO 836892 OSEC 000731 Not Responsive DOL-17-0281-K-000732 AO 836892 OSEC 000732 Not Responsive DOL-17-0281-K-000733 AO 836892 OSEC 000733 Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Article 4 Fiduciary Rule Targeted by GOP on Eve of lmQlementation Bloomberg Kristen Riscaurte Knebel 6/9 House Republicans took a stab at repealing the Labor Department's embattled fiduciary rule just a day before portions of the regulation were set to take effect June 9. The Affordable Retirement Advice for Savers Act (H.R. 2823), introduced June 8 by Reps. Phil Roe (Tenn.) and Peter Roskam (ill.), would turn back the rule, which aims to reduce conflicts of interest by financial advisers giving advice to retirement savers. Also on June 8, Sen. Johnny Isakson (Ga.) reintroduced the Affordable Retirement Advice Protection Act (S. 1321). The bill aims to block the fiduciary rule. Labor Secretary Alexander Acosta indicated in a May 22 op-ed piece in the Wall Street Journal that he wouldn't be pushing back the June 9 applicability date for two key provisions of the rule. Several days after the announcement, Roe expressed his displeasure with Acosta's decision, calling it a "big mistake ." The portions of the rule that advisers will need to abide by starting June 9 include the expanded definition of the term "fiduciary" and the impartial conduct standards. The remainder of the rule won't take effect until Jan. 1, 2018, but DOL-17-0281-K-000734 AO 836892 OSEC 000734 there's a chance that date could be pushed back, a DOL official said June 8. The rule is currently under a presidentially mandated review, and the DOL will soon ask for public comments on the portions that go into effect next year. The new bill is one of several avenues Republicans are trying to use to dismantle the Obama-era rule. The House passed legislation June 8 to overhaul the Dodd-Frank Act and put the brakes on the fiduciary rule. In addition, the measure would prevent the department from going forward with any other fiduciary rule without the Securities and Exchange Commission developing and finalizing a rule first. The SECcould also be getting in on the action. SECChairman Jay Clayton said June 1 that the commission would seek comment on a range of issues related to the fiduciary rule. --Tim Tim Lineberger Department of Labor L__________ (~J1!l.J __________ _: DOL-17-0281-K-000735 AO 836892 OSEC 000735 Message From: Sent: To: Subject: Hazelton, Jennifer - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8230E055ED214EBEBA3584513464F3B1-HAZELTON, J] 6/9/2017 8:28:55 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=15dc286768d945dc9fcda837095195fd-RA Acosta] Fwd: Wall Street Journa l From: "Barr, G. Stephen - OPA" [~~~~~~~~~~~~~~~~~~~~j-~)_(~f~~~~~~~~~~~~~~~~~~~~~J Subject: Wall Street Journal Date: 09 June 2017 08:04 To: "Hazelton, Jennifer - OSEC" i (b)(6) i Cc: "Rogers, Jillian B - OSEC" [':::::::::::::::::::::::::I~f@::::::::::::::::::::::::::J :'Trupo, Michael - OPA" "l__·-·-·-·-·-·-·-·-·-·-·-·-·(b )( 6) ·-·-·-·-·-·-·-·-·-·-·-·-·-· j _Fiduciary .Rule Is _Now(.Partially) in _Effect Core prindp!e of rule implemented Friday, despite hopes Trump admrnrstration would scrap it; rest to be effective in January By Yuka Hayashi, June 9, 5:30 AM ET \NASHINGTON-When President Donald Trump took office, many in the financial industry were confident that a looming retirement-savings rule they had opposed for years would soon be dead. To their dismay, the core principle of the rule was implemented Friday. The resilience of the so-called fiduciary rule is partly attributable to delays in appointing senior officials at the Labor Department, the rule's creator, who would be capable of unwinding a major regulation so close to its implementation, according to industry representatives and consumer advocates involved in the process. Labor Secretary Alexander Acosta didn't take up his post until late April, after Mr. Trump's first pick for the role withdrew from consideration. Other top positions at the Labor Department remain vacant, leaving career officials-who had helped to write the original rule-to shepherd a review of the rule that the president requested in February. Aversion toward the risk oflitigation from consumer groups has also made the administration reluctant to delay the mle long enough to allow for an overhaul or kill it altogether, industry representatives and consumer advocates say. DOL-17-0281-K-000736 AO 836892 OSEC 000736 White House representatives did not provide comment. Jvfr. .Acosta, a forn1er law-school dean, followed the required rule-making procedures strictly, rather than taking a risk in delaying the rule. The Labor Department is implementing the regulation in two stages. The core principle that went into effect Friday-two months after the original date set by the Obama administration-requires brokers and advisers who work with tax-advantaged retirement savings to be "fiduciaries" who act in the best interest of their clients. Previously, they were required to offer guidance that was "suitable," a looser standard. The ml e's operational requirements, such as disclosure of conflicts of interest to investors, will become applicable in January. The regulation is aimed at avoiding conflicts of interest, which can come about with commission-based compensation. The rule's critics say it would punish smaller savers in the form or reduced access to financial advice and higher costs. The Labor Depaiiment continues to re-evaluate the rule per Mr. Trump's Febmary order. Meanwhile, Mr. Acosta said this week the administration had taken its "first step" to decide the rule's fate, with the Office of Management and Budget requesting information on the mle. The 0MB is the gatekeeper in the mle-makingand rule-changing-process. But some in the industry say it is too late. "We have growing concerns about the ability to fix or significantly alter the fiduciary mle now that it is set to begin on Friday," said Edward Mills, an analyst at FBR Capital \farkets & Co. The mle' s survival shows the Tmmp administration's difficulties in meeting its pledge to roll back regulations because it doesn't have people in place to carry out the job. Hundreds of top government positions remain unfilled. At the Labor Department, nominations haven't been made for the dozen or so positions that require Senate confirniation, including assistant secretary for employee benefits security, the overseer of the fiduciary rule. "Many of the pieces were still missing at the DOL," said Fred Rei sh, a lawyer at Drinker Biddle & Reath LLP who specializes in fiduciary issues. "If Tmmp wants to implement his agenda through abolishing regulations, he's going to have to fill a lot of positions." DOL-17-0281-K-000737 AO 836892 OSEC 000737 Unwinding the fiduciary rule was tough to begin with. Unlike some of the recent Obama-era rules that the Republican-controlled Congress has successfully overturned, it was already effective when Mr. Trump took office, just waiting to become applicable. That meant changing or delaying the rule required the department to go through a lenf:,rthyrule-making process again under the Administrative Procedure Act and prove that revising it would bring clear net economic benefit. Even with the clock ticking, the action was slow to come. Mr. Trump's memo asking for a re-evaluation of the mle was issued Feb. 3. Time was wasted over his first pick for labor secretary, fast-food executive Andy Puzder, who was opposed by labor unions and eventually withdrew in February amid allegations of domestic abuse. In early April, the department announced the main part of the fiduciary rule would become applicable in June. Meanwhile, consumer groups supporting the mle stressed that delaying it would be "arbitrary" and "capricious" and open the department to legal challenges. By the time Mr. Acosta, a safe pick with known Democratic support, was confinned on April 27, he had little time left. He declined all requests for meetings from industry executives who wanted him to put the mle on hold. On May 22, he said the mle would go live on June 9, writing in a Wall Street Journal opinion colunm that "Respect for the mle oflaw leads us to the conclusion that this date cannot be postponed." "1-\costa is a smart lawyer. He is not an ideologue," said Mercer Bullard, a law professor at the University of l'Vrississippiwho supports the rule. "If Puzder had been appointed, that rule probably wouldn't have been implemented," he said, adding that would have led to a lawsuit by the rule's proponents, which the department would have lost. DOL-17-0281-K-000738 AO 836892 OSEC 000738 Message Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/9/2017 5:49:54 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=70a78d6db84949b68c79e655111e0f84-Allende, Pe] Evening Clips 6/9 From: Sent: To: CC: Subject: Evening News Clips: 6/9/17 1 6/9 Wall Street Journal Fiduciary Rule Is Now (Partially) in Effect Click Here 6/9 Wall Street Journal As Fiduciary Rule Phases In, Now What? Click Here 6/9 Washington Post A rule meant to protect retirement savers is in effect for now, despite Republican efforts to kill it Click Here 6/9 The Hill Labor Department falters on fiduciary rule Click Here 6/9 US News and World Report Financial Choice Act Looms Over Fiduciary Rule's Future Click Here -- · L._. ·-·-·-·-·-·-·-·-· 6/9 ··· NOfResponsive ,, · -·,, - ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Deal Breaker -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Labor Dept. Taking Its Time With Worst Government Decision Since Putting President Kennedy In Open- 1 -·-·-·-·-·-·• Click Here ,·-··-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·.Topped_Car ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·.,i i I i Not Responsive I i i--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i DOL-17-0281-K-000739 AO 836892 OSEC 000739 Not Responsive ---------·-·-·-·T·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-T-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·T·-·-·-·-·-·-·-·-·-·-·-·-·-· . Article 1 Fiduciary Rule Is Now {Partially) in Effect Wall Street Journal Yuka Hayashi 6/9 When President Donald Trump took office, many in the financial industry were confident that a looming retirementsavings rule they had opposed for years would soon be dead. To their dismay, the core principle of the rule was implemented Friday. The resilience of the so-called fiduciary rule is partly attributable to delays in appointing senior officials at the Labor Department, the rule's creator, who would be capable of unwinding a majo r regulation so close to its implementation, according to industry representatives and consumer advocates involved in the process. Labor Secretary Alexander Acosta didn't take up his post until late April, after M r. Trump ' s first pick fo r the role withdrew from consideration . Other top positions at the Labor Department remain vacant, leaving career officials - who had helped to write the original rule-to shepherd a review of the rule that the president requested in February. Aversion toward the risk of litigation from consumer groups has also made the administration reluctant to delay the rule long enough to allow for an overhaul or kill it altogether, industry representatives and consumer advocates say. White House representatives did not provide comment. Mr. Acosta, a former law-school dean, followed the required rule-making procedures strictly, rather than taking a risk in delaying the rule. The Labor Department is implementing the regulation in two stages. The core principle that went into effect Fridaytwo months after the original date set by the Obama administration - requires brokers and advisers who work with taxadvantaged retirement savings to be "fiduciaries" who act in the best interest of their clients. Previously, they were DOL-17-0281-K-000740 AO 836892 OSEC 0007 40 required to offer guidance that was "suitable," a looser standard. The rule's operational requirements, such as disclosure of conflicts of interest to investors, will become applicable in January. The regulation is aimed at avoiding conflicts of interest, which can come about with commission-based compensation. The rule's critics say it would punish smaller savers in the form or reduced access to financial advice and higher costs. THE ROAD TO THE FIDUCIARY RULE • September 2010: Labor Department releases first version of the rule, withdrawing it a year later amid industry opposition. • February 2015: Labor Department reproposes the fiduciary rule after being urged to do so by President Barack Obama. • April 2016: Labor Department releases the final version of the rule, planning for it to be "effective" June 7, 2016, and "applicable" April 10, 2017. Full compliance is required by Jan. 1, 2018. • October 2016: Anthony Scaramucci, a close associate of Donald Trump, calls the fiduciary rule 'the dumbest decision to come out of the U.S. government' in decades. • Jan. 20, 2017: President Trump takes office. • Feb. 3: Trump issues a memo requesting re-evaluation of the fiduciary rule. • Feb. 15: Andy Puzder, Trump's first pick for Labor Secretary, withdraws. • March 2: Labor Department proposes a 60-day delay for the rule. • April 4: Labor Department announces new "applicability" date of June 9, delayed from April 10. • April 27: Alexander Acosta confirmed as labor secretary. • May 22: Acosta announces the rule will go live June 9 in a Wall Street Journa l opinion piece. • June 9: The core element of the fiduciary rule is implemented. • Jan. 1, 2018: The rule's operational requirements are set to become applicable. The Labor Department continues to re-evaluate the rule per Mr. Trump's February order. Meanwhile, Mr. Acosta said this week the administration had taken its "first step" to decide the rule's fate, with the Office of Management and Budget requesting information on the rule. The 0MB is the gatekeeper in the rule-making-and rule-changing-process. But some in the industry say it is too late. "We have growing concerns about the ability to fix or significantly alter the fiduciary rule now that it is set to begin on Friday," said Edward Mills, an analyst at FBRCapital Markets & Co. The rule's survival shows the Trump administration's difficulties in meeting its pledge to roll back regulations because it doesn't have people in place to carry out the job. Hundreds of top government positions remain unfilled. At the Labor Department, nominations haven't been made for the dozen or so positions that require Senate confirmation, including assistant secretary for employee benefits security, the overseer of the fiduciary rule. "Many of the pieces were still missing at the DOL," said Fred Reish, a lawyer at Drinker Biddle & Reath LLPwho specializes in fiduciary issues. "lfTrump wants to implement his agenda through abolishing regulations, he's going to have to fill a lot of positions." Unwinding the fiduciary rule was tough to begin with. Unlike some of the recent Obama -era rules that the Republican controlled Congress has successfully overturned, it was already effective when Mr. Trump took office, just waiting to become applicable. That meant changing or delaying the rule required the department to go through a lengthy rulemaking process again under the Administrative Procedure Act and prove that revising it would bring clear net economic benefit. Even with the clock ticking, the action was slow to come. Mr. Trump's memo asking for a re-evaluation of the rule was issued Feb. 3. Time was wasted over his first pick for labor secretary, fast-food executive Andy Puzder, who was opposed DOL-17-0281-K-000741 AO 836892 OSEC 0007 41 by labor unions and eventually withdrew in February amid allegations of domestic abuse. In early April, the department announced the main part of the fiduciary rule would become applicable in June. Meanwhile, consumer groups supporting the rule stressed that delaying it would be "arbitrary" and "capricious" and open the department to legal challenges. By the time Mr. Acosta, a safe pick with known Democratic support, was confirmed on April 27, he had little time left. He declined all requests for meetings from industry executives who wanted him to put the rule on hold. On May 22, he said the rule would go live on June 9, writing in a Wall Street Journal opinion column that "Respect for the rule of law leads us to the conclusion that this date cannot be postponed." "Acosta is a smart lawyer. He is not an ideologue," said Mercer Bullard, a law professor at the University of Mississippi who supports the rule. "If Puzder had been appointed, that rule probably wouldn't have been implemented," he said, adding that would have led to a lawsuit by the rule's proponents, which the department would have lost. Article 2 As Fiduciary Rule Phases In, Now What? Wall Street Journal Lisa Beilfuss 6/9 A landmark retirement-savings rule's fate remains uncertain, but one thing is clear: Starting June 9, retirement savers are entitled to investment advice that serves their best interest. The Labor Department's fiduciary rule-which aims to eliminate conflicted advice on an estimated $3 trillion in retirement assets-begins kicking in Friday after a two-month delay that was part of a review ordered by the Trump administration to assess whether the regulation would reduce savers' access to investment advice or disrupt the financial-services industry. While the review is set to continue through year's end and the rule wouldn't take full effect until Jan. 1, 2018, brokers must begin upholding a fiduciary standard, meaning they put clients' interests before their own. Previously, such professionals were held to a suitability standard that allowed them to pitch the products that paid them the best commissions so long as they were suitable for a client's risk profile. Investors can expect changes to how their money is handled, the investment options they have and how they pay for advice. The degree of change will vary by firm and by account, and much will depend on how the Labor Department's review plays out. Here are some things to watch: What happens June 9? As of Friday, brokers and insurance agents must adhere to the best-interest standard, or the spirit of the fiduciary rule. That means advice must be based on clients' interests, rather that than the financial interest of the adviser or firm. It also means brokers can charge no more than "reasonable compensation" and have to offer up more transparency around the compensation they earn, the transactions they make and potential conflicts of interest. While wealth managers and insurance sellers are the hook to act as fiduciaries starting June 9, it's essentially on the honor system until Jan. 1. The Labor Department pushed out the compliance deadline for certain parts of the regulation, including its enforcement, giving the industry more time to adjust and potentially preventing compliance with elements that could be revised after the review. For example, advisers don't have to provide clients with a best-interest contract until January, and some client disclosures about compensation and conflicts aren't yet required. How and when are clients hearing about changes? DOL-17-0281-K-000742 AO 836892 OSEC 0007 42 The Labor Department crafted the fiduciary rule in a way that allows flexibility in how firms adopt the best-interest standard. This means changes retirement savers experience will depend on where they have their money and how much they have invested. Customers of Merrill Lynch with commission-based accounts, for example, were last year given a choice to make if they want to remain with the firm: either move to Merrill Edge, where they can self-direct their investments, or the firm's new robo service; or pay a fee and stay with their broker. At Wells Fargo & Co., meanwhile, customers can remain in commission-based IRAs, though with a slimmer menu of investment options. Brokers there will be required to document and prove they are giving best-interest advice to retirement savers, said Heather Hunt-Ruddy, head of client experience and growth at Wells Fargo Advisors. "June 9 has this sort of Y2K panic sort of thing," said Ms. Hunt-Ruddy, referring to the anxiety around how computer systems would interpret the year 2000. "The whole world isn't going to end, but what will change is the responsibility to retirement accounts." Clients of Wells Fargo won't receive notifications of changes until September, Ms. Hunt-Ruddy said. Many firms are waiting for more clarity about how the fiduciary rule might change before finalizing some decisions and alerting clients to them. (Here is a partial list of how some of the biggest brokerages are handling the implementation.) Some clients may receive email or paper communications from their broker that nothing is changing, at least for now. Corrie Scoby, a Memphis, Tenn.-based compliance officer at Arete Capital, said her firm's advisers were told to tell clients by June 8 that the fiduciary rule was kicking in and to direct clients to the firm's regulatory filing that discloses potential conflicts of of interest. "We've got an email prepared that explains this is no real change," Ms. Scoby said, though she added that some changes, such as providing a contract and more disclosures, might be in store after the Labor Department finishes its review. What happens to commission-based accounts? The fiduciary rule includes a grandfathering provision that allows for certain commission-generating accounts to remain as-is after June 9. But investors must generally forgo new investment advice and aren't able to make significant changes to the account if the manager of it is to stay compliant with the regulation. Rather than have their commission accounts grandfathered, some clients may find themselves dropped. That won't necessarily happen immediately and such accounts may simply be frozen in the meantime. Joseph Romano, president of Evanston, 111.,-based wealth-management firm Romano Brothers & Co., said compliance costs and legal risks associated with the rule make it less lucrative to service relatively small accounts. As such, he said he has identified some smaller client accounts that he will shed if the Labor Department doesn't make substantial changes to the rule. Those clients won't receive any notification yet, he said, but between June 9 and Jan. 1, "it's pretty much hands off" and his firm won't initiate trade on those clients' behalf. Will investment options change? Most likely. Products that generate more than "reasonable compensation," such as high -fee mutual funds, are likely to be eliminated from retirement account menus. And new products that generate fees are likely to emerge as demand grows for fee-generating choices versus those that pay commissions. Christine Gill, head of investor solutions at Bank of New York Mellon Corp., said distributors like broker-dealers and DOL-17-0281-K-000743 AO 836892 OSEC 0007 43 retirement-plan platforms have been reducing the number of products they're offering in order to mitigate conflicts of interest. For example, she said, the lineup of mutual funds on offer at some firms has been shrinking so that firms can do the due diligence necessary for compliance with the higher standard of care. At the same time, new products are being created as more advisers seek investment options that make complying with the fiduciary rule easier. For example, Lincoln Financial Group, which sells insurance products, earlier this year launched a line of fee-based variable and fixed-income annuities. The launch was in part tied to the fiduciary rule as annuities have typically generated commissions. A new type of mutual-fund share has also been designed ahead of the fiduciary rule's deadline, though its adoption hasn't fully caught on amid the uncertainty. "Clean shares" charge only the fee to manage and operate a mutual fund, and don't include payments to distributors that could violate the rule. Article 3 A rule meant to protect retirement savers is in effect for now, despite Republican efforts to kill it Washington Post Jannelle Marte 6/9 A rule meant to make it easier for retirement savers to trust their financial advisers began its long-awaited roll out on Friday. But investors may not want to let their guard down just yet. Implementation of the retirement rule, which requires brokers working with retirement savers to put their clients' interests ahead of their own, marks a major victory for consumer advocates, lawmakers and retirement groups who have been pushing for the regulation for more than six years. The rule, originally slated to take effect in April, was delayed by two months after President Trump signed a memo asking the Labor Department to reevaluate the regulation and determine if it is harmful for investors. Last month, Labor Secretary Alexander Acosta announced that he could not delay the rule any further. Yet even as supporters of the regulation celebrate the milestone, many of them are reminding savers that the fight isn't quite over. "We won an important battle, but the war goes on," said Barbara Roper, director of investor protection for the Consumer Federation of America and a long time advocate for the rule. Sen. Elizabeth Warren (D-Mass.), who worked with the Obama administration to promote the rule, posted a video to Twitter Friday congratulating consumers for the "huge" accomplishment. Still, she cautioned people to "stay alert," because the "Trump administration may come back again and try to take down the rule." The fiduciary rule has faced robust opposition from Republicans and industry groups since it was first introduced by the Labor Department in 2010. But efforts to kill or weaken the rule intensified after the election, when Republican victories in Congress and the White House provided more momentum to people who say the rule will raise legal costs and limit options for investors. One provision tucked inside of a sweeping regulatory reform bill that was passed by the House of Representatives on Thursday would repeal the fiduciary rule and block the Labor Department from proposing a new fiduciary standard until after the Securities and Exchange Commission proposes its own rule. SECChairman Jay Clayton announced earlier this month that he would be seeking input about the fiduciary rule, a sign that the agency could propose its own changes. And when the Labor Department announced that the rule would take partial effect starting in June, it said full enforcement of the regulation would not start until January. Acosta also made it clear that the department would continue to review the rule and changes could be made in the future. Supporters say the fiduciary rule can help protect ordinary savers from hidden fees and conflicts of interest in retirement advice that could eat into their savings. Such conflicted advice costs retirement savers about $17 billion a year, according to estimates from the Obama administration - though some consumer advocates say the real cost is DOL-17-0281-K-000744 AO 836892 OSEC 0007 44 actually much higher. Until now, brokers working with retirement savers were only required to make sure the investments they sold were "suitable" for their clients. For instance, a broker choosing between two similar investment products could recommend the option that will pay them the most, even if it comes with slightly higher fees for the investor. But starting Friday, brokers are required to make recommendations based on what is best for the saver. The rule also requires brokers to disclose conflicts of interest, such as when they are paid by a third party for selling a particular product. Proponents of the rule say it is supposed to clear up one of the biggest challenges savers face when they turn to financial professionals for help: They may not understand the complicated investment strategies they're being offered. And many people may not realize they received questionable advice until after they've lost money. Charlene Furnari, 73, hired a broker about 10 years ago to help her move her retirement savings from a 401(k) plan into an individual retirement account. The retired secretary said she trusted him to create a conservative portfolio that would help her savings last. But she later learned that she the broker had invested a chunk of her savings in an expensive variable annuity, real estate investment trusts and in an oil and gas partnership, a complicated investment product with high fees and volatile performance. "It was for his benefit," said Furnari, who dropped the broker in 2013 and hired a financial adviser who built her a simpler portfolio made up mostly of low-cost index funds. "I didn't have a clue what was happening." Some financial firms and industry groups say the rule may have the unintended consequence of limiting savers' options. For example, some brokers may eliminate investment options with different fee structures that they fear will face more scrutiny under the rule, leaving customers with fewer choices, said Lisa Bleier, managing director and associate general counsel for the Securities Industry and Financial Markets Association, a trade group. But even if opponents succeed in revising the regulation, the rulemaking process has already set off a series of changes in the industry that could benefit consumers. Over the past several months, brokerage firms have lowered fees, designed new mutual fund share classes with simpler fee structures and eliminated some commission-based retirement accounts. "Markets are already moving in this direction," said Cristina Martin -Firvida, director of financial security for AARP. "People saving for retirement absolutely are demanding this now." Article 4 Labor Department fa lters on fiduciary rule The Hill Albert Downs 6/9 While the political chattering class spent a recent news cycle criticizing a typo from a presidential tweet, the Trump administration's Department of Labor actually made a meaningful policy error that will affect the lives of millions of Americans. The recent decision by DOL to move forward with implementation of the costly Obama-era "fiduciary rule" will hurt average investors and is a far cry from fulfilling the campaign promise to protect low -cost savings tools. Starting in 2010, the Obama administration sought to redefine the regulatory meaning of "investment advice fiduciary" under the 1974 Employee Retirement Income Security Act. Following a failed attempt in the fall of 2011, the administration proposed a reworked fiduciary rule in the spring of 2015 that was finalized last year. Under ERISA,financial professionals providing investment advice and services to people saving for retirement are subject to a series of tests that trigger limitations on the types of services they can provide. The Obama fiduciary rule, set to take effect Friday, expands the triggers such that many forms of financial planning will become illegal. An estimated 7.2 million individual retirement account holders in America -- nearly 60 percent of those saving for the DOL-17-0281-K-000745 AO 836892 OSEC 0007 45 future -- will lose access to financial advice services. By forcing nearly $4 billion worth of regulatory compliance costs onto consumers' investment accounts, the regulation is projected t o set the minimum average account balance at $360,000 - more than six times the current average personal investment account. The immediate damage the regulation would do has sparked legal challenges across the country, with opposition so strong that at least one case may be headed for the Supreme Court. The impact of this regulation is clear: Low-cost options for financial planning will disappear and retirement saving tools will become a luxury . Supporters say that the fiduciary rule is necessary because individuals are unable to make decisions about their own money without government intervention. Using flawed methodology, President Obama's Council of Economic Advisors claimed that new regulations on financial plans could add as much as $17 billion each year to Americans' retirement accounts. In reality, demand for savings and investment tools -young Americans report achieving financial freedom as their top goal by a three-to-one margin over the next goal - has made the market for financial planning serve consumers better than ever . That competition fueled improvement is evidenced by digital financial services being used by 71 percent of young savers - when individuals have control over their own money, they seek out the best savings and investment options for themselves. Further, the fiduciary rule's limitation on access to affordable investment services means that as much as $80 billion will be lost out of personal accounts. Within a few short weeks of taking office, President Trump signed an executive memorandum outlining his administration's concerns with the fiduciary rule. The White House directed the DOL to reexamine the regulation and rewrite it, if necessary. Now, Labor Secretary Alexander Acosta is claiming the administration cannot fulfill this promise because of legal concerns with the Administrative Procedure Act, which establishes the process for executive agency regulation. Secretary Acosta deserves credit for trying to respect the rule of law, but the APA provides him with options. Given that the president has already ordered the rule to be reviewed for modification or repeal, the APA allows (and common sense demands) that implementation of the rule be delayed until that review is final. DOL initially issued a delay proposal and concluded that public concerns over implementation were great enough to warrant an extended comment period while the rule is reviewed. Combine the explicit statement of intent to revise or repeal the rule by the new administration with the vast concern expressed to DOL via public comment, and it's likely that the APA's "good cause" for delay exception would apply. Instead, Secretary Acosta has chosen to begin the scheduled implementation phase-in on June 9. Congress also has the power to prevent implementation of the fiduciary rule. Rep. Joe Wilson (R-S.C.)has introduced legislation, along with 39 cosponsors, to delay the effective date until the regulation can be fully reviewed by the new administration. During the end of Obama's term, both chambers of Congress worked to defund the rule through the appropriations process. If DOL does not reconsider its delay of the rule until the White House-directed review can be completed, Congress must act to prevent Washington from taking away the financial planning tools on which millions of Americans depend. Albert Downs is the senior economic analyst at Americans for Prosperity, specializing in federal fiscal policy. Follow him on Twitter: @albertjdowns Article 5 Financia l Choice Act Looms Over Fiduciary Rule's Future Andrew Soergel Jon Shazar 6/9 A long-delayed Obama-era mandate requiring financial advisers to act in the best interests of their clients went into DOL-17-0281-K-000746 AO 836892 OSEC 0007 46 partial effect Friday, but its future remains uncertain with the previous day's passage of a regulatory -repeal bill in the House of Representatives. The so-called fiduciary rule and its "best interest" requirement that is now in effect was borne out of concern during the Obama administration that conflicts of interest in the retirement planning industry were swindling Americans out of as much as $17 billion each year. Proponents have argued the rule makes retirement planning safer and more transparent. "My clients know they receive advice that places their interests first - isn't that how we should all work? It's time for special interests to stop delaying and start placing their clients' interests before their own," Geoff Brown, CEO of the National Association of Personal Financial Advisors, said in a statement last month. But the $17 billion total has raised eyebrows among some financial industry analysts who argue the administration overstated the problem and is potentially handcuffing advisers to expensive and prohibitive new guidelines. They argue the new requirements would limit the kinds of retirement-planning packages they can offer while potentially raising costs for clients. "This estimate has many problems and should not be the basis for such a broad and sweeping rule," Diana FurchtgottRoth, a senior fellow at the Manhattan Institute and director of its Economics21 program, said in a statement this week. In line with his agenda of deregulation, Trump ordered that the rule be examined shortly after taking office, and the Labor Department subsequently delayed implementation of the "best interest" mandate from April 10 to June 9. Labor Secretary Alexander Acosta - who was not confirmed to his position until late April, and then only after Trump's first pick for the post, Andrew Puzder, withdrew from consideration - acknowledged in The Wall Street Journal late last month that "some have called for a complete delay of the rule." But he said officials "found no principled legal basis to change the June 9 date while we seek public input." Compliance with the full rule, should Acosta permit its implementation, is not required until Jan. 1. Meanwhile, a review of the rule remains ongoing, and the labor secretary reportedly said this week an Office of Management and Budget request for information represented "the first step" in deciding the rule's future. Appearing before congressional lawmakers on Wednesday, Acosta said the government is seeking public comment from industry experts about how the rule would impact business, and that it would have been inappropriate for him to start "pre-judging the rule" before he had more information on what it would and wouldn't do. But the rule's future isn't necessarily guaranteed even if Acosta decides to let it go forward in full. The House on Thursday voted to pass the Financial Choice Act - a bill championed by House Financial Services Committee Chairman Jeb Hensarling, R-Texas, that would strip back certain Dodd-Frank financial reform regulations and effectively scrap the fiduciary rule. The bill passed by a 233-186 vote, largely along party lines. The Choice Act's prospects in the Senate don't look great, considering the considerable opposition Democrats have put up in response to the legislation, and the fiduciary rule-repeal could end up being among a number of its tenets dropped during Senate deliberations. Yet Republicans don't appear to be taking chances on the fiduciary rule's implementation. Just hours before voting on the Choice Act, Reps. Phil Roe, R-Tenn., and Peter Roskam, R-II1.,on Thursday introduced the Affordable Retirement Advice for Savers Act, which also would overturn the fiduciary rule. "The Obama administration made a reckless, unnecessary trade-off between strong protections for retirement savers and access to affordable retirement advice," Roe said. "This legislation reflects a more responsible solution that will ensure all Americans have access to affordable retirement advice that's in their best interest." DOL-17-0281-K-000747 AO 836892 OSEC 0007 4 7 Not Responsive DOL-17-0281-K-000748 AO 836892 OSEC 0007 48 Not Responsive -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 7 Labor Dept. Taking Its Time With Worst Government Decision Since Putt ing President Kennedy In Open-Topped Car Deal Breaker Jon Shazar 6/9 You might expect there to be a certain degree of urgency on the part of the Trump administration in tackling one of the greatest injustices in U.S. history. We're talking, of course, about the Labor Department's fiduciary rule, which takes the unconscionable step of forcing brokers to put their retirement-savings clients' interests ahead of their own. One of the first victims of President Trump's one-way Loyalty Street, Anthony Scaramucci, said the rule was a black mark in U.S. history that would live in infamy alongside the Dred Scott decision and pledged, "We're going to repeal it." The somewhat more measured Gary Cohn settled for dismissing it as a "bad ru le for consumers." Either way, it's clear that Trump and his team want the damned thing gone. Not that you'd guess that from the rather leisurely time they're taking on the matter. (Granted, they may be distracted by some other pressing matters.) Labor Secretary Alex Acosta last month mournfully announced that there was nothing he cou ld do about the wicked new regulation because there wasn't time. Whether this was because Team Trump didn't plan for the rule's repeal or replacement during the Trump Tower show prior to the inauguration, or that it waited six DOL-17-0281-K-000749 AO 836892 OSEC 0007 49 weeks after that to formally delay its implementation, or that the president's first choice to lead the Labor Department didn't quite managed to be his only Cabinet pick to flame out and thus left the department headless for longer than necessary, or because the president was too busy whining and rubbing Paul Singer's face in his victory to give Acosta his marching orders, or because, as House Speaker Paul Ryan might suggest, Trump doesn't know what the hell he's doing, is unclear. Still, Acosta promised to take a good, hard look at the unstoppable fiduciary rule anyway, in hopes of at least mitigating the carnage it would unleash. Given the importance of the issue, surely Acosta got started on it as soon as he took office on April 28, right? Or at least by May 22, when he wrote his sad column for the Journal, explaining that at least one member of the Trump administration respects the rule of law and thus would allow the rule to come into effect, which it will tomorrow? Surely, such a pressing matter would warrant action more than two days before the rule began wreaking havoc? Meh, maybe not. Mr. Acosta, at a congressional hearing on President Donald Trump's budget proposal, said the Office of Management and Budget put out a request for information Wednesday morning on the fiduciary rule. The OM B is the gatekeeper in the rule-making-and rule-changing-process .... "That is the first step," Mr. Acosta said. "We need that information and data in order to decide how to proceed." Labor Secretary Says Final Review of Fiduciary Rule in Motion [WSJ] Not Responsive DOL-17-0281-K-000750 AO 836892 OSEC 000750 Not Responsive DOL-17-0281-K-000751 AO 836892 OSEC 000751 Not Responsive DOL-17-0281-K-000752 AO 836892 OSEC 000752 Not Responsive DOL-17-0281-K-000753 AO 836892 OSEC 000753 Not Responsive DOL-17-0281-K-000754 AO 836892 OSEC 000754 Not Responsive DOL-17-0281-K-000755 AO 836892 OSEC 000755 eyes on Washington were all glued to the drama around former FBI Director James Corney. Infrastructure Week didn't contain any new actual policy proposals, despite an exultant tweet from Vice President Mike Pence calling it a "banner week for infrastructure," and Trump didn't sign a bill. Instead, he signed a purely symbolic document in support of Rep. Bill Shuster's plan to create a nonprofit to oversee air traffic control, and released a vague list of infrastructure principles that had already been released in his budget. But behind all the theater, stuff really is happening in Washington. Trump's political appointees are-slowly-getting settled into their new jobs, reviewing Obama-era policies and leaving their fingerprints on the bureaucracy. These changes don't make national headlines, and they probably won't be mentioned in a tweet from the commander-inchief-but they could affect the lives of everyday Americans. So you don't miss these changes, The Agenda is launching a weekly series highlighting five important policy changes that took place in the past week. It will track how Trump's agenda is being implemented across the government, even as the White House remains politically bogged down by the Russia investigation and struggles to work with Congress. And what better week to begin than this one when Washington was fixated on one Senate hearing room, while Trump's appointees continued to roll back Obama's agenda and sweep in a new era of conservative policy. 1. A boost for Uber and McDonald's. It's the most controversial question in the labor world these days: When is a worker an employee, and when is he or she an independent contractor? That question has been especially controversial for "gig economy" companies like Uber and Postmates. But increasingly, regular businesses are also opting to classify their workers as independent contractors, which can cut their labor costs sharply by not obliging them to offer benefits like health insurance or pay employer payroll taxes. According to one recent study, the percentage of workers employed as contractors grew by almost 30 percent from 2005 to 2015. In 2015, the Obama Administration gave workers a win on this one: It issued a guidance document explaining how the Department of Labor would interpret the law, outlining the economic tests it employed in determining whether an employer was misclassifying its workers. The Department of Labor had already been using that policy in enforcing the law, but putting it in writing sent a clear message to employers across the country that the Obama administration was serious about cracking down on worker misclassification. On Wednesday, the Trump administration withdrew the guidance document. This was a win for business owners in any number of sectors-not just Uber, but industries such as farming and construction, which increasingly use independent contractors. The withdrawal of the document doesn't change the underlying law, the Fair Labor Standards Act, or the DOL's current interpretation of it but sends a strong signal to employers that Labor Secretary Alexander Acosta plans to interpret it differently than his predecessor. "The big story is not that, for whatever reason, they pulled down guidance," said David Weil, who issued the document under Obama. "The real question is what else comes with this." Acosta also withdrew another Obama-era guidance document on how the department will determine whether a parent company, like McDonald's or Subway, is jointly responsible for its franchises' labor violations. As with worker misclassification, the Obama-era DOL interpreted the joint employment standard favorably for workers; its withdrawal is a victory for businesses. 2. A trade war with Mexico averted-for now. Trump has stormed on about the North American Free Trade Agreement, calling it a "trading disaster" and vowing to rip it up, suggesting that a trade war with Mexico may be on the horizon. But on Tuesday, the United States and Mexico went the other direction and actually came to a deal, averting a potential trade crisis when they ended a dispute on Mexican sugar exports. The showdown was seen as a first test for the two countries as they, along with Canada, seek to preserve and update NAFTA later this year. DOL-17-0281-K-000756 AO 836892 OSEC 000756 Not Responsive DOL-17-0281-K-000757 AO 836892 OSEC 000757 Not Responsive DOL-17-0281-K-000758 AO 836892 OSEC 000758 Not Responsive DOL-17-0281-K-000759 AO 836892 OSEC 000759 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/11/2017 8:05:11 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=70a78d6db84949b68c79e655111e0f84-Allende, Pe] Morning Clips 6/11 ____ Morning .News CIips:_6/ 11/ 17 ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- Not Responsive 6/10 Washington Post An Obama regulation is allowed to go into effect, for now Click Here 6/11 Crain's Cleveland Business Fiduciary rule is creating concern for some, opportunity for others Click Here ·-· -·-·-·-·-·-·-·-·-·-·-·--·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-··-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·-, Not Responsive DOL-17-0281-K-000760 AO 836892 OSEC 000760 Not Responsive DOL-17-0281-K-000761 AO 836892 OSEC 000761 Not Responsive DOL-17-0281-K-000762 AO 836892 OSEC 000762 Not Responsive DOL-17-0281-K-000763 AO 836892 OSEC 000763 Not Responsive DOL-17-0281-K-000764 AO 836892 OSEC 000764 Not Responsive -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·. Article 5 An Obama regulation is allowed to go into effect, for now Washington Post Editorial board 6/10 ONE OF President Barack Obama's last major policies was the "fiduciary rule," a Labor Department regulation aimed at alleged conflicts of interest in the professional advice that millions of Americans receive about their tax-advantaged retirement accounts. To cut a long story short, previous regulations require advisers to find their clients "suitable" investments, a looser standard than applies to fiduciaries, who are legally obligated to serve the client's "best interest." In practice, this allowed advisers to accept extra compensation for steering clients into certain investment products that were okay, but not necessarily optimal. The fiduciary rule applied the best-interest standard, culminating more than a half decade of brutal Washington trench warfare that had pitted the Obama administration and its labor - and consumer-group allies against financial companies and their Republican allies. On balance, it was a sound, common-sensical measure. Alas, one of President Trump's first acts as president was to re-open the whole matter at the behest of the opponents. On Feb. 3, he ordered the Labor DOL-17-0281-K-000765 AO 836892 OSEC 000765 Department to review the rule with an eye toward scrapping it. "This is exactly the kind of government regulatory overreach the president was put in office to stop," White House press secretary Sean Spicer said at the time. In recent days, Labor Secretary Alexander Acosta has given the fiduciary rule's supporters new hope by announcing that he was going to allow it to go into effect on Friday, after a brief postponement to assess the impact of Mr. Trump's edict. In a Wall Street Journal op-ed, Mr. Acosta acknowledged that the fiduciary rule had survived federal court challenge so far and that federal law did not permit him to block it pending the reconsideration, and possible rescission, implied by Mr. Trump's memorandum. Instead, he will launch a new study of the rule, with time for comment from both industry and the public, while it remains on the books. "Deregulation must find its way through the thicket of law," Mr. Acosta wrote. Observing these legal requirements is to Mr. Acosta's credit, of course. Caveats - big ones - apply, however. Full enforcement of the new rule for all kinds of retirement accounts would not begin until Jan. 1, 2018, in any case. Mr. Acosta's op-ed strongly implied he agrees with opponents' claim that the fiduciary rule unduly limits consumer options. His reference to the "thicket of law" therefore sounded like an appeal for patience while the department figures out a legally permissible way to put Mr. Trump's manifest policy objective into practice. Whatever eventually happens, the entire saga is a case study in the federal regulatory process's costly complexity. The best-case scenario is that the rule survives undiluted after months of additional uncertainty for both investment advisers and their customers. The worst-case, and all-too, likely, scenario is that it does not. Article 6 Fiduciary rule is creating concern for some, opportunity for others Crain's Cleveland Business Jeremy Nobile 6/11 The Department of Labor's fiduciary rule, designed to force more transparency into the lucrative industry of financial advising, is creating no shortage of challenges for advisers who service retirement accounts. Yet, where many advisers are lamenting what amounts to the most sweeping and costly change their industry has undergone in recent memory - possibly ever - some firms stand to capitalize on the shake-up the rule is bound to have. "If we think about this selfishly, it does create more potential for enterprises like ours," said Jeff Concepcion, founder and CEOof Beachwood-based Stratos Wealth Partners, a registered investment adviser that offers securities products through LPL Financial, the country's largest independent broker-dealer network. "There's opportunity to grow, and that's a silver lining for those who have capacity, resources and skills to adapt," he said. Smaller adviser firms and solo practitioners that rely largely on a commission-heavy brokerage business may struggle to adapt to the new changes in comparison to their larger counterparts with expansive networks, more resources and large compliance teams lending them support. Struggling advisers are the ones most likely to consider selling to a firm like Stratos, which has 87 offices (in 28 states) and $10.7 billion in total assets under management. The firm is what's called a "super OSJ": an extra large office of supervisory jurisdiction, or in other words, an independent broker-dealer that provides consulting business services to other advisers for a fee and back-office support in areas like compliance. Concepcion said he recently spoke with a small team in Gulfport, Miss., led by an older adviser who, in reaction to the DOL rule, thinks now is a proper time to exit the business. Concepcion said one of his teams likely will acquire that firm's brokerage practice. DOL-17-0281-K-000766 AO 836892 OSEC 000766 There's a lot of old money in Cleveland. Experts say much of that is tied to older financial advisers - a trait that generally can be said for the industry at-large - with paltry numbers of young people getting into the business. Those elements combined have been driving consolidation on their own as advisers with no succession plans retire and sell off their portfolios to advisers looking to grow. This rule is likely to speed up that trend. "I do think this is going to drive a lot of acquisitions of advisers heavy in the brokerage side who have conducted business in this manner for 25, 35, 45 years and don't know they 're equipped for change," Concepcion said. "This is another catalyst that's accelerating an already significant trend of older advisers looking to get out of the business." 'Out of left field' In February, President Donald Trump ordered implementation of the rule, passed under President Barack Obama, to be delayed, while simultaneously directing the DOL to review the legal and cost implications of it. In late May, though, new labor secretary Alexander Acosta announced in a Wall Street Journal op-ed that the rule wouldn't be delayed past June 9, which set off of a transitional period for advisers to be compliant for a hard deadline on Jan. 1. That caught a lot of advisers off-guard. "This came out of left field a little bit," said Scott Matasar, a Cleveland attorney specializing in the retail securities industry. "I don 't think anyone was expecting the DOL to go live quite yet." The "heart" of the rule is in place now, Matasar said. Provisions that kicked in June 9 require advisers to provide "best interest" advice, charge no more than "reasonable compensation" and avoid misleading statements to clients, he explained. It's the documentation needed for compliance that will need to be in order come the new year. "A lot of managers didn't produce any policy procedures and contracts because they didn't want to prematurely produce them, then a delay happens and they have all those policies and procedures out there," said Dave Alison, a founding partner of Westlake's C2P Enterprises, a holding company that comprises registered investment adviser (RIA) Prosperity Capital Advisors, insurance wholesaler C2P Advisory Group and financial adviser training business Clarity 2 Prosperity. Alison said his company's RIA, partly because of its business model and the fact the firm is used as a model in their training division, was prepared for the June 9 rollout for all accounts they service whether at $10,000 or $10 million. There are no plans there to abandon clients with smaller accounts. But advisers in the C2P network are scrambling, Alison said. "Everyone is now in sort of a mad dash to figure out what they're doing," he said. "There's a lot of people who aren't very prepared." Large wirehouses had been adjusting their products and compensation structures well before that initial soft deadline was announced, though. UBS Wealth Management has told its U.S. advisers their compensation will change . Wells Fargo has announced limits on mutual fund share classes. And Ameriprise Financial Services Inc. recently told advisers it's eliminating some 1,500 funds that don't meet new due diligence standards. Bank of America Merrill Lynch has created the discount brokerage service Merrill Edge to service clients with smaller accounts, saving costs by effectively setting up a hotline for investors to call for advice instead of a dedicated a financial adviser. DOL-17-0281-K-000767 AO 836892 OSEC 000767 The ongoing review of the rule could result in some possible changes. But it's unlikely the whole rule will go away at this point . "At most, that analysis could have the effect of modifying or watering down that ultimate regulatory and paperwork burden on firms," Matasar said. And firms really have no incentive to go back to old methods after conforming to the rule anyway because of the time and cost being sunk into those efforts already. "If you're going to clean the house for a party," Matasar said, "you might as well throw it." Finding opportunity For those already acting as fiduciaries, the changes are less impactful - even for smaller offices, as long as they're affiliated with larger companies, like Leizman Wealth Management in Beachwood, an affiliate of Raymond James. Managing director Nancy Leizman said Raymond James is allowing individual advisers to still offer transactional accounts through what's called a best interest contract exemption (BICE).That 's similar to what C2P is allowing its advisers to do . "So we're not feeling any additional pressures," Leizman said. "We are operating in this mode regardless of any kind of legislative mandates. It's the people who have been operating in a very old -fashioned manner, old-fashioned brokers, who I think will have the most burden. It's going to force out some of the marginal players for sure." Alison wouldn 't put a specific dollar figure on it, but he indicated complying with the rule is a major expense. He said the firm has expanded its office to accommodate more staff in supervisory and processing roles they didn't need before. And that's all besides "hundreds of hours" spent on planning and preparing documents. "It's costing the big firms tens or hundreds of millions of dollars, and it's costing the midrange firms millions of dollars," he said. "It's just a side effect of more regulation." Not every firm will be able to handle that. And like Stratos, C2P sees itself in a good position to acquire smaller advisers and grow their share of the market as other advisers vacate an increasingly complicated industry . "What you're going to find is a lot of independent advisers are not going to want to deal with small accounts because it's too burdensome and too much liability," Alison said, noting it's up to individual offices how they'll deal with smaller accounts, which could mean raising account minimums. "This is going to help us grow quicker," he added. "We feel we are extremely well-poised to capitalize on a lot of growth because of the rule." Others see opportunity still in the chance to revamp their overall business models. Shane Bigelow, a Midwest managing director heading the Cleveland office for large New York-based asset manager AB Bernstein (one of the largest in Cleveland with close to $5 billion in local assets under management, according to Crain's research), said his firm has been "pivoting" to perfo rmance-based fees in recent months, a move partly driven by the shake-up the fiduciary rule is creating. With that, advisers get a cut when they outpe rform a given index, which incentivizes exceptional performance while meeting fiduciary requirements. Of course, AB Bernstein only works with high-net-worth clients, so investors on the smaller end of the spectrum aren't DOL-17-0281-K-000768 AO 836892 OSEC 000768 on their radar anyway. Yet, it's another example in which a firm is finding opportunity to ultimately benefit the firm, using the onset of the fiduciary rule to revamp its business model with a compelling market proposition. "You want to do right by the clients. That's what's at the heart of the DOL efforts," Bigelow said. "If that's the case, why not take that to the level where all intentions are directly aligned? You only do that if you wind up getting paid for _____ performance. And we_l_ike_ perform_ance-based_fees_because_that_will_put even _more_pressure_on_t_he _competition."·-·-·-·-·-·-·-· Not Responsive ·-·T-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-r DOL-17-0281-K-000769 AO 836892 OSEC 000769 Not Responsive DOL-17-0281-K-000770 AO 836892 OSEC 000770 Not Responsive DOL-17-0281-K-000771 AO 836892 OSEC 000771 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/21/2017 5:50:51 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=70a78d6db84949b68c79e655111e0f84-Allende, Pe]; Tiso, Daniel J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b86559200e4a839c8c2c4cfde14b5b-Tiso, Danie]; Mehrens, Nathan P OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=e5dcc8d9a3964c41bd883186fabdaf45-Mehrens, Na]; Harris, Ondray T - ETA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=a248b9a4349e4f 4 793bb20354050ecd5-H a rri s, 0 nd] Evening Clips 6/21 Evening News Clips: 6/21/17 ___ f_____________ J__________________________________________ f___________________________ l_ Not Responsive DOL-17-0281-K-000772 AO 836892 OSEC 000772 Not Responsive 6/21 The Hill Taking financial planning and fiduciary to The Hill Not Responsive DOL-17-0281-K-000773 AO 836892 OSEC 000773 Not Responsive DOL-17-0281-K-000774 AO 836892 OSEC 00077 4 Not Responsive DOL-17-0281-K-000775 AO 836892 OSEC 000775 Not Responsive DOL-17-0281-K-000776 AO 836892 OSEC 000776 Not Responsive DOL-17-0281-K-000777 AO 836892 OSEC 000777 Not Responsive DOL-17-0281-K-000778 AO 836892 OSEC 000778 Not Responsive DOL-17-0281-K-000779 AO 836892 OSEC 000779 Not Responsive DOL-17-0281-K-000780 AO 836892 OSEC 000780 Not Responsive · .;,:,:._-;.;,:7=7=7.;,-;;-.;,-;-;;,-r·,:;-.;,';,:;-.;:;;-=~,:,_7.;,-;,:,_7=--;;,-;;=7=--;-~•-i-•-~·-·-~-~~~·-✓ -·-~·-·-·-·-~·1.:.~.:.~.:.~.:.~.:.~.:.~:-~.:.~.:.-~·~·~-1-·-·-·-~~~·-~~·-·~-'-"'Y-~~~-·-~·-·~-~-~-·-·~·-·~~-·-·-·-~·-·-·~-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· Article 10 Taking financial ~lanning and fiduciarl'.'.to The Hill The Hill Shannon J. Pike 6/21 As President of the Financial Planning Association® (FPA®),and an ardent advocate for financial planners, coming back to D.C. for our 4th Annual Advocacy Day reminds me of how important it is to be here every year, whatever the political climate. I think it is no mistake that this is our largest group ever - with a new administration there are new faces to meet and new opportunities to discuss issues and bills that are vital to protecting and advancing our profession. There is no replacement for meeting members of Congress face-to-face with practitioners who are not lobbyists, and who can explain exactly how legislation would impact their practices and their clients' financial lives. Part of our strength as practitioners is that FPA is a compensation neutral, business model neutral association and our members are mostly Certified Financial Planner'M (CFP@)professionals. DOL-17-0281-K-000781 AO 836892 OSEC 000781 As a member of the Financial Planning Coalition, which includes the Certified Financial Planner Board of Standards and the National Association of Personal Financial Advisors, we supported and continue to support the Department of labor Conflict of Interest Final Rule. We do so because not only is it the right thing to do for our members, consumers, and our profession, but because CFP®professionals were fiduciaries to their financial planning clients before the word "fiduciary" became part of the political discussion. Whatever happens at the DOl or the Securities and Exchange Commission (SEC)with respect to a fiduciary standard, our CFP®professional members will continue to put their clients first. Again, it's the right thing to do - when our clients do well, we do well. It's consumers who will continue to lose if the DOl Rule gets repealed or delayed any further. It's consumers who will also lose if the SECconsiders a rule that would undercut the DOL Rule. There are three draft bills in Congress aimed squarely at eroding the rule that the DOl has carefully worked towards for close to seven years. We will be on the Hill this week with close to 80 FPA members from across the country to oppose H.R. 355, H.R. 2823, and S. 1321. With the change in administration the DOL has shifted from supporting and defending its Conflict of Interest Rule, to being directed to review, delay, and explore changing the rule. Although the June 9 deadline has not seen further delay, as evidenced by these bills, there is still a big push to halt its course. We, and others, believe this rule is here to stay, and as important, that the sea-change towards fiduciary is being recognized across the board. Take just two examples from very different sources. The first is a letter addressed to Labor Secretary Alexander Acosta signed by a bipartisan group of state Treasurers that cites the retirement crises in America brought on, in part, by the overwhelming change from defined benefit plans to defined contribution plans from 1975 to 2012. It urges the DOl to stay the course and protect American savers, and also lists major firms that have made themselves ready for compliance. The second example is in the form of a video from Merrill lynch's website that has different advisors and Merrill Lynch leadership talking about being, "excited about the new Department of labor Rule" and that "we are now leading the industry, putting a higher level of standard on the care we give to our clients." If the rule is here to stay, let's make sure everyone is prepared and feels better about the advice they give to clients. Why are we continuing to have this fight? let's stop spending resources to fight a fiduciary standard that protects all American savers, and focus on our clients, who only deserve the highest level of advice when it comes to their financial lives. Join us. Shannon Pike is president of the Financial Planning Association (FPA} ,onal Not Responsive ; ; ; ; ; ; ; he ~; ; ; ; ; ; ; !ipate !ty to ; ; ; ; ; ! '; ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·i DOL-17-0281-K-000782 AO 836892 OSEC 000782 Not Responsive DOL-17-0281-K-000783 AO 836892 OSEC 000783 Not Responsive DOL-17-0281-K-000784 AO 836892 OSEC 000784 Not Responsive DOL-17-0281-K-000785 AO 836892 OSEC 000785 Not Responsive DOL-17-0281-K-000786 AO 836892 OSEC 000786 Not Responsive DOL-17-0281-K-000787 AO 836892 OSEC 000787 Not Responsive DOL-17-0281-K-000788 AO 836892 OSEC 000788 Not Responsive DOL-17-0281-K-000789 AO 836892 OSEC 000789 Not Responsive DOL-17-0281-K-000790 AO 836892 OSEC 000790 Not Responsive DOL-17-0281-K-000791 AO 836892 OSEC 000791 Message From: Sent: To: CC: Subject: Lineberger, Timothy L - OSEC[/O=EXCHANGELABS/OU=EXCHANGEADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 6/27/2017 6:09:46 PM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=15dc286768d945dc9fcda83 7095195fd-RA Acosta] Hazelton, Jennifer - OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=8230e055ed214ebeba3584513464f3bl-Hazelton, J]; Smith, Gavin J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=bc69870591db49d58f90af9c13c4ec60-Smith, Gavi]; Rogers, Jillian B - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b9ff768266475f93c70c70f7aef9be-Rogers, Jil]; Palmer, Wayne D - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=525c2057d4a14206a99bf3aa8a80e004-Palmer, Way]; Mannix, Patrick M OSEC[/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=2fla4b386flb458892d4a3048ded008e-Mannix, Pat]; Gamble, Bennett B OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=97bd7645666947ffa4fdf78ffe13b871-Gamble, Ben]; Geale, Nicholas C. - SOL [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=da824alfa6d64alda373f567ae34ed06 -Geale, Nich]; Conway, Molly E - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=9302c410bf3a4ffab20e5c8c8eef5d4a-Conway, Mol]; Wimer, Andrew P - OPA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=32178c6bba4f4adebbbbed09a9451ca3-Wimer, Andr]; Ray, Paul J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=23d2cbe7076542ad9fc576e9aca72257-Ray, Paul J]; Allende, Pedro M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=70a78d6db84949b68c79e655111e0f84-Allende, Pe]; Tiso, Daniel J - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/en=03b86559200e4a839c8c2c4cfde14b5b-Tiso, Danie]; Mehrens, Nathan P - ASP [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=e5dcc8d9a3964c41bd883186fabdaf45-Mehrens, Na]; Harris, Ondray T - ETA [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=a248b9a4349e4f4793bb20354050ecd5-Harris, Ond]; Bolen, Derrick A - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/en=Recipients/en=7fd1494367144f20a28aff2330ad876c-Bolen, Derr]; Kopley, Russell M - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ en=Recip ients/ en=b3888 ld b99b14a458f3ffa6fb6d4007 4-Kopl ey, Rus] Evening Clips 6/27 Evening News Clips: 6/27/17 ·-·-· ·-·r _(.:.,.-,, ·-·-·-·-·-·-·-·-·-·-· ...'l'"lll,-'-·-·-·-·-·.l·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ___... ___,._•-·-·-·..R':>·"-"'.& . .&.a._.,_,_ ______ ,.1.._. .....,. ___,. • ·-·-·-·-·-•-•-"•-~--- •·-·-·---~---·-·-·-·-·-·-·£'"1t..·-·-·-·-·-·-·-·-·-·-·-··-·-·-· Not Responsive DOL-17-0281-K-000792 AO 836892 OSEC 000792 Not Responsive -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ·-·; Not Responsive ~--~---------~------------~·-·-·-·-·-·-·i 6/27 Investme nt News Labor 's Alexander Acosta and SEC'sJay Clayton te ll law makers they w ill work togethe r on fi ducia ry rul e Not Responsive DOL-17-0281-K-000793 AO 836892 OSEC 000793 ; ; ; ; ; ; ; ; ; ; Not Responsive DOL-17-0281-K-000794 AO 836892 OSEC 000794 Not Responsive DOL-17-0281-K-000795 AO 836892 OSEC 000795 Not Responsive DOL-17-0281-K-000796 AO 836892 OSEC 000796 Not Responsive DOL-17-0281-K-000797 AO 836892 OSEC 000797 Not Responsive DOL-17-0281-K-000798 AO 836892 OSEC 000798 Not Responsive DOL-17-0281-K-000799 AO 836892 OSEC 000799 Not Responsive DOL-17-0281-K-000800 AO 836892 OSEC 000800 Not Responsive DOL-17-0281-K-000801 AO 836892 OSEC 000801 Not Responsive DOL-17-0281-K-000802 AO 836892 OSEC 000802 Not Responsive DOL-17-0281-K-000803 AO 836892 OSEC 000803 Not Responsive DOL-17-0281-K-000804 AO 836892 OSEC 000804 Not Responsive DOL-17-0281-K-000805 AO 836892 OSEC 000805 Not Responsive DOL-17-0281-K-000806 AO 836892 OSEC 000806 Not Responsive DOL-17-0281-K-000807 AO 836892 OSEC 000807 Not Responsive .,., ··-· i i i i i i i' i '·- ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ~ ...i.._.i. Not Responsive ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--·-·-·-·- Article 21 Labor's Alexander Acosta and SEC'sJay Clayton tell lawmakers they will work together on fiduciary rule Investment News Mark Schoeff Jr. 6/27 DOL-17-0281-K-000808 AO 836892 OSEC 000808 Labor Secretary Alexander Acosta and Securities and Exchange Commission Chairman Jay Clayton told lawmakers on Tuesday that their agencies would work together on investment advice regulation. In separate appearances before Senate panels, the two regulators stressed the cooperation that Republican legislators and opponents of the DOL fiduciary rule are demanding. Supporters of the rule, which was finalized last year by the Obama administration, maintain that the DOL did consult with the SECwhile it was written. "The SEChas important expertise and they need to be part of the conversation," Mr. Acosta said to the Senate Appropriations subcommittee on labor and health and human services. "It's my hope that as the SECalso receives a full complement of commissioners that the SECwill continue to work with the Department of Labor on this issue." Mr. Clayton was sworn in as SECchairman on May 4 but the normally five-person commission still has two vacancies. The Trump administration has not yet announced nominees. Mr. Clayton said that the DOL rule, which was partially implemented earlier this month but is undergoing a review that may result in changes, would influence any advice regulation that the SECmight decide to pursue. Earlier this month, Mr. Clayton released a request for comment about fiduciary duty. "It's not separate," Mr. Clayton said to the Senate Appropriations subcommittee on financial services. "It's my intent as chairman to try and move forward and effectively deal with that in a way that is coordinated so that our Main Street investors have access to investment advice and access to investment products ... [and] at the same time very much fulfilling our investor-protection mission." His language echoed that of financial industry opponents of the DOL rule, which would require financial advisers to act in the best interests of their clients in retirement accounts. The measure would mostly affect brokers, who currently operate on a suitability standard when selling investment products. Investment advisers must already meet a fiduciary standard. Critics say that the DOL measure is too complex and costly and would force brokers to abandon clients with modest accounts. Supporters of the rule say that it is necessary to reduce brokers' conflicts of interest that result in the sale of inappropriate high-fee investments that erode savings. The DOL's request for comment on the rule is undergoing a review at the Office of Management and Budget. When 0MB approves the request, it will be released. Not Responsive DOL-17-0281-K-000809 AO 836892 OSEC 000809 Not Responsive DOL-17-0281-K-000810 AO 836892 OSEC 000810 Not Responsive DOL-17-0281-K-000811 AO 836892 OSEC 000811 Not Responsive DOL-17-0281-K-000812 AO 836892 OSEC 000812 Not Responsive DOL-17-0281-K-000813 AO 836892 OSEC 000813 Message From: Lineberger, Timothy L - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] Sent: Subject: 6/30/2017 5:40:25 PM RE: Evening Clips 6/30 Chamber of Commerce: We need more time on RFI Politico, Marianne Le Vine, 06/30/2017 05: 10 PM EDT The U.S. Chamber of Commerce requested today that the Labor Department extend the comment period for its request for information on the fiduciary rule. DOL issued its request for information on Thursday. The rule requires that broker dealers consider only their client's best interest - and not commissions or fees -when providing retirement advice. Part of the rule took effect on June 9. The request for information gives the public 15 days to comment on whether to delay the Jan. l date on which the rest of the rule is to take effect. The 15-day comment period will commence in the next few days, when the rule is published in the Federal Register. In a letter, David Hirschmann, president and CEO of the Chamber's Center for Capital Markets Competitiveness, and Randy Johnson, senior vice president for labor, immigration, and employee benefits, requested that the DOL extend the comment period to 60 days. "The current rule has now been in effect for only 20 days, and its full consequences - intended and unintended - are not immediately apparent," they wrote. "The requested comment period extension will allow the concerned public necessary time to observe the impacts of the rule more fully." To vie1-vonline: https://www.politicopro.com/financial-services/whiteboard/2017/06/chamber-of-commerce-we-need-moretime-on-rfi-090018 ····Tim Tim Lineberger Department of Labor l_________ (b)(6)-·-·-·-·-· i From: Lineberger,Timothy L - OSEC Sent: Friday, June 30, 2017 5:07 PM Subject: EveningClips 6/30 0::::::::::::::::::::, 1·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· ; Evening Ne~ 6/30 6/30 Not Responsive 6/30 DOL-17-0281-K-000814 AO 836892 OSEC 000814 Not Responsive DOL-17-0281-K-000815 AO 836892 OSEC 000815 Not Responsive DOL-17-0281-K-000816 AO 836892 OSEC 000816 Not Responsive DOL-17-0281-K-000817 AO 836892 OSEC 000817 Not Responsive DOL-17-0281-K-000818 AO 836892 OSEC 000818 Not Responsive DOL-17-0281-K-000819 AO 836892 OSEC 000819 Not Responsive DOL-17-0281-K-000820 AO 836892 OSEC 000820 Not Responsive DOL-17-0281-K-000821 AO 836892 OSEC 000821 Not Responsive DOL-17-0281-K-000822 AO 836892 OSEC 000822 Not Responsive DOL-17-0281-K-000823 AO 836892 OSEC 000823 Not Responsive DOL-17-0281-K-000824 AO 836892 OSEC 000824 Not Responsive DOL-17-0281-K-000825 AO 836892 OSEC 000825 Not Responsive DOL-17-0281-K-000826 AO 836892 OSEC 000826 Not Responsive DOL-17-0281-K-000827 AO 836892 OSEC 000827 Not Responsive DOL-17-0281-K-000828 AO 836892 OSEC 000828 Not Responsive DOL-17-0281-K-000829 AO 836892 OSEC 000829 Not Responsive DOL-17-0281-K-000830 AO 836892 OSEC 000830 L__________ (~J1!5J __________ _: DOL-17-0281-K-000831 AO 836892 OSEC 000831 Message :·-·-·-·-·-·-·-·-·-·-·-·-iiiiisi·-·-·-·-·-·-·-·-·-·-·-·-·: From: Christopher A. lacovel la Sent: 8/2/2017 2:44:35 PM Acosta, Alexander - OSEC [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en =c6f0c56 la2b441e 198b 7 cbf5010f7214-Acosta, Thank you To: Subject: Ale] Mr. Secretary, Thank you very much for meeting with us last week. We welcome your engagement and we look forward to working with you on finding a workable solution on the fiduciary rule. Thank you, Chris Christopher A. lacovella Chief Executive Officer Equity Dealers of America 1455 Pennsylvania Ave. NW Suite 400 Washington, D.C. 20004 Direct- - :-·-·-·-·-·l"bilai-·-·-·-·-·: Ce11-- :_ __________ tbJ/6) ___________ : l_________________________ (b)(6)-·-·-·-·-·-·-·-·-·-·-·-·-j DOL-17-0281-K-000832 AO 836892 OSEC 000832 Message From: Sent: Barry, Rachel! (b)(6) ! 8/7/2017 s :47TTrM·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·" To: ~:~~~~ ~:~:~ ~:["-·-·-·-·-·-·-·-·-·-·-{bY(E!i"f ·-·-·-·-·-·-·-·-·-·--rosser,Ni co Ie [ ____________________ J~){.~)___ ___________________ j CC: Subject: Attachments: BlackRock Comment Letters to Doland SECon Standards of Conduct for Investment Advisors and Broker Dealers dol-fi d uci ary-ru Ie-prohi bited-tra nsacti on-exemption s-rfi-080717. pdf; sec-standards-of-co nd uct-investment-advi sorsbroker-dea le rs-080717 .pdf A Message On Behalf of the BlackRock Global Public Policy Group Department of Labor (Dol) Secretary Acosta and Securities and Exchange Commission (SEC) Chair Clayton have indicated an interest in working together on establishing harmonized standards of conduct for investment advisors and broker dealers . Today , BlackRock filed a comment letter in response to the Dol's request for information (RFI) regarding the Fiduciary Rule and Prohibited Transaction Exemptions and a comment letter in response to the SEC's request for public comments on standards of conduct for investment advisors and broker dealers . As outlined in these letters, we appreciate the dual commitment of the Dol and the SEC to work together in coordinating standards of conduct. A uniform best interest standard adopted by the SEC applicable to all types of retail accounts would improve investor confidence, promote efficiencies, and reduce confusion and unnecessary complexity. We recommend that a best interest standard should promote investor choice in account type, advance outcome oriented investing, and embrace the rise of digital advice and regulate such advice appropriately . We recommend that the Dol defer to the SEC on the regulation of brokerage accounts to reduce confusion and the potential for different standards. Rather than duplicating these efforts, we encourage the Dol to identify and address any remaining gaps specific to retirement assets . In response to the Dol RFI, we have identified a number of changes to the current Dol Fiduciary Rule and the Prohibited Transaction Exemptions that we view as necessary to advance the goals of enhancing confidence in the markets, promoting investor choice, encouraging saving, and facilitating outcome-oriented investing. We recommend tailoring the definition of investment advice, improving the sophisticated independent fiduciary exception, and limiting additional conditions of the Best Interest Contract Exemption. We look forward to participating in this dialogue with both the Dol and the SEC as it progresses. This message may contain information that is confidential or privileged. If you are not the intended recipient, please advise the sender immediately and delete this message. See http://www.blackrock.com/corporate/en~ us/compliance/email~disclaimers for further information. Please refer to http://www.blackrock.corn/co1porate/en~ us/compliance/prhtal?f~policy for more information about BlackRock's Privacy Policy. For a list of BlackRock's office addresses worldwide, see http://vv'Nvv.blackrock.corn/corporate/en~us!abou>us!contacts~ locations. © 2017 BlackRock, Inc. All rights reserved. DOL-17-0281-K-000833 AO 836892 OSEC 000833 Message From: Sent: To: Subject: Lineberger, Timothy L - OSEC [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=EA51B4207E234B57837A72E6592289A7-LINEBERGER,] 8/14/2017 9:03:01 AM RA Acosta [/o=Exchangelabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/ cn=Recip ients/ en =15dc286768d945dc9fcda83 7095195fd-RA Acosta] RE: Morning Clips 8/14 From 8/12 morning clips, and will print for the book: Article 7 Who Is Winning With the Fiduciary Rule? Wall Street Wall Street Journal Lisa Beilfuss 8/11 The brokerage business fiercely fought the new retirement advice rule. But so far for Wall Street, it has been a gift. The rule requires brokers to act in the best interests of retirement savers, rather than sell products that are merely suitable but could make brokers more money. Financial firms decried the restriction, which began to take effect in June, as limiting consumer choice while raising their compliance costs and potential liability. But adherence is proving a positive. Firms are pushing customers toward accounts that charge an annual fee on their assets, rather than commissions which can violate the rule, and such fee-based accounts have long been more lucrative for the industry. In earnings calls, executives are citing the Department of Labor rule, known varyingly as the DOL or fiduciary rule, as a boon. "Primarily because of DOL" and market appreciation, assets are growing in fee-based accounts, said Stifel Financial Corp. SF 0.40% Chief Executive Ronald Kruszewski, on a call in July. In an interview, he said such accounts can be twice as costly for clients. Morningstar Inc. has said $3 trillion in tax-advantaged retirement savings are at stake, but some firms say even more is in play, as policies and marketing filter to nonretirement accounts. For some consumers, a fee-based account could make economic sense. Such accounts can also come with more services, and they theoretically align a broker's interest with that of the client. Some customers are negotiating discounts on the fees they pay, and some are moving to lower-cost firms, data suggests and industry executives say. "Whether it's in clients' best interest is unclear," said Steven Chubak, an analyst at Nomura lnstinet. But the fiduciary rule is "incentivizing firms to accelerate conversions" to fees from commissions, he said, and "certainly the amount charged on a fee-based account versus a [commission-based] brokerage account is higher." The push is speeding up an industry trend toward fees, which offer more predictable revenue than commission-based accounts. "They are crying crocodile tears," said Phyllis Borzi, a former Obama administration official who was an architect of the rule, referring to complaints from financial firms on the rule. That administration had said conflicted advice was costing individuals $17 billion a year and 1% in annual returns, figures that critics dispute. The full effect of the rule remains to be seen. It has only partially gone into effect, with the Trump administration considering significant changes, including adjustments designed to lower compliance costs. Earlier this week, the Labor Department proposed delaying the rule's compliance deadline by 18 months, a move that experts say suggests revisions are in the offing. Even some benefiting from it still fault it, including Mr. Kruszewski from Stifel, whose business is largely based on commissions and who has said the rule limits choice. DOL-17-0281-K-000834 AO 836892 OSEC 000834 For now, the rule is setting money in motion. Bank of America Corp.'s Merrill lynch has embraced the rule, even running an ad campaign around the idea of fiduciary advice. The firm, which for years has promoted fee-based accounts, last year gave its more than 14,000 brokers more flexibility to cut fees for clients moved onto its advisory platform without a reduction in their own pay. A big investment in adviser technology several years ago has aided the process by making it easier for advisers to convert brokerage accounts to fee-generating advisory accounts. At Bank of America's global wealth unit, which includes Merrill lynch, fee-based assets rose 19% from a year earlier to $991 billion in the second quarter, or to 38% of client assets. More than two-thirds of Merrill's advisers now have at least half of their client assets under a fee-based relationship, the firm said. The firm is also moving some clients to its online, commission-based "Merrill Edge" platform. Morgan Stanley, meanwhile, has taken a different tack. Unlike Merrill, which has largely eliminated commissions in retirement accounts, Morgan Stanley has lowered commission costs to aid compliance with the regulation's "reasonable compensation" standard. It, too, is rolling out a new computer-driven "robo" advisory tool. For Morgan Stanley, fee-based assets grew 17% from a year earlier to $962 billion in the quarter, representing 43% of overall money in the wealth unit. On Morgan Stanley's earnings call in July, finance chief Jonathan Pruzan credited the rule in part for gains in fee-based assets. "The Department of labor's fiduciary rule has contributed to these fee-based flows," he said, and "revenues continue to grow with fee-based assets." Observers also note that market performance has helped drive assets higher, regardless of account type. Discount brokers, which traditionally have catered to investors seeking to manage their own investment accounts and pay per transaction, also may gain business. TD Ameritrade Holding Corp. said net new client assets in the latest period climbed to a record $22 billion from $13.6 billion a year ago. "The DOL fiduciary rule is driving a lot of momentum," said Chief Executive Tim Hockey. At Charles Schwab & Co., clients in the first half of the year brought roughly $2 to Schwab for every $1 that they moved from Schwab to a competitor, including traditional brokerage firms, the company has said. In dollar terms, that is about an 86% improvement from a year earlier. In the latest quarter, Schwab's new retail brokerage accounts climbed 36% from a year earlier. The fiduciary rule also is supporting the shift to lower-cost index funds that seek to match market moves instead of beat them, observers say, due to the rule's requirement that brokers justify an investment's costs. Laurence Fink, chief executive of indexing giant BlackRock Inc., on the most-recent earnings call attributed "accelerated" flows partly to the fiduciary rule. Other changes stemming from the fiduciary rule could hurt over the longer term. Aside from compliance costs and increased potential liability, products such as higher-cost mutual funds face pressure from lower-cost passively managed funds, said Devin Ryan, a JM P Securities analyst. The move away from such products could bring down the profitability of fee-based accounts over time, he said. For now, though, the growth in these accounts have been another positive for Wall Street's advisory businesses. "The wealth-management business is almost like a yield stock," James Gorman, Morgan Stanley's chief executive, said on the firm's latest earnings call. "So you can imagine the dividend coming out of wealth-management earnings." DOL-17-0281-K-000835 AO 836892 OSEC 000835 ····Tim Tim Lineberger Department of Labor !.__________ ( b)( 6) ___________ i From: RA Acosta Sent: Monday, August 14, 2017 8:58 AM To: Lineberger,Timothy L - OSEC Subject: Re: Morning Clips 8/14 Dou have this one? Can I put in book? WALL STREET WINS WITH FIDUCIARY RULE: Although financial services groups have fought to kill the Obama administration's fiduciary rule, Wall Street is benefiting from it, Lisa Beilfuss reports in the Wall Street Journal. "Firms are pushing customers toward accounts that charge an annual fee on their assets, rather than commissions which can violate the rule, and such fee-based accounts have long been more lucrative for the industry. In earnings calls, executives are citing the Department of Labor rule ... as a boon." More here. Not Responsive DOL-17-0281-K-000836 AO 836892 OSEC 000836 Not Responsive DOL-17-0281-K-000837 AO 836892 OSEC 000837 Not Responsive DOL-17-0281-K-000838 AO 836892 OSEC 000838 Not Responsive DOL-17-0281-K-000839 AO 836892 OSEC 000839 Not Responsive DOL-17-0281-K-000840 AO 836892 OSEC 000840 Not Responsive DOL-17-0281-K-000841 AO 836892 OSEC 000841 Not Responsive DOL-17-0281-K-000842 AO 836892 OSEC 000842 Not Responsive DOL-17-0281-K-000843 AO 836892 OSEC 000843 Not Responsive DOL-17-0281-K-000844 AO 836892 OSEC 000844 Not Responsive DOL-17-0281-K-000845 AO 836892 OSEC 000845 Not Responsive DOL-17-0281-K-000846 AO 836892 OSEC 000846 Not Responsive DOL-17-0281-K-000847 AO 836892 OSEC 00084 7 U.S. Department of Labor Office of the Solicitor Washington, D.C. 20210 DEC18 2019 Austin R. Evers American Oversight 1030 15th Street, NW, Suite B255 Washington, DC 20005 Dear Mr. Evers: This correspondence is in further response to your Freedom of Information Act (FOIA) request dated July 21, 2017 (tracking number 836892) wherein you requested: 1. All calendar entries for any meetings pertaining to the development, implementation, consideration, evaluation, reconsideration , or re-evaluation of the "Fiduciary Rul e" or "C onflict oflnterest Rule ," 29 C.F.R. ? 2510.3-21. For calendar entries created in Outlook or similar programs , the documents should be produc ed in "me mo " form to include all invitees, any notes , and all attachments. Please do not limit your search to Outlook calendars --we request the production of any calendar--paper or electronic , whether on government-issued or per sonal device--u sed to track or coordinate how these individuals allocate their time on agency busines ses . 2. All meeting agendas and list of attendees for any meetings held pertaining to the development , implement ation, consideration, evaluation, reconsideration , or reevaluation of the Conflict of Interest Rule. 3. All lists of attend ees for any meetings held pertaining to the development, implementation , consideration , evaluation, reconsideration , or re-e valuation of the Conflict of Interest Rule. 4. Any materials distributed by DOL or provided by non -DOL attendees at any meetin gs attended by persons not employed by the executive branch and held pertaining to the development, implementation, consideration, evaluation, reconsideration, or reevaluation of the Conflict of Interest Rule. 5. All e-mails reflecting requests for meeting s with non-DOL parties to discuss the development, implementation, consideration, evaluation, reconsideration, or reevaluation of the Conflict of Inter est Rule. 6. Copies of all correspondence pertaining to the development, implementation , consideration, eva luation , reconsideration, or re-evaluation of the Conflict of Interest Rule. This include s any official correspondence to or from DOL, including correspondence to or from other federal agencies, as well as correspon dence with or by any non-governmental person or entity. As you know, your request initiall y was assigned to multiple DOL agency components for processing. In accordance with our FOIA regulation s published at 29 C.F.R. ? 70.20, when it is determ ined that records responsive to a request may be locat ed in multiple components of DOL , the Office of Information Services (OIS), within the Office of the Solicitor , may coordinate a DOL-wide response. We are continuing to use this process. U.S. Department of Labor Office of the Solicitor Washington, D.C. 20210 DEC18 2019 Austin R. Evers American Oversight 1030 15th Street, NW, Suite B255 Washington, DC 20005 Dear Mr. Evers: This correspondence is in further response to your Freedom of Information Act (FOIA) request dated July 21, 2017 (tracking number 836892) wherein you requested: 1. All calendar entries for any meetings pertaining to the development, implementation, consideration, evaluation, reconsideration , or re-evaluation of the "Fiduciary Rul e" or "C onflict oflnterest Rule ," 29 C.F.R. ? 2510.3-21. For calendar entries created in Outlook or similar programs , the documents should be produc ed in "me mo " form to include all invitees, any notes , and all attachments. Please do not limit your search to Outlook calendars --we request the production of any calendar--paper or electronic , whether on government-issued or per sonal device--u sed to track or coordinate how these individuals allocate their time on agency busines ses . 2. All meeting agendas and list of attendees for any meetings held pertaining to the development , implement ation, consideration, evaluation, reconsideration , or reevaluation of the Conflict of Interest Rule. 3. All lists of attend ees for any meetings held pertaining to the development, implementation , consideration , evaluation, reconsideration , or re-e valuation of the Conflict of Interest Rule. 4. Any materials distributed by DOL or provided by non -DOL attendees at any meetin gs attended by persons not employed by the executive branch and held pertaining to the development, implementation, consideration, evaluation, reconsideration, or reevaluation of the Conflict of Interest Rule. 5. All e-mails reflecting requests for meeting s with non-DOL parties to discuss the development, implementation, consideration, evaluation, reconsideration, or reevaluation of the Conflict of Inter est Rule. 6. Copies of all correspondence pertaining to the development, implementation , consideration, eva luation , reconsideration, or re-evaluation of the Conflict of Interest Rule. This include s any official correspondence to or from DOL, including correspondence to or from other federal agencies, as well as correspon dence with or by any non-governmental person or entity. As you know, your request initiall y was assigned to multiple DOL agency components for processing. In accordance with our FOIA regulation s published at 29 C.F.R. ? 70.20, when it is determ ined that records responsive to a request may be locat ed in multiple components of DOL , the Office of Information Services (OIS), within the Office of the Solicitor , may coordinate a DOL-wide response. We are continuing to use this process. In the Joint Status Report (JSR) filed on November 4, 2019, the parties agreed to conduct searches of the emails of Secretary R. Alexander Acosta, Molly Conway, Wayne Palmer, and Nate Mehrens. Furthermore, the parties agreed to prioritize Secretary Acosta's emails , and to review all of the emails without attachments. The parties also agreed that the Department of Labor would review 200 documents per month, with an initial release date of November 20, 2019 . Enclosed, in this 2 nd production are the emails of Wayne Palmer. We are releasing 117 pages in the following manner (note that some pages may include redactions under more than one exemption): o o o o 11 pages are being released in full, and 12 pages have been redacted in pmi as non-responsive, and 38 pages have been redacted in part pursuant to 5 U.S .C. ? 522 (b)(5), which pennits the withholding of records reflecting deliberative materials such as advisory opinions and recommendations, and 77 pages have been redacted in pmi pursuant to 5 U.S.C. ? 522 (b)(6), which permits the withholding of personnel, medical and similar files when disclosure of such info1mation would constitute a clearly unwarranted invasion of personal privacy. Questions regarding this response can be addressed to Shm.on Hudson, SOL FOIA Coordinator, by phone at 202-693-5406 or by email at hudson.sharon @dol.gov . If you need any further assistance or would like to discuss any aspect of your request, please do not hesitate to contact the DOL FOIA Public Liaison, Thomas Hicks, at 202-693-5427 or by email at hicks .thomas @dol.gov . Alternatively, you may contact the Office of Government Information Services (OGIS) to inquire about the mediation services they offer. The contact information for OGIS is as follows: Office of Government Information Services, National Archives and Records Administration, 8601 Adelphi Road, College Pm.k, MD 20740-6001. You can also reach that office by email at ogis@nm.a.gov , by phone at 202-741-5770, by fax at 202-741-5769, or by calling toll -free at 1877-6 84-6448. Although this matter is currently in litigation, you retain the right to file an administrative appeal. You may file an appeal of this decision with the Solicitor of Labor within 90 days from the date of this letter. The appeal must state in writing the grounds for the appeal, and it may include any supporting statements or arguments, but such statements are not required. In order to facilitate processing of the appeal , please include your mailing address and daytime telephone number, as well as a copy of the initial request and copy of this letter. The envelope and appeal letter should be clearly marked "Freedom oflnfo1mation Act Appeal." Any amendment to the appeal must be made in writing and received prior to a decision . The appeal should be addressed to the Solicitor of Labor, Division of Management and Administrative Legal Services, U.S . Department of Labor, 200 Constitution Avenue, N.W., Room N -2428, Washington, D.C. 20210 . Appeals may In the Joint Status Report (JSR) filed on November 4, 2019, the parties agreed to conduct searches of the emails of Secretary R. Alexander Acosta, Molly Conway, Wayne Palmer, and Nate Mehrens. Furthermore, the parties agreed to prioritize Secretary Acosta's emails , and to review all of the emails without attachments. The parties also agreed that the Department of Labor would review 200 documents per month, with an initial release date of November 20, 2019 . Enclosed, in this 2 nd production are the emails of Wayne Palmer. We are releasing 117 pages in the following manner (note that some pages may include redactions under more than one exemption): o o o o 11 pages are being released in full, and 12 pages have been redacted in pmi as non-responsive, and 38 pages have been redacted in part pursuant to 5 U.S .C. ? 522 (b)(5), which pennits the withholding of records reflecting deliberative materials such as advisory opinions and recommendations, and 77 pages have been redacted in pmi pursuant to 5 U.S.C. ? 522 (b)(6), which permits the withholding of personnel, medical and similar files when disclosure of such info1mation would constitute a clearly unwarranted invasion of personal privacy. Questions regarding this response can be addressed to Shm.on Hudson, SOL FOIA Coordinator, by phone at 202-693-5406 or by email at hudson.sharon @dol.gov . If you need any further assistance or would like to discuss any aspect of your request, please do not hesitate to contact the DOL FOIA Public Liaison, Thomas Hicks, at 202-693-5427 or by email at hicks .thomas @dol.gov . Alternatively, you may contact the Office of Government Information Services (OGIS) to inquire about the mediation services they offer. The contact information for OGIS is as follows: Office of Government Information Services, National Archives and Records Administration, 8601 Adelphi Road, College Pm.k, MD 20740-6001. You can also reach that office by email at ogis@nm.a.gov , by phone at 202-741-5770, by fax at 202-741-5769, or by calling toll -free at 1877-6 84-6448. Although this matter is currently in litigation, you retain the right to file an administrative appeal. You may file an appeal of this decision with the Solicitor of Labor within 90 days from the date of this letter. The appeal must state in writing the grounds for the appeal, and it may include any supporting statements or arguments, but such statements are not required. In order to facilitate processing of the appeal , please include your mailing address and daytime telephone number, as well as a copy of the initial request and copy of this letter. The envelope and appeal letter should be clearly marked "Freedom oflnfo1mation Act Appeal." Any amendment to the appeal must be made in writing and received prior to a decision . The appeal should be addressed to the Solicitor of Labor, Division of Management and Administrative Legal Services, U.S . Department of Labor, 200 Constitution Avenue, N.W., Room N -2428, Washington, D.C. 20210 . Appeals may also be submitted via email at foiaappeal @dol.gov . FOIA appeals submitted to any other email address will not be accepted . t nley E. Keen eputy Solicitor for National Operations Enclosures also be submitted via email at foiaappeal @dol.gov . FOIA appeals submitted to any other email address will not be accepted . t nley E. Keen eputy Solicitor for National Operations Enclosures From: To: Sent: Subject: Palmer, Wayne D - OSEC Rogers, Jillian B - OSEC; Lineberger, Timothy L - OSEC 1/31/2017 6:13:56 PM RE: Think Advisor: Trump to Direct DOL to Delay Fiduciary Rule: Sources A bsolutely. From: Rogers, Jillian B - OSEC Sent: Tuesday, January 31, 2017 6:13 PM To: Lineberger, Timothy L - OSEC; Palmer, Wayne D - OSEC Subject: RE: Think Advisor: Trump to Direct DOL to Delay Fiduciary Rule: Sources We're directing all Os to WH for now. Wayne- of you get any info let us know From: Lineberger, Timothy L - OSEC Sent: Tuesday, January 31, 2017 6:11 PM To: Rogers, Jillian B - OSEC; Palmer, Wayne D - OSEC Subject: Think Advisor: Trump to Direct DOL to Delay Fiduciary Rule: Sources FYI Trump to Direct DOL to Delay Fiduciary Rule: Sources --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] DOL-17-0281-L-000001 AO 836892 OSEC 000848 From: To: Sent: Subject: Palmer, Wayne D - OSEC Rogers, Jillian B - OSEC; Lineberger, Timothy L - OSEC 1/31/2017 6:13:56 PM RE: Think Advisor: Trump to Direct DOL to Delay Fiduciary Rule: Sources A bsolutely. From: Rogers, Jillian B - OSEC Sent: Tuesday, January 31, 2017 6:13 PM To: Lineberger, Timothy L - OSEC; Palmer, Wayne D - OSEC Subject: RE: Think Advisor: Trump to Direct DOL to Delay Fiduciary Rule: Sources We're directing all Os to WH for now. Wayne- of you get any info let us know From: Lineberger, Timothy L - OSEC Sent: Tuesday, January 31, 2017 6:11 PM To: Rogers, Jillian B - OSEC; Palmer, Wayne D - OSEC Subject: Think Advisor: Trump to Direct DOL to Delay Fiduciary Rule: Sources FYI Trump to Direct DOL to Delay Fiduciary Rule: Sources --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] DOL-17-0281-L-000001 AO 836892 OSEC 000848 From: To: Sent: Subject: Attachments: L.______ :.-.-.-.-.-.(b )(6) .r.-.r.-.-.-.-.-.-. !i PalniEfr~.wayne.n-:-.osEc 2/1/2017 5:30:34 PM Follow-up SIFMA 100-day lnitiatives.pdf Hey WayneSorry for the delay in getting my contact info to you. It was great to catch up with you last week and learn of your latest adventure. My contact info is below. I have also attached some info on the fiduciary rule. It is from a SIFMA summary and well explained. Pages 3-4 cover it. We understand that the WH has drafted delay language and its release is imminent, but we don't know for sure. I'd love to hear anything you hear if you are in a position to share it. Thanks, Wayne. John John Savercool Managing Director Head, US office of Public Policy UBS Americas 1501 K Street, NW, Suite 1000 Washington, DC 20005 l__________ _{bl(6L_ _______ _: DOL-17-0281-L-000002 AO 836892 OSEC 000849 From: To: Sent: Subject: Attachments: L.______ :.-.-.-.-.-.(b )(6) .r.-.r.-.-.-.-.-.-. !i PalniEfr~.wayne.n-:-.osEc 2/1/2017 5:30:34 PM Follow-up SIFMA 100-day lnitiatives.pdf Hey WayneSorry for the delay in getting my contact info to you. It was great to catch up with you last week and learn of your latest adventure. My contact info is below. I have also attached some info on the fiduciary rule. It is from a SIFMA summary and well explained. Pages 3-4 cover it. We understand that the WH has drafted delay language and its release is imminent, but we don't know for sure. I'd love to hear anything you hear if you are in a position to share it. Thanks, Wayne. John John Savercool Managing Director Head, US office of Public Policy UBS Americas 1501 K Street, NW, Suite 1000 Washington, DC 20005 l__________ _{bl(6L_ _______ _: DOL-17-0281-L-000002 AO 836892 OSEC 000849 Palmer,WayneD - OSEC From: To: Sent: Subject: Attachments: L__.-.-...................(b )(6) o..o..o..o..o..o..o..o..o..o.. i._.! 2/1/2017 6:46:53 PM RE: Follow-up 20170201_180511jpg No worries, John, I've been a little busy over here ... Attached is what I promised yo u-I knew I'd find it. I still had yo u in my contacts after all these years-i ncluding a fax number! . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-) From: [-.-.-.-.~.-.-.-.-.-Jbl(SL._._._._._._._._._.i [ .-.-....._...., ,.._,._ .-.-.-.(b)(S).-.-.-.-.-.-.-.-.-.-.-.-.-.-. i ! Sent: Wednesday~.-Feffrffiffy.-01;..:mITS":3T"PM.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Palmer,Wayne D - OSEC Subject: Follow-up Hey WayneSorry for the delay in getting my contact info to you. It was great to catch up with you last week and learn of your latest adventure. My contact info is below. I have also attached some info on the fiduciary rule. It is from a SIFMA summary and well explained. Pages 3-4 cover it. We understand that the WH has drafted delay language and its release is imminent, but we don't know for sure. I'd love to hear anything you hear if you are in a position to share it. Thanks, Wayne. John John Savercool Managing Director Head, US office of Public Policy UBS Americas 1501 K Street, NW, Suite 1000 Washington, DC 20005 l_.-.-.-.-._{bl(6L._._._.__: b) (6)_.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ! l.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ( DOL-17-0281-L-000003 AO 836892 OSEC 000850 Palmer,WayneD - OSEC From: To: Sent: Subject: Attachments: L__.-.-...................(b )(6) o..o..o..o..o..o..o..o..o..o.. i._.! 2/1/2017 6:46:53 PM RE: Follow-up 20170201_180511jpg No worries, John, I've been a little busy over here ... Attached is what I promised yo u-I knew I'd find it. I still had yo u in my contacts after all these years-i ncluding a fax number! . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-) From: [-.-.-.-.~.-.-.-.-.-Jbl(SL._._._._._._._._._.i [ .-.-....._...., ,.._,._ .-.-.-.(b)(S).-.-.-.-.-.-.-.-.-.-.-.-.-.-. i ! Sent: Wednesday~.-Feffrffiffy.-01;..:mITS":3T"PM.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Palmer,Wayne D - OSEC Subject: Follow-up Hey WayneSorry for the delay in getting my contact info to you. It was great to catch up with you last week and learn of your latest adventure. My contact info is below. I have also attached some info on the fiduciary rule. It is from a SIFMA summary and well explained. Pages 3-4 cover it. We understand that the WH has drafted delay language and its release is imminent, but we don't know for sure. I'd love to hear anything you hear if you are in a position to share it. Thanks, Wayne. John John Savercool Managing Director Head, US office of Public Policy UBS Americas 1501 K Street, NW, Suite 1000 Washington, DC 20005 l_.-.-.-.-._{bl(6L._._._.__: b) (6)_.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ! l.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ( DOL-17-0281-L-000003 AO 836892 OSEC 000850 Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC 2/2/2017 9: 10:44 PM Fwd: Could you call me ASAP From: To: Sent: Subject: Exec Order on Fiduciary will come out tomorrow at noon. We can discuss first thing. r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 From: "Sherk, 1ames B. EOP /WHO" :L.-.-.-.-.-.-.-.-.-.-.-.-.-.-o.rbj(6(?..-. .... ____________________ : i o . ':-.-.-.-.-.-.-.-.-.-.-.-.-.-.,---,.....,_---,.-.-.-.-.-.-.-.-.-.-. i SubJect: Could you call me A SAP '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.; Date: 02 February 2017 21 :04 r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 To: "Burr, Geoffrey G- OSEC" 1 (b)(G) i lP~;D~J~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ( ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ b)(5)-~ ~ ~ ~ ~ b) (5) ( M i i"-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Thanks, and sorry for the late notice. I just found out 10 minutes ago. James Sent from my iPhone DOL-17-0281-L-000004 AO 836892 OSEC 000851 Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC 2/2/2017 9: 10:44 PM Fwd: Could you call me ASAP From: To: Sent: Subject: Exec Order on Fiduciary will come out tomorrow at noon. We can discuss first thing. r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 From: "Sherk, 1ames B. EOP /WHO" :L.-.-.-.-.-.-.-.-.-.-.-.-.-.-o.rbj(6(?..-. .... ____________________ : i o . ':-.-.-.-.-.-.-.-.-.-.-.-.-.-.,---,.....,_---,.-.-.-.-.-.-.-.-.-.-. i SubJect: Could you call me A SAP '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.; Date: 02 February 2017 21 :04 r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 To: "Burr, Geoffrey G- OSEC" 1 (b)(G) i lP~;D~J~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ( ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ b)(5)-~ ~ ~ ~ ~ b) (5) ( M i i"-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Thanks, and sorry for the late notice. I just found out 10 minutes ago. James Sent from my iPhone DOL-17-0281-L-000004 AO 836892 OSEC 000851 From: To: Sent: Subject: Palmer, Wayne D - OSEC Burr, Geoffrey G - OSEC 2/2/2017 9:29:00 PM Re: Could you call me ASAP Thanks. I got the call, too. ! ! \--.-.-.-.-.-.-.-.-.-.-.-.-'-.o.-.-.-.-'-.-._. __.....__.._ ,: _________________________ On: 02 February 2017 21: 10, "Burr, Geoffrey G - OSEC" ! {b){6) !! ~--.-.-.-.-.-.-.-.-.-.-.-.-.----.-.-.-.-o-o.....-o-.-.--.-.-.-.-.-. ....... ----.-.-.-.-.-.-.-.-.-.-o-'i Exec Order on Fiduciary will come out tomorrow at noo~. We can discuss first thing. ; (b )(6) Fro?1: "Sherk, James B. EOP/WHO"! ! SubJect: Could you call me A SAP o-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-; Date: 02 February 2017 21 :04 ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., To: "Burr, Geoffrey G - 0 SEC" i-.-.-.-.-.-.-.-.-.-.-.-.-.( b)_( 6).-.-.-.-.-.-.-.-.-.-.-.-.-. i l..POTUS~L~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ <"b >ts>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~- (bJ~J-~~~~~~~~r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: Thanks, and sorry for the late notice. I just found out 10 minutes ago. James Sent from my iPhone DOL-17-0281-L-000005 AO 836892 OSEC 000852 From: To: Sent: Subject: Palmer, Wayne D - OSEC Burr, Geoffrey G - OSEC 2/2/2017 9:29:00 PM Re: Could you call me ASAP Thanks. I got the call, too. ! ! \--.-.-.-.-.-.-.-.-.-.-.-.-'-.o.-.-.-.-'-.-._. __.....__.._ ,: _________________________ On: 02 February 2017 21: 10, "Burr, Geoffrey G - OSEC" ! {b){6) !! ~--.-.-.-.-.-.-.-.-.-.-.-.-.----.-.-.-.-o-o.....-o-.-.--.-.-.-.-.-. ....... ----.-.-.-.-.-.-.-.-.-.-o-'i Exec Order on Fiduciary will come out tomorrow at noo~. We can discuss first thing. ; (b )(6) Fro?1: "Sherk, James B. EOP/WHO"! ! SubJect: Could you call me A SAP o-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-; Date: 02 February 2017 21 :04 ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., To: "Burr, Geoffrey G - 0 SEC" i-.-.-.-.-.-.-.-.-.-.-.-.-.( b)_( 6).-.-.-.-.-.-.-.-.-.-.-.-.-. i l..POTUS~L~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ <"b >ts>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~- (bJ~J-~~~~~~~~r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: Thanks, and sorry for the late notice. I just found out 10 minutes ago. James Sent from my iPhone DOL-17-0281-L-000005 AO 836892 OSEC 000852 Rogers, Jillian B - OSEC Palmer, Wayne D - OSEC; Bozzuto, Robert F - OSEC Lineberger, Timothy L - OSEC 2/3/2017 12:22: 14 PM for approval: Department of Labor to Delay Fiduciary Rule Fiduciary Rule_OSEC_2-3-17.docx From: To: CC: Sent: Subject: Attachments: News Statement U.S. Department of Labor I February 3, 2017 Department of Labor to Delay Fiduciary Rule WASHINGTON -Acting Secretary of Labor Edward Hugler today issued a statement following the release of President Trump's memorandum on the Department of Labor's Fiduciary Rule: "The Department of Labor will now consider its legal options to delay the applicability of the date as we comply with the President's memorandum." Read the President's memo here. (hyperlink link) ### Media Contacts: {b){6) Jil!ian Rogers,! ! M Icha e I T rupo ,!_______________________________________________________________________________________ ___: DOL-17-0281-L-000006 AO 836892 OSEC 000853 Rogers, Jillian B - OSEC Palmer, Wayne D - OSEC; Bozzuto, Robert F - OSEC Lineberger, Timothy L - OSEC 2/3/2017 12:22: 14 PM for approval: Department of Labor to Delay Fiduciary Rule Fiduciary Rule_OSEC_2-3-17.docx From: To: CC: Sent: Subject: Attachments: News Statement U.S. Department of Labor I February 3, 2017 Department of Labor to Delay Fiduciary Rule WASHINGTON -Acting Secretary of Labor Edward Hugler today issued a statement following the release of President Trump's memorandum on the Department of Labor's Fiduciary Rule: "The Department of Labor will now consider its legal options to delay the applicability of the date as we comply with the President's memorandum." Read the President's memo here. (hyperlink link) ### Media Contacts: {b){6) Jil!ian Rogers,! ! M Icha e I T rupo ,!_______________________________________________________________________________________ ___: DOL-17-0281-L-000006 AO 836892 OSEC 000853 Palmer, Wayne D - 0SEC Hugler, Edward - ASAM; Rogers, Jillian B - 0SEC Lineberger, Timothy L - 0SEC 2/3/2017 1 :03:22 PM RE: FW: for approval: Department of Labor to Delay Fiduciary Rule From: To: CC: Sent: Subject: Got it-thank s! See yo u soo n to discuss substa nce ... {t!.lrn\ ______________________ __l [__ JiJlj~[!J'. l!'.~e~ L __________________ ibf(5j __________________________ From: Hugler, Edward -ASAM Sent: Friday, February 03, 2017 12:52 PM To: Palmer, Wayne D - 0SEC Subject: Re: FW: for approval: Department of Labor to Delay Fiduciary Rule I like your suggestion to i (b)(S) !otherwise good. Thank you. Preference only. I go by 'Ed Hugler. Ok either way of course On Fri, Feb 3, 2017 at 12:38 PM, Palmer, Wayne D - OSEC ~ Ed , ' Are_you OK wi th [_ (b)(6) !wrote: (b}(5} _ I____________ _ 0 i ! (b)(5) I I i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ From: Rogers, Jillian B - 0SEC Sent: Friday, February 03, 2017 12:22 PM To: Palmer, Wayne D - 0SEC; Bozzuto, Robert F - 0SEC Cc: Lineberger, Timothy L - 0SEC Subject: for approval: Department of Labor to Delay Fiduciary Rule News Statement U.S. Department of Labor I February 3, 2017 Department of Labor to Delay Fiduciary Rule WASHINGTON -Acting Secretary of Labor Edward Hugler today issued a statement following the release of President Trump's memorandum on the Department of Labor's Fiduciary Rule: "The Department of Labor will now consider its legal options to delay the applicability of the date as we comply with DOL-17-0281-L-000007 AO 836892 OSEC 000854 Palmer, Wayne D - 0SEC Hugler, Edward - ASAM; Rogers, Jillian B - 0SEC Lineberger, Timothy L - 0SEC 2/3/2017 1 :03:22 PM RE: FW: for approval: Department of Labor to Delay Fiduciary Rule From: To: CC: Sent: Subject: Got it-thank s! See yo u soo n to discuss substa nce ... {t!.lrn\ ______________________ __l [__ JiJlj~[!J'. l!'.~e~ L __________________ ibf(5j __________________________ From: Hugler, Edward -ASAM Sent: Friday, February 03, 2017 12:52 PM To: Palmer, Wayne D - 0SEC Subject: Re: FW: for approval: Department of Labor to Delay Fiduciary Rule I like your suggestion to i (b)(S) !otherwise good. Thank you. Preference only. I go by 'Ed Hugler. Ok either way of course On Fri, Feb 3, 2017 at 12:38 PM, Palmer, Wayne D - OSEC ~ Ed , ' Are_you OK wi th [_ (b)(6) !wrote: (b}(5} _ I____________ _ 0 i ! (b)(5) I I i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ From: Rogers, Jillian B - 0SEC Sent: Friday, February 03, 2017 12:22 PM To: Palmer, Wayne D - 0SEC; Bozzuto, Robert F - 0SEC Cc: Lineberger, Timothy L - 0SEC Subject: for approval: Department of Labor to Delay Fiduciary Rule News Statement U.S. Department of Labor I February 3, 2017 Department of Labor to Delay Fiduciary Rule WASHINGTON -Acting Secretary of Labor Edward Hugler today issued a statement following the release of President Trump's memorandum on the Department of Labor's Fiduciary Rule: "The Department of Labor will now consider its legal options to delay the applicability of the date as we comply with DOL-17-0281-L-000007 AO 836892 OSEC 000854 the President's memorandum." Read the President's memo here. (hyperlink link) ### Media Contacts: Jil!ian Rogersj Michael Trupd {b){6) ! ! (___________________________________________________________________________________________________ i DOL-17-0281-L-000008 AO 836892 OSEC 000855 the President's memorandum." Read the President's memo here. (hyperlink link) ### Media Contacts: Jil!ian Rogersj Michael Trupd {b){6) ! ! (___________________________________________________________________________________________________ i DOL-17-0281-L-000008 AO 836892 OSEC 000855 Rogers, Jillian B - OSEC Palmer, Wayne D - OSEC 2/3/2017 1 :25:54 PM RE: FW: for approval: Department of Labor to Delay Fiduciary Rule From: To: Sent: Subject: Not Responsive ! I t--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. From: Palmer, Wayne D - OSEC Sent: Friday, February 03, 2017 1:24 PM To: Rogers, Jillian B - OSEC Subject: RE: FW: for approval: Department of Labor to Delay Fiduciary Rule !_______________________________________________________________________________________ N_ ot __ Respo ns ive--------------------------------------------I From: Rogers, Jillian B - OSEC Sent: Friday, February 03, 2017 1:21 PM To: Palmer, Wayne D - OSEC; Hugler, Edward - ASAM Cc: Lineberger, Timothy L - OSEC; Smith, Gavin J - OSEC Subject: RE: FW: for approval: Department of Labor to Delay Fiduciary Rule All edits below. Waiting for a link to the memo from W H then will send. Thanks all. From: Palmer, Wayne D - OSEC Sent: Friday, February 03, 2017 1:03 PM To: Hugler, Edward - ASAM; Rogers, Jillian B - OSEC Cc: Lineberger, Timothy L - OSEC Subject: RE: FW: for approval: Department of Labor to Delay Fiduciary Rule Got it-thanks! See you soon to discuss substance ... ( b) (5) !~J_ IJi9-Q~ .F..'.!~ .9_5. ?j l.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. I .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.'--1 ! { ... 'T.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i From: Hugler, Edward -ASAM Sent: Friday, February 03, 2017 12:52 PM To: Palmer, Wayne D - OSEC Subject: Re: FW: for approval: Department of Labor to Delay Fiduciary Rule j I Iike your suggestion to [_________________________ (b )_(5)_______________________ Otherwise good. Thank you. Preference only. I go by Ed Hugler. Ok either way of course .-o-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-, On Fri, Feb 3, 2017 at 12:38 PM, Palmer, Wayne D - OSEC Ed , wrote: I'~ sti!I waiti~g on WH to put up a link to the ~emo, they're waiting on the paper document.i (b )( 5) ] since its getting to end of news cycle on a Friday..... does that work? '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. News Statement U.S. Department of Labor I February 3, 2017 US Department of Labor to Eva I uate Fiduciary Rule WASHINGTON -Acting Secretary of Labor Ed Hugler today issued a statement following the release of President Trump's memorandum on the Department of Labor's Fiduciary Rule: "The Department of Labor will now consider its legal options to delay the applicability of the date as we comply with the President's memorandum." .--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i (b)(S) 1 i 1 i..-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j ### Media Contacts: Jil!ian Rogers,! Michael Trupoi { b){6) ] : L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. DOL-17-0281-L-000015 AO 836892 OSEC 000862 Burr, Geoffrey G - OSEC Rogers, Jillian B - OSEC; Palmer, Wayne D - OSEC; Bozzuto, Robert F - OSEC Lineberger, Timothy L - OSEC; Smith, Gavin J - OSEC 2/3/2017 3:05:55 PM Re: FW: for approval: Department of Labor to Delay Fiduciary Rule From: To: CC: Sent: Subject: Let's re-evaluate at 4pm if we still don't have it. On: 03 Febrnary 2017 15:01, "Rogers, Jillian B - OSEC" wrote: I'~ sti!I waiti~g on WH to put up a link to the ~emo, they're waiting on the paper document.i (b )( 5) ] since its getting to end of news cycle on a Friday..... does that work? '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. News Statement U.S. Department of Labor I February 3, 2017 US Department of Labor to Eva I uate Fiduciary Rule WASHINGTON -Acting Secretary of Labor Ed Hugler today issued a statement following the release of President Trump's memorandum on the Department of Labor's Fiduciary Rule: "The Department of Labor will now consider its legal options to delay the applicability of the date as we comply with the President's memorandum." .--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i (b)(S) 1 i 1 i..-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j ### Media Contacts: Jil!ian Rogers,! Michael Trupoi { b){6) ] : L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. DOL-17-0281-L-000015 AO 836892 OSEC 000862 From: To: Sent: Subject: Attachments: Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC; Hugler, Edward - ASAM; Hauser, Timothy - EBSA 2/3/2017 3:44:55 PM Fwd: Fiduciary ATT00001.htm; Fiduciary Duty Memo - 0202 - PREOLC.docx From: 11Sherk, James B. EOP /WHO II il_________________________ ,._.(b)(6(.-..1.. __________________ : ! Sub. ect: Fiducia .:-.-.-.-.-.-.-.-.-.-.-.-.""\.._-7y-.7.-.-.-.-.-.-.-.-.-. i J ry '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.Date: 03 February 2017 15:39 ! .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: i!~~,.~~~;~~:~~frey i____________________ J_~J.(~_) ___________________ 11 G - OSEC ___j DOL-17-0281-L-000016 AO 836892 OSEC 000863 From: To: Sent: Subject: Attachments: Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC; Hugler, Edward - ASAM; Hauser, Timothy - EBSA 2/3/2017 3:44:55 PM Fwd: Fiduciary ATT00001.htm; Fiduciary Duty Memo - 0202 - PREOLC.docx From: 11Sherk, James B. EOP /WHO II il_________________________ ,._.(b)(6(.-..1.. __________________ : ! Sub. ect: Fiducia .:-.-.-.-.-.-.-.-.-.-.-.-.""\.._-7y-.7.-.-.-.-.-.-.-.-.-. i J ry '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.Date: 03 February 2017 15:39 ! .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: i!~~,.~~~;~~:~~frey i____________________ J_~J.(~_) ___________________ 11 G - OSEC ___j DOL-17-0281-L-000016 AO 836892 OSEC 000863 From: To: Sent: Subject: Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC; Hugler, Edward - ASAM; Hauser, Timothy - EBSA 2/3/2017 3:48: 19 PM Re: Fiduciary Please hold off This is apparently a non final version. Official final language being sent to me now . . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-, On: 03 February 2017 15:44, "Burr, Geoffrey G- OSEC"[_.-.-.-.-.-.-.-.-.-.-.-.-(b)(6) ________________________ ~rote: . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i Fro?1: "Sh~rk, _JamesB. EOP/WHO" (b }(6) ! SubJect: F 1du c1ary '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." Date: 03 February 2017 15:39 i!~~,'~~~;~~:~~frey G- OSEC" ; : l~l(~J _________________ i__ _________________I DOL-17-0281-L-000017 AO 836892 OSEC 000864 From: To: Sent: Subject: Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC; Hugler, Edward - ASAM; Hauser, Timothy - EBSA 2/3/2017 3:48: 19 PM Re: Fiduciary Please hold off This is apparently a non final version. Official final language being sent to me now . . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-, On: 03 February 2017 15:44, "Burr, Geoffrey G- OSEC"[_.-.-.-.-.-.-.-.-.-.-.-.-(b)(6) ________________________ ~rote: . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i Fro?1: "Sh~rk, _JamesB. EOP/WHO" (b }(6) ! SubJect: F 1du c1ary '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." Date: 03 February 2017 15:39 i!~~,'~~~;~~:~~frey G- OSEC" ; : l~l(~J _________________ i__ _________________I DOL-17-0281-L-000017 AO 836892 OSEC 000864 From: To: Sent: Subject: Attachments: Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC; Hugler, Edward - ASAM; Hauser, Timothy - EBSA 2/3/2017 3:50:54 PM Fwd: STAFF SEC: Signed by POTUS ATT00001.htm; ATT00002.htm; FINAL Core Principles.docx; FINAL Fiduciary Duty.docx Final version. .._._._._._._._._._._._._._L__.! From: "Sherk, 1ames B. EOP /WHO" j-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-(b)(6r Subject: FW: STAFF SEC: Signed by POTUS Date: 03 February 2017 15:49 ;"-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.; To: "Burr, Geoffrey G- OSEC" ! Here is the final versio n. 4;___________________________________________________________________ {b)(6) ; From: Bremberg, Andrew P. EOP/WHO Sent: Friday, February 3, 2017 3:46 PM To: Sherk, James B. EOP/WHO r-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-ibj(sf.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: ____ j Subject: Fwd: STAFF SEC: Signed by POTUS Here you go. Sent from my iPhone Begin forwarded message: ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i From: "Porter, Robert R. EOP/WHO" (b){6) i Date: February 3, 2017 at 3:45: 18 PM ~.$.T___________________________________________________________________ :________________ , To: "Brem berg, Andrew P. EOP/WHO" L_ ____________________________________ (b)( 6)-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. i Subject: FW: STAFF SEC: Signed by POTUS DOL-17-0281-L-000018 AO 836892 OSEC 000865 From: To: Sent: Subject: Attachments: Burr, Geoffrey G - OSEC Palmer, Wayne D - OSEC; Hugler, Edward - ASAM; Hauser, Timothy - EBSA 2/3/2017 3:50:54 PM Fwd: STAFF SEC: Signed by POTUS ATT00001.htm; ATT00002.htm; FINAL Core Principles.docx; FINAL Fiduciary Duty.docx Final version. .._._._._._._._._._._._._._L__.! From: "Sherk, 1ames B. EOP /WHO" j-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-(b)(6r Subject: FW: STAFF SEC: Signed by POTUS Date: 03 February 2017 15:49 ;"-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.; To: "Burr, Geoffrey G- OSEC" ! Here is the final versio n. 4;___________________________________________________________________ {b)(6) ; From: Bremberg, Andrew P. EOP/WHO Sent: Friday, February 3, 2017 3:46 PM To: Sherk, James B. EOP/WHO r-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-ibj(sf.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: ____ j Subject: Fwd: STAFF SEC: Signed by POTUS Here you go. Sent from my iPhone Begin forwarded message: ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i From: "Porter, Robert R. EOP/WHO" (b){6) i Date: February 3, 2017 at 3:45: 18 PM ~.$.T___________________________________________________________________ :________________ , To: "Brem berg, Andrew P. EOP/WHO" L_ ____________________________________ (b)( 6)-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. i Subject: FW: STAFF SEC: Signed by POTUS DOL-17-0281-L-000018 AO 836892 OSEC 000865 DL-EOP-WHCO-LawyersOnly i (b }(6) iMoree, Christian A. EOP/NSC 1 , __ g_~: __ e_g_~~-~?_.Bg_~-;~(~~--~-Qf.t.{Y_~_Q_~--~--~--~:-~:-~:-~:-~:-~:-~:-~:-~:-~:-~:-~:-~ _s..EO_P/WH o ___________ . !__ _ ____________(~)(~). __ .-.-.--.-. _____.--~atich, Nicholas T. EOP/WHO Y{si-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-1 i Sent: Friday, February 03, 2017 5: 02 PM '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.; To: Palmer, Wayne D - OSEC Subject: FW: Presidential Memorandum on Fiduciary Duty Rule L-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-'("o~,o'(o~yo-o-o-o-o-o-o-o-o-o-o-oo I From: White House Press Office [mai lto:j {b){6) j Sent: Friday, February 3, 2017 4: 58 P fv1---.-.:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:.-.-. To: Bremberg, Andrew P. EOP/WHO Y{si-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-1 i Sent: Friday, February 03, 2017 5: 02 PM '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.; To: Palmer, Wayne D - OSEC Subject: FW: Presidential Memorandum on Fiduciary Duty Rule L-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-'("o~,o'(o~yo-o-o-o-o-o-o-o-o-o-o-oo I From: White House Press Office [mai lto:j {b){6) j Sent: Friday, February 3, 2017 4: 58 P fv1---.-.:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:..:.-.-. To: Bremberg, Andrew P. EOP/WHO jis1""'-.-. .-"'.--. .-.-.-.: On: 06 February 2 O17 21: 51, "Ditto, Jessica E. EOP /WHO" i1__ . . '.r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-\---r\-.--r-.-.-. ! ' Thank you! Do yo u have what you need on the f1duc1aryrule? :_.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j From: Lineberger, Ti mo thy L - OS EC [ mai Ito!_____________________________ ( b)( 6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-i Sent: Monday, February 6, 2017 6:10 PM Rateike Bradle A. EOP/WHO To: Ditto Jessica E. EOP/WHO r-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-b.-.s-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-: 129 'fii:~;i~~:=;;;;f ~1F6?~;;:~;;'.:: ir::~~~i~~t~::~:?\~;~r~~;;~:;: ~>----------1 Palmer, Wayne D - OSEC jis1""'-.-. .-"'.--. .-.-.-.: On: 06 February 2 O17 21: 51, "Ditto, Jessica E. EOP /WHO" i1__ . . '.r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-\---r\-.--r-.-.-. ! ' Thank you! Do yo u have what you need on the f1duc1aryrule? :_.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j From: Lineberger, Ti mo thy L - OS EC [ mai Ito!_____________________________ ( b)( 6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-i Sent: Monday, February 6, 2017 6:10 PM Rateike Bradle A. EOP/WHO To: Ditto Jessica E. EOP/WHO r-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-b.-.s-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-: 129 'fii:~;i~~:=;;;;f ~1F6?~;;:~;;'.:: ir::~~~i~~t~::~:?\~;~r~~;;~:;: ~>----------1 Palmer, Wayne D - OSEC -.-.-.-.-.-.! direct L.~-~-~-~-~!bHS>~-~-~-~-~-~-! ce 11 DOL-17-0281-L-000047 AO 836892 OSEC 000894 From: To: CC: Sent: Subject: Attachments: Mehrens, Nathan P - OSEC Palmer, Wayne D - OSEC; Burr, Geoffrey G - OSEC; Conway, Molly E - OSEC Rogers, Jillian B - OSEC 2/8/2017 3:04:29 PM Motion for Stay in Fiduciary Case COi as filed stay motion.pdf As filed . It's attached. Nathan Mehrens U.S. Department of Labor meh rens.nathan. p@dol .gov :____________ !bHS> -.-.-.-.-.-.! direct L.~-~-~-~-~!bHS>~-~-~-~-~-~-! ce 11 DOL-17-0281-L-000047 AO 836892 OSEC 000894 From: To: CC: Sent: Subject: Attachments: Hauser, Timothy - EBSA Hugler, Edward - ASAM; Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Hauser, Timothy - EBSA 2/8/2017 4:02:45 PM Long- and Short-Form Drafts of Fiduciary Delay Proposal COi Delay NPRM Long 02082017 3pm.docx; COi Delay NPRM Short 02082017 345pm.docx -~!!~.?.~~_9. __p~~~~-~--!i_~~--~-19-~9--~-~9.-~--~~~-~--~-~-~~-~~-~--?._f __ !~-~--!.i_~-~?].~~y__9_~_1~t_e~?.E?.~~-~---My _Plan~ ( b) (5) i ( b) (5) l.i L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.J i--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-i This message may contain information that is privileged and exempt from disclosure under applicable law. Do not share or copy without consulting the Employee Benefits Security Administration. If you think you received this e-mail in error, please notify the sender immediately. DOL-17-0281-L-000048 AO 836892 OSEC 000895 From: To: CC: Sent: Subject: Attachments: Hauser, Timothy - EBSA Hugler, Edward - ASAM; Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Hauser, Timothy - EBSA 2/8/2017 4:02:45 PM Long- and Short-Form Drafts of Fiduciary Delay Proposal COi Delay NPRM Long 02082017 3pm.docx; COi Delay NPRM Short 02082017 345pm.docx -~!!~.?.~~_9. __p~~~~-~--!i_~~--~-19-~9--~-~9.-~--~~~-~--~-~-~~-~~-~--?._f __ !~-~--!.i_~-~?].~~y__9_~_1~t_e~?.E?.~~-~---My _Plan~ ( b) (5) i ( b) (5) l.i L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.J i--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-i This message may contain information that is privileged and exempt from disclosure under applicable law. Do not share or copy without consulting the Employee Benefits Security Administration. If you think you received this e-mail in error, please notify the sender immediately. DOL-17-0281-L-000048 AO 836892 OSEC 000895 From: To: CC: Sent: Subject: Attachments: Burr, Geoffrey G - OSEC Hugler, Edward - ASAM Conway, Molly E - OSEC; Mehrens, Nathan P - OSEC; Palmer, Wayne D - OSEC 2/8/2017 5:09:35 PM Fwd: Edits to Fiduciary Rule Delay Proposed Rule 2017 02 08 - Edits to Fiduciary Rule Applicability Date Delay.pdf From: "Conway, Molly E - OSEC" ~ (b)(6) I Subject: Edits to Fiduciary Rule DelafFiopose"a-Ri::ile-.-.-.-.-.-.-.-.-.-.-.-.-.-. Date: 08 February 2017 16:21 ! ! To: "Hauser, Timothy-EBSA" i Cc: "Burr, Geoffrey G - OSEC" i ~>, "Palmer, Wayne D - OSEC" S1-.rim:.-.-.-.-.-.-.~__{~!(~L-._._._._._._.~-.-.-.-.-J IMehr ens, Nathan p - 0 SECII .r-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-tb)isY-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.- 1 (b){6) Attached are our edits to the fiduciary proposed rule. ! {b){ 5) ! r-.----------------------------------------------------------------------------------------------------------------------, "Palmer, Wayne D - OSEC" S1-.rim:.-.-.-.-.-.-.~__{~!(~L-._._._._._._.~-.-.-.-.-J IMehr ens, Nathan p - 0 SECII .r-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-tb)isY-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.- 1 (b){6) Attached are our edits to the fiduciary proposed rule. ! {b){ 5) ! r-.----------------------------------------------------------------------------------------------------------------------J{~L ............... J "Campau, Anthony" 1 ................................................................ , !....................... {b) {6) ....................... i Wayr,e, Below is a list of recently published regulatory, policy, and other administrative actions that need review from your agency. Please work with your policy, legal, and regulatory teams to review and recommend actions before COB on Thursday, February 23 rd We look forward to discussing this further with you. DEPARTMENT CATEGORY SUBJECT SUMMARY RECOMMENDED ACTION Not Responsive Regulatory Action Labor Best Interest Contract Exemption for Insurance Intermediaries o Department of Labor/Employee Benefits Security Administration proposed rule on Best Interest Contract Exemption for Insurance Intermediaries (Publication date: 1/19/17). This proposed rule addressing industry concerns by providing an exemption for independent marketing organizations (IMOs) to the fiduciary rule. While IMOs can already apply for individual exemptions, this rule would operate in effect like a safe harbor and lessen requirements for compliance by establishing a clear standard. Comments must be submitting within 30 days of the publication of the rule. Not Responsive Charlie Dankert EOP / 0MB BEACHHEAD (c) , o.o.o. ll>JJ.sL.. .o .1 DOL-17-0281-L-000068 AO 836892 OSEC 000915 From: To: Sent: Subject: Palmer, Wayne D - OSEC Geale, NicholasC - SOL 2/16/2017 6 06 58 PM Fwd REGULATORY REVIEW Here you go. Begin Forwarded Message:From: "Dankert, Charles M. EOP,ONJB" Subject: REGlJLATORYREVlEW Date: 16 February 2017 17:49 o.........................................o To: "Fahner, Wayne D - OSEC" T ____ (b)(6)________ J.............. , [............. (b)(6)............. J{~L ............... J "Campau, Anthony" 1 ................................................................ , !....................... {b) {6) ....................... i Wayr,e, Below is a list of recently published regulatory, policy, and other administrative actions that need review from your agency. Please work with your policy, legal, and regulatory teams to review and recommend actions before COB on Thursday, February 23 rd We look forward to discussing this further with you. DEPARTMENT CATEGORY SUBJECT SUMMARY RECOMMENDED ACTION Not Responsive Regulatory Action Labor Best Interest Contract Exemption for Insurance Intermediaries o Department of Labor/Employee Benefits Security Administration proposed rule on Best Interest Contract Exemption for Insurance Intermediaries (Publication date: 1/19/17). This proposed rule addressing industry concerns by providing an exemption for independent marketing organizations (IMOs) to the fiduciary rule. While IMOs can already apply for individual exemptions, this rule would operate in effect like a safe harbor and lessen requirements for compliance by establishing a clear standard. Comments must be submitting within 30 days of the publication of the rule. Not Responsive Charlie Dankert EOP / 0MB BEACHHEAD (c) , o.o.o. ll>JJ.sL.. .o .1 DOL-17-0281-L-000068 AO 836892 OSEC 000915 DOL-17-0281-L-000069 DOL-17-0281-L-000069 From: To: Sent: Subject: Conway, Molly E - OSEC Palmer, Wayne D - OSEC: Burr, Geoffrey G - OSEC: Mehrens, Nathan P - OSEC 2/16/2017 6 09 04 PM Re REGULATORY REVIEW Tiianks! Nick Nathan, and I will pow-wow ton1orrowand provide our reconunendations to you and GeotI. On: 16 February 2017 17:58, "Fahner, Wayne D - OSEC" i (b}(G} i wrote: Looks like Nick still isn't on the global address list I will give 'liTrfl"Tiafaco-rJyo(f"wi'iiiteayoCi'to see this ASAP as well. From: Dankert, Charles M. EOP/OMB r-.-.-.-.-.-.-.-.-.-.-.1i,i1i;f'-.-.-.-.-.-.-.-.-.-.-! Sent: Thursday, February 16, 2017 5:47 PM To: Palmer, Wayne D - OSEC Cc: Peacock, Marcus C EOP/OMB: Campau, Anthony Subject: REGULATORY REVIEW Wayr,e, Below is a list of recently published regulatory, policy, and other administrative actions that need review from your agency. Please work with your policy, legal, and regulatory teams to review and recommend actions before COB on Thursday, February 23 rd We look forward to discussing this further with you. DEPARTMENT CATEGORY SUBJECT SUMMARY RECOMMENDED ACTION Not Responsive Labor Regulatory Action Best Interest Contract Exemption for Insurance Intermediaries o Department of Labor/Employee Benefits Security Administration proposed rule on Best Interest Contract Exemption for Insurance Intermediaries (Publication date: 1/19/17). This proposed rule addressing industry concerns by providing an exemption for independent marketing organizations (IMOs) to the fiduciary rule. While IMOs can already apply for individual exemptions, this rule would operate in effect like a safe harbor and lessen requirements for compliance by establishing a clear standard. Comments must be submitting within 30 days of the publication of the rule. Not Responsive Charlie Dankert EOP / 0MB BEACHHEAD (c) '-.-.-.ll>JJ.sL._.1 DOL-17-0281-L-000070 AO 836892 OSEC 000917 From: To: Sent: Subject: Conway, Molly E - OSEC Palmer, Wayne D - OSEC: Burr, Geoffrey G - OSEC: Mehrens, Nathan P - OSEC 2/16/2017 6 09 04 PM Re REGULATORY REVIEW Tiianks! Nick Nathan, and I will pow-wow ton1orrowand provide our reconunendations to you and GeotI. On: 16 February 2017 17:58, "Fahner, Wayne D - OSEC" i (b}(G} i wrote: Looks like Nick still isn't on the global address list I will give 'liTrfl"Tiafaco-rJyo(f"wi'iiiteayoCi'to see this ASAP as well. From: Dankert, Charles M. EOP/OMB r-.-.-.-.-.-.-.-.-.-.-.1i,i1i;f'-.-.-.-.-.-.-.-.-.-.-! Sent: Thursday, February 16, 2017 5:47 PM To: Palmer, Wayne D - OSEC Cc: Peacock, Marcus C EOP/OMB: Campau, Anthony Subject: REGULATORY REVIEW Wayr,e, Below is a list of recently published regulatory, policy, and other administrative actions that need review from your agency. Please work with your policy, legal, and regulatory teams to review and recommend actions before COB on Thursday, February 23 rd We look forward to discussing this further with you. DEPARTMENT CATEGORY SUBJECT SUMMARY RECOMMENDED ACTION Not Responsive Labor Regulatory Action Best Interest Contract Exemption for Insurance Intermediaries o Department of Labor/Employee Benefits Security Administration proposed rule on Best Interest Contract Exemption for Insurance Intermediaries (Publication date: 1/19/17). This proposed rule addressing industry concerns by providing an exemption for independent marketing organizations (IMOs) to the fiduciary rule. While IMOs can already apply for individual exemptions, this rule would operate in effect like a safe harbor and lessen requirements for compliance by establishing a clear standard. Comments must be submitting within 30 days of the publication of the rule. Not Responsive Charlie Dankert EOP / 0MB BEACHHEAD (c) '-.-.-.ll>JJ.sL._.1 DOL-17-0281-L-000070 AO 836892 OSEC 000917 DOL-17-0281-L-000071 DOL-17-0281-L-000071 From: To: CC: Sent: Subject: Dankert, Charles M. EOP/OMB Palmer, Wayne D - OSEC Peacock, Marcus C EOP/OMB: Campau, Anthony 2/16/2017 819:47 PM RE REGULATORY REVIEW Good to hear Wayne. Call us if you have any qL~stions. Thanks, Charlie (b}(6) From: Palmer, Wayne D - OSEC [mailto! ! Sent: Thursday, February 16, 2017 5 52 PM ' To: Dankert, Charles M. EOP/OM B r-.-.-.-.-.-.-.-.-.-.-.(b)(6)-.-.-.-.-.-.-.-.-.-.-j Cc: Peacock, Marcus C EOP/OMB [-.-.-.-.-.-.-.-.-.-.-.1jjjii;f'-.-.-.-.-.-.-.-.-.-.! Campau, Anthony r-.-.-.-.-.-.-.-.-.-.-.1i,iii;i-.-.-.-.-.-.-.-.-.-.-.i Subject: RE REGULATORY REVIEW Will do, Charlie. We're already working on some of these. From: Dankert, Charles M. EOP/OMB Sent: Thursday, February 16, 2017 5:47 PM To: Palmer, Wayne D - OSEC Cc: Peacock, Marcus C EOP/OMB: Campau, Anthony Subject: REGULATORY REVIEW Wayne, Below is a list of recently published regulatory, policy, and other administrative actions that need review from your agency. Please work with your policy, legal, and regulatory teams to review and recommend actions before COB on Thursday, February 23 rd We look forward to discussing this further with you. Not Responsive Labor Regulatory Action Best Interest Contract Exemption for Insurance Intermediaries ' i o Department of Labor/Employee Benefits Security Administration proposed rule on Best Interest Contract Exemption for Insurance Intermediaries (Publication date: 1/19/17). This proposed rule addressing industry concerns by providing an exemption for independent marketing organizations (IMOs) to the fiduciary rule. While IMOs can already apply for individual exemptions, this rule would operate in effect like a safe harbor and lessen requirements for compliance by establishing a clear standard. Comments must be submittinq within 30 days of the publication of the rule. Not Responsive DOL-17-0281-L-000072 AO 836892 OSEC 000919 From: To: CC: Sent: Subject: Dankert, Charles M. EOP/OMB Palmer, Wayne D - OSEC Peacock, Marcus C EOP/OMB: Campau, Anthony 2/16/2017 819:47 PM RE REGULATORY REVIEW Good to hear Wayne. Call us if you have any qL~stions. Thanks, Charlie (b}(6) From: Palmer, Wayne D - OSEC [mailto! ! Sent: Thursday, February 16, 2017 5 52 PM ' To: Dankert, Charles M. EOP/OM B r-.-.-.-.-.-.-.-.-.-.-.(b)(6)-.-.-.-.-.-.-.-.-.-.-j Cc: Peacock, Marcus C EOP/OMB [-.-.-.-.-.-.-.-.-.-.-.1jjjii;f'-.-.-.-.-.-.-.-.-.-.! Campau, Anthony r-.-.-.-.-.-.-.-.-.-.-.1i,iii;i-.-.-.-.-.-.-.-.-.-.-.i Subject: RE REGULATORY REVIEW Will do, Charlie. We're already working on some of these. From: Dankert, Charles M. EOP/OMB Sent: Thursday, February 16, 2017 5:47 PM To: Palmer, Wayne D - OSEC Cc: Peacock, Marcus C EOP/OMB: Campau, Anthony Subject: REGULATORY REVIEW Wayne, Below is a list of recently published regulatory, policy, and other administrative actions that need review from your agency. Please work with your policy, legal, and regulatory teams to review and recommend actions before COB on Thursday, February 23 rd We look forward to discussing this further with you. Not Responsive Labor Regulatory Action Best Interest Contract Exemption for Insurance Intermediaries ' i o Department of Labor/Employee Benefits Security Administration proposed rule on Best Interest Contract Exemption for Insurance Intermediaries (Publication date: 1/19/17). This proposed rule addressing industry concerns by providing an exemption for independent marketing organizations (IMOs) to the fiduciary rule. While IMOs can already apply for individual exemptions, this rule would operate in effect like a safe harbor and lessen requirements for compliance by establishing a clear standard. Comments must be submittinq within 30 days of the publication of the rule. Not Responsive DOL-17-0281-L-000072 AO 836892 OSEC 000919 Charlie Dankert EOP I OMB BEACHHEAD DOL-17-0281-L-000073 Charlie Dankert EOP I OMB BEACHHEAD DOL-17-0281-L-000073 From: To: Sent: Subject: Attachments: Mehrens, Nathan P - OSEC Palmer, Wayne D - OSEC 2/17/2017 5:16:07 PM Fwd: DOL Fiduciary Rule litigation Letter to Mr. Edward C. Hugler.pdf FYI. From: "Conway, Molly E - OSEC" i.__ _______________________ {_b ){6) .-.-.-.-.-.-.-.-.-.-.-J Subject: FW: DOL Fiduciary Rule litigation Date: 17 February 2017 16:53 c.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-; To: "Burr, Geoffrey G- OSEC" <; (b)(6) "Geale, Nicholas C. - SOL" r, iL--cc":.-1rMelireii-s-,.--Natfiaii_P_=.usEc,.,. (b) (6) i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. i (bHs> i L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.--.-.-.-.-.-.-.-.-.-.-.-.-.-.o From: Flentie, August(CIV) Sent: Friday. Febmary 17. 2017 To: Mehrens.NathanP- OSEC: Conway.Molly E - OSEC Subject: FW: DOLFiduciaryRule litigation Fyi - we are looking at this. i From: Scalia, Eugene [n:rniJt Q;j (b)(6) Sent: Fridav. Febmarv 17. 2017"3:59.PM-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Flen(je: August (CJ..Y}j __________________________ {~)_(~L_-.-.-.-.-.-.-.,-.-.-.j Cc: Mendro, Jason J. L______________________ (b)(G)______________________ ___i Subject: DOL Fiduciary Rule litigation Mr. Flentje, attached is a letter that has been sent to the Labor Department today, as well as to your colleagues Galen Thorp and Emily Newton. In brief, DOL has the authority to postpone the Fiduciary Rule's "applicability date" under APA Section 705, and should do so while the litigation is pending and review of the Rule is underway at the Department. And with all respect, that is a far more sensible disposition than staying the litigation, particularly seeking to stay the litigation while the Rule's "applicability date"--and the immense costs that litigants seek relief from--are imminent. This message may contain confidential and privileged information. If it has been sent to you in error, please reply to advise the sender of the error and then immediately delete this message. DOL-17-0281-L-000074 AO 836892 OSEC 000921 From: To: Sent: Subject: Attachments: Mehrens, Nathan P - OSEC Palmer, Wayne D - OSEC 2/17/2017 5:16:07 PM Fwd: DOL Fiduciary Rule litigation Letter to Mr. Edward C. Hugler.pdf FYI. From: "Conway, Molly E - OSEC" i.__ _______________________ {_b ){6) .-.-.-.-.-.-.-.-.-.-.-J Subject: FW: DOL Fiduciary Rule litigation Date: 17 February 2017 16:53 c.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-; To: "Burr, Geoffrey G- OSEC" <; (b)(6) "Geale, Nicholas C. - SOL" r, iL--cc":.-1rMelireii-s-,.--Natfiaii_P_=.usEc,.,. (b) (6) i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. i (bHs> i L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.--.-.-.-.-.-.-.-.-.-.-.-.-.-.o From: Flentie, August(CIV) Sent: Friday. Febmary 17. 2017 To: Mehrens.NathanP- OSEC: Conway.Molly E - OSEC Subject: FW: DOLFiduciaryRule litigation Fyi - we are looking at this. i From: Scalia, Eugene [n:rniJt Q;j (b)(6) Sent: Fridav. Febmarv 17. 2017"3:59.PM-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Flen(je: August (CJ..Y}j __________________________ {~)_(~L_-.-.-.-.-.-.-.,-.-.-.j Cc: Mendro, Jason J. L______________________ (b)(G)______________________ ___i Subject: DOL Fiduciary Rule litigation Mr. Flentje, attached is a letter that has been sent to the Labor Department today, as well as to your colleagues Galen Thorp and Emily Newton. In brief, DOL has the authority to postpone the Fiduciary Rule's "applicability date" under APA Section 705, and should do so while the litigation is pending and review of the Rule is underway at the Department. And with all respect, that is a far more sensible disposition than staying the litigation, particularly seeking to stay the litigation while the Rule's "applicability date"--and the immense costs that litigants seek relief from--are imminent. This message may contain confidential and privileged information. If it has been sent to you in error, please reply to advise the sender of the error and then immediately delete this message. DOL-17-0281-L-000074 AO 836892 OSEC 000921 From: To: Sent: Subject: Attachments: L____________________ (b )(6) -.-.-.-.-.-.-.-.-.-. ! Palmer, Wayne D - OSEC 2/28/2017 5:45:21 PM FW: UBS Scheduling Request - March 2 TN Bio - Winter 2017 v2.pdf Wayne - can you help here? Thanks. John From: Nolan, John-A Sent: Frid,ay, February 24.c_20_1_7_ 5:27 PM To: Yerxai (b)(6) : Cc: Savercool, John; palmer.L.____________ (b)(6) ____________ ___: Subject: UBS Scheduling Request - March 2 Hi Christopher, I am contacting you to see if we can set up an appointment with our CEO (CEO of UBS), Tom Naratil, with Acting Secretary Hugler. Tom will be in Washington on Tuesday, March 2 and arrives shortly after 9 am. He could meet anytime between 9:30 am and 11:15 am and between 12:30 pm and 1:30 pm that day. Is it possible to set something up? The purpose of the meeting is for Tom to introduce himself and UBS and to discuss the current state of the fiduciary rule in light of the April 1dhapplicability date and the review of the rule called for in the White House memorandum dated February 3rd . Thanks for considering this, and please let us know what can be arranged. Tom's bio is attached. Best regards, John John P. Nolan Executive Director Federal Affairs Manager U.S. Office of Public Policy UBS Americas Inc. 1501 K Street, NW Suite 1100 Washington, DC 20005 i :._____________________ (b)(6) .-.-.-.-.-.-.-.-.-.-. :__ __________ (b)(6)____________ ! DOL-17-0281-L-000075 AO 836892 OSEC 000922 From: To: Sent: Subject: Attachments: L____________________ (b )(6) -.-.-.-.-.-.-.-.-.-. ! Palmer, Wayne D - OSEC 2/28/2017 5:45:21 PM FW: UBS Scheduling Request - March 2 TN Bio - Winter 2017 v2.pdf Wayne - can you help here? Thanks. John From: Nolan, John-A Sent: Frid,ay, February 24.c_20_1_7_ 5:27 PM To: Yerxai (b)(6) : Cc: Savercool, John; palmer.L.____________ (b)(6) ____________ ___: Subject: UBS Scheduling Request - March 2 Hi Christopher, I am contacting you to see if we can set up an appointment with our CEO (CEO of UBS), Tom Naratil, with Acting Secretary Hugler. Tom will be in Washington on Tuesday, March 2 and arrives shortly after 9 am. He could meet anytime between 9:30 am and 11:15 am and between 12:30 pm and 1:30 pm that day. Is it possible to set something up? The purpose of the meeting is for Tom to introduce himself and UBS and to discuss the current state of the fiduciary rule in light of the April 1dhapplicability date and the review of the rule called for in the White House memorandum dated February 3rd . Thanks for considering this, and please let us know what can be arranged. Tom's bio is attached. Best regards, John John P. Nolan Executive Director Federal Affairs Manager U.S. Office of Public Policy UBS Americas Inc. 1501 K Street, NW Suite 1100 Washington, DC 20005 i :._____________________ (b)(6) .-.-.-.-.-.-.-.-.-.-. :__ __________ (b)(6)____________ ! DOL-17-0281-L-000075 AO 836892 OSEC 000922 From: :.__________________ (b)(6) -.-.-.-.-.-.-.-.-.! Sent: Monday, February 27, 2017 2:03 PM Yerxa, Christopher W - ASAM [____________________________ (b)(6) ____________________________ ! Wayne D - OSEC RE: UBS Scheduling Request - March 2 Legal Disclaimer.txt To: Cc: Subject: Attachments: Hi Christopher, To qu ickly fo llow up, we' ve updated the schedu le and Tom current ly has the fo llowing availabili t y on Thursda y, March 2nd: o 9:45 or 10 am. o Anyti me between 12:30 pm and 3:3 0 pm. o 5:15 pm. Let us know if any of these t im es wou ld wor k. Thanks again for you r co nsiderat io n. Best regards, Joh n From: Nolan, John-A Sent: Friday, February 24, 2017 5:27 PM To: 'Yerxa.christopher@dol.gov' Cc: Savercool, John;[__________________________ (b)(S) -.-.-.-.-.-.-.-.-.-.-.-.-.i Subject: UBS Scheduling Request - March 2 Hi Christopher, I am contacting you to see ifwe can set up an appointment with our CEO (CEO of UBS), Tom Naratil, with Acting Secretary Bugler. Tom will be in Washington on Thursday, March 2 and arrives shortly after 9 am. He could meet anytime between 9:30 am and I 1:15 am and between 12:30 pm and 1:30 pm that day. Is it possible to set something up? The purpose of the meeting is for Tom to introduce himself and UBS and to discuss the current state of the fiduciary rule in light of the April I 0th applicability date and the review of the rule called for in the White House memorandum dated February 3rd . Thanks for considering this, and please let us know what can be arranged. Tom's bio is attached. Best regards, John John P. Nolan Executive Director Federal Affairs Manager U.S. Office of Public Policy UBS Americas Inc. DOL-17-0281-L-000076 AO 836892 OSEC 000923 From: :.__________________ (b)(6) -.-.-.-.-.-.-.-.-.! Sent: Monday, February 27, 2017 2:03 PM Yerxa, Christopher W - ASAM [____________________________ (b)(6) ____________________________ ! Wayne D - OSEC RE: UBS Scheduling Request - March 2 Legal Disclaimer.txt To: Cc: Subject: Attachments: Hi Christopher, To qu ickly fo llow up, we' ve updated the schedu le and Tom current ly has the fo llowing availabili t y on Thursda y, March 2nd: o 9:45 or 10 am. o Anyti me between 12:30 pm and 3:3 0 pm. o 5:15 pm. Let us know if any of these t im es wou ld wor k. Thanks again for you r co nsiderat io n. Best regards, Joh n From: Nolan, John-A Sent: Friday, February 24, 2017 5:27 PM To: 'Yerxa.christopher@dol.gov' Cc: Savercool, John;[__________________________ (b)(S) -.-.-.-.-.-.-.-.-.-.-.-.-.i Subject: UBS Scheduling Request - March 2 Hi Christopher, I am contacting you to see ifwe can set up an appointment with our CEO (CEO of UBS), Tom Naratil, with Acting Secretary Bugler. Tom will be in Washington on Thursday, March 2 and arrives shortly after 9 am. He could meet anytime between 9:30 am and I 1:15 am and between 12:30 pm and 1:30 pm that day. Is it possible to set something up? The purpose of the meeting is for Tom to introduce himself and UBS and to discuss the current state of the fiduciary rule in light of the April I 0th applicability date and the review of the rule called for in the White House memorandum dated February 3rd . Thanks for considering this, and please let us know what can be arranged. Tom's bio is attached. Best regards, John John P. Nolan Executive Director Federal Affairs Manager U.S. Office of Public Policy UBS Americas Inc. DOL-17-0281-L-000076 AO 836892 OSEC 000923 1501 K Street, NW Suite 1100 Washington, DC 20005 John-A.Nolan@ubs.com L__________ (b)(6) .-.-.-.-.-j 2 DOL-17-0281-L-000077 AO 836892 OSEC 000924 1501 K Street, NW Suite 1100 Washington, DC 20005 John-A.Nolan@ubs.com L__________ (b)(6) .-.-.-.-.-j 2 DOL-17-0281-L-000077 AO 836892 OSEC 000924 Mehrens, Nathan P - OSEC Tuesday, February 28, 2017 7:35 AM Palmer, Wayne D - OSEC;Burr, Geoffrey G - OSEC;Conway, Molly E - OSEC Rogers, Jillian B - OSEC Fiduciary Rule Clearance Noted on OIRA Website From: Sent: To: Cc: Subject: FYI-As expected, the OMB/OIRA reg page is showing that their review of the Fiduciary NPRM has been completed. https://www.reginfo.gov/public/do/eoReviewSearch Office of Information and Regulatory Affairs (OIRA) Executive Order Submissions with Review Completed in Last 30 Days February 28, 2017 Department of Labor AGENCY: DOL-EBSA RIN: 1210-AB79 Status: Concluded TITLE: Definition of the Term "Fiduciary" - Delay of Applicability Date STAGE: Proposed Rule ECONOMICALLY SIGNIFICANT: Yes RECEIVED DATE: 02/09/2017 LEGAL DEADLINE: None ** COMPLETED: 02/27/2017 COMPLETED ACTION: Consistent with Change Note: "**" denotes recent change in status. DOL-17-0281-L-000078 AO 836892 OSEC 000925 Mehrens, Nathan P - OSEC Tuesday, February 28, 2017 7:35 AM Palmer, Wayne D - OSEC;Burr, Geoffrey G - OSEC;Conway, Molly E - OSEC Rogers, Jillian B - OSEC Fiduciary Rule Clearance Noted on OIRA Website From: Sent: To: Cc: Subject: FYI-As expected, the OMB/OIRA reg page is showing that their review of the Fiduciary NPRM has been completed. https://www.reginfo.gov/public/do/eoReviewSearch Office of Information and Regulatory Affairs (OIRA) Executive Order Submissions with Review Completed in Last 30 Days February 28, 2017 Department of Labor AGENCY: DOL-EBSA RIN: 1210-AB79 Status: Concluded TITLE: Definition of the Term "Fiduciary" - Delay of Applicability Date STAGE: Proposed Rule ECONOMICALLY SIGNIFICANT: Yes RECEIVED DATE: 02/09/2017 LEGAL DEADLINE: None ** COMPLETED: 02/27/2017 COMPLETED ACTION: Consistent with Change Note: "**" denotes recent change in status. DOL-17-0281-L-000078 AO 836892 OSEC 000925 From: To: Sent: Subject: Geale, NicholasC. - SOL Conway, Molly E - OSEC; Palmer, Wayne D - OSEC; Mehrens, NathanP - OSEC; Burr, Geoffrey G - OSEC 2/28/2017 3:53:56 PM FW: Publicationconfirmed: EBSA's Revised Responseto OIRA Passback on FiduciaryDuty Rule and Exemptions:Notice of Proposed Extensionof ApplicabilityDates and Requestfor Comments FYI. From: Swirsky, Stephanie - ASP Sent: Tuesday, February28, 2017 3:52 PM To: Geale, NicholasC. - SOL; Hugler, Edward - ASAM;Harthill, Susan- SOL; Rooney,Nancy- OSEC;Hauser, Timothy - EBSA Cc: Dawkins, Laura M - ASP; Piacentini,Joseph - EBSA;Turner, Jeffrey - EBSA;Scott, William - SOL; Hall, Lyssa- EBSA; Peters, Pamela - ASP; Khawar, Ali - EBSA;Bissell, Katherine - SOL;Yerxa, ChristopherW - ASAM;Butikofer, James - EBSA; Hansen, Megan D - SOL;Craig, James - SOL; Barr, G. Stephen - OPA;Canary,Joe - EBSA;Conway, Molly E - OSEC;Page, Emily - OASAMDBC;Trupo, Michael - OPA; Rogers,Jillian B - OSEC Subject: Publicationconfirmed: EBSA'sRevisedResponseto OIRA Passbackon FiduciaryDuty Rule and Exemptions: Notice of ProposedExtensionof Applicability Dates and Requestfor Comments Importance: High Thanks to the great wo rk of a lot of people from EBSA, SOL, OPA and OASP, it is now confirmed that the Notice will be posted on the website at the Federal Register tomorro w morning at 8:45 and it will be published on Thursday, March 2. Let me know if yo u have any questions. Thanks everyo ne (now the hard wo rk begins ... ..) Stephanie Stephanie Swirsky Deputy Assistant Secretary for Policy U.S. Department of Labor DOL-17-0281-L-000079 AO 836892 OSEC 000926 From: To: Sent: Subject: Geale, NicholasC. - SOL Conway, Molly E - OSEC; Palmer, Wayne D - OSEC; Mehrens, NathanP - OSEC; Burr, Geoffrey G - OSEC 2/28/2017 3:53:56 PM FW: Publicationconfirmed: EBSA's Revised Responseto OIRA Passback on FiduciaryDuty Rule and Exemptions:Notice of Proposed Extensionof ApplicabilityDates and Requestfor Comments FYI. From: Swirsky, Stephanie - ASP Sent: Tuesday, February28, 2017 3:52 PM To: Geale, NicholasC. - SOL; Hugler, Edward - ASAM;Harthill, Susan- SOL; Rooney,Nancy- OSEC;Hauser, Timothy - EBSA Cc: Dawkins, Laura M - ASP; Piacentini,Joseph - EBSA;Turner, Jeffrey - EBSA;Scott, William - SOL; Hall, Lyssa- EBSA; Peters, Pamela - ASP; Khawar, Ali - EBSA;Bissell, Katherine - SOL;Yerxa, ChristopherW - ASAM;Butikofer, James - EBSA; Hansen, Megan D - SOL;Craig, James - SOL; Barr, G. Stephen - OPA;Canary,Joe - EBSA;Conway, Molly E - OSEC;Page, Emily - OASAMDBC;Trupo, Michael - OPA; Rogers,Jillian B - OSEC Subject: Publicationconfirmed: EBSA'sRevisedResponseto OIRA Passbackon FiduciaryDuty Rule and Exemptions: Notice of ProposedExtensionof Applicability Dates and Requestfor Comments Importance: High Thanks to the great wo rk of a lot of people from EBSA, SOL, OPA and OASP, it is now confirmed that the Notice will be posted on the website at the Federal Register tomorro w morning at 8:45 and it will be published on Thursday, March 2. Let me know if yo u have any questions. Thanks everyo ne (now the hard wo rk begins ... ..) Stephanie Stephanie Swirsky Deputy Assistant Secretary for Policy U.S. Department of Labor DOL-17-0281-L-000079 AO 836892 OSEC 000926 From: To: Sent: Subject: Mehrens, Nathan P - OSEC Palmer, Wayne D - OSEC; Conway, Molly E - OSEC; Geale, Nicholas C. - SOL; Burr, Geoffrey G OSEC 2/28/2017 6:57:44 PM Re: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments None here. On: 28 Febrnary 2017 18:53, "Palmer, Wayne D- OSEC" ~ Nor here. (b}(6} jwrote: o-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. From: Conway, Molly E - OSEC Sent: Tuesday, February 28, 2017 6:36 PM To: Geale, Nicholas C. - SOL; Mehrens, Nathan P - OSEC; Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Subject: RE: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments None here From: Geale, Nicholas C. - SOL Sent: Tuesday, February 28, 2017 6:33 PM To: Conway, Molly E - OSEC; Mehrens, Nathan P - OSEC; Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Subject: FW: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments A ny concerns w ith them po sting it? From: Hauser, Timothy - EBSA Sent: Tuesday, February 28, 2017 6:16 PM To: Swirsky, Stephanie - ASP; Harthill, Susan - SOL; Hugler, Edward - ASAM; Geale, Nicholas C. - SOL Cc: Hauser, Timothy - EBSA Subject: RE: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments W e plan to po st thi s on o ur w eb site w hen it go es o n the table to morro w. but plea se let me know if I'm mi staken . I ass ume that' s still everybo dy's preference , From: Swirsky, Stephanie - ASP Sent: Tuesday, February 28, 2017 4:01 PM To: Geale, Nicholas C. - SOL; Hugler, Edward - ASAM; Harthill, Susan - SOL; Rooney, Nancy - OSEC; Hauser, Timothy - EBSA Cc: Dawkins, Laura M - ASP; Piacentini, Joseph - EBSA; Turner, Jeffrey - EBSA; Scott, William - SOL; Hall, Lyssa - EBSA; Peters, Pamela - ASP; Khawar, Ali - EBSA; Bissell, Katherine - SOL; Yerxa, Christopher W - ASAM; Butikofer, James - EBSA; Hansen, Megan D - SOL; Craig, James - SOL; Barr, G. Stephen - OPA; Canary, Joe - EBSA; Conway, Molly E - OSEC; Page, Emily - OASAM DBC; Trupo, Michael - OPA; Rogers, Jillian B - OSEC Subject: RE: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments O h, and the 15-da y co mment period end s on March 17 . From: Swirsky, Stephanie - ASP DOL-17-0281-L-000080 AO 836892 OSEC 000927 From: To: Sent: Subject: Mehrens, Nathan P - OSEC Palmer, Wayne D - OSEC; Conway, Molly E - OSEC; Geale, Nicholas C. - SOL; Burr, Geoffrey G OSEC 2/28/2017 6:57:44 PM Re: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments None here. On: 28 Febrnary 2017 18:53, "Palmer, Wayne D- OSEC" ~ Nor here. (b}(6} jwrote: o-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. From: Conway, Molly E - OSEC Sent: Tuesday, February 28, 2017 6:36 PM To: Geale, Nicholas C. - SOL; Mehrens, Nathan P - OSEC; Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Subject: RE: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments None here From: Geale, Nicholas C. - SOL Sent: Tuesday, February 28, 2017 6:33 PM To: Conway, Molly E - OSEC; Mehrens, Nathan P - OSEC; Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Subject: FW: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments A ny concerns w ith them po sting it? From: Hauser, Timothy - EBSA Sent: Tuesday, February 28, 2017 6:16 PM To: Swirsky, Stephanie - ASP; Harthill, Susan - SOL; Hugler, Edward - ASAM; Geale, Nicholas C. - SOL Cc: Hauser, Timothy - EBSA Subject: RE: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments W e plan to po st thi s on o ur w eb site w hen it go es o n the table to morro w. but plea se let me know if I'm mi staken . I ass ume that' s still everybo dy's preference , From: Swirsky, Stephanie - ASP Sent: Tuesday, February 28, 2017 4:01 PM To: Geale, Nicholas C. - SOL; Hugler, Edward - ASAM; Harthill, Susan - SOL; Rooney, Nancy - OSEC; Hauser, Timothy - EBSA Cc: Dawkins, Laura M - ASP; Piacentini, Joseph - EBSA; Turner, Jeffrey - EBSA; Scott, William - SOL; Hall, Lyssa - EBSA; Peters, Pamela - ASP; Khawar, Ali - EBSA; Bissell, Katherine - SOL; Yerxa, Christopher W - ASAM; Butikofer, James - EBSA; Hansen, Megan D - SOL; Craig, James - SOL; Barr, G. Stephen - OPA; Canary, Joe - EBSA; Conway, Molly E - OSEC; Page, Emily - OASAM DBC; Trupo, Michael - OPA; Rogers, Jillian B - OSEC Subject: RE: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments O h, and the 15-da y co mment period end s on March 17 . From: Swirsky, Stephanie - ASP DOL-17-0281-L-000080 AO 836892 OSEC 000927 Sent: Tuesday, February 28, 2017 3:52 PM To: Geale, Nicholas C. - SOL; Hugler, Edward - ASAM; Harthill, Susan - SOL; Rooney, Nancy - OSEC; Hauser, Timothy - EBSA Cc: Dawkins, Laura M - ASP; Piacentini, Joseph - EBSA; Turner, Jeffrey - EBSA; Scott, William - SOL; Hall, Lyssa - EBSA; Peters, Pamela - ASP; Khawar, Ali - EBSA; Bissell, Katherine - SOL; Yerxa, Christopher W - ASAM; Butikofer, James - EBSA; Hansen, Megan D - SOL; Craig, James - SOL; Barr, G. Stephen - OPA; Canary, Joe - EBSA; Conway, Molly E - OSEC; Page, Emily - OASAM DBC; Trupo, Michael - OPA; Rogers, Jillian B - OSEC Subject: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments Importance: High Thanks to the great work of a lot of people from EBSA, SO L, OPA and OASP, it is now confirmed that the Notice will be po sted on the website at the Federal Register tomorro w morning at 8:45 and it will be published on Thursday, March 2. Let me know if you have any questions. Thanks everyone (now the hard work begins ..... ) Stephanie Stephanie Swirsky Deputy Assistant Secretary for Policy U.S. Department of Labor I (b)(6) i i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ DOL-17-0281-L-000081 AO 836892 OSEC 000928 Sent: Tuesday, February 28, 2017 3:52 PM To: Geale, Nicholas C. - SOL; Hugler, Edward - ASAM; Harthill, Susan - SOL; Rooney, Nancy - OSEC; Hauser, Timothy - EBSA Cc: Dawkins, Laura M - ASP; Piacentini, Joseph - EBSA; Turner, Jeffrey - EBSA; Scott, William - SOL; Hall, Lyssa - EBSA; Peters, Pamela - ASP; Khawar, Ali - EBSA; Bissell, Katherine - SOL; Yerxa, Christopher W - ASAM; Butikofer, James - EBSA; Hansen, Megan D - SOL; Craig, James - SOL; Barr, G. Stephen - OPA; Canary, Joe - EBSA; Conway, Molly E - OSEC; Page, Emily - OASAM DBC; Trupo, Michael - OPA; Rogers, Jillian B - OSEC Subject: Publication confirmed: EBSA's Revised Response to OIRA Passback on Fiduciary Duty Rule and Exemptions: Notice of Proposed Extension of Applicability Dates and Request for Comments Importance: High Thanks to the great work of a lot of people from EBSA, SO L, OPA and OASP, it is now confirmed that the Notice will be po sted on the website at the Federal Register tomorro w morning at 8:45 and it will be published on Thursday, March 2. Let me know if you have any questions. Thanks everyone (now the hard work begins ..... ) Stephanie Stephanie Swirsky Deputy Assistant Secretary for Policy U.S. Department of Labor I (b)(6) i i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ DOL-17-0281-L-000081 AO 836892 OSEC 000928 From: To: Sent: Subject: Lineberger, Timothy L - OSEC Palmer, Wayne D - OSEC 2/28/2017 5:00:12 PM Bullet Proposed bullet: Let know me know if you are ok with this and/or if you have anything else to add. Thanks, --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] DOL-17-0281-L-000082 AO 836892 OSEC 000929 From: To: Sent: Subject: Lineberger, Timothy L - OSEC Palmer, Wayne D - OSEC 2/28/2017 5:00:12 PM Bullet Proposed bullet: Let know me know if you are ok with this and/or if you have anything else to add. Thanks, --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] DOL-17-0281-L-000082 AO 836892 OSEC 000929 Meyer, Kevin M - OPA Gamble, Bennett B - OPA; Versen, Joseph H - OPA; Pegues, Jermaine - OPA; Eaves, Beverly Trupo, Michael - OPA; Forrester, Jonathan - OPA; OPA; r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-1i;){sY-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-1 From: To: CC: Sent: Subject: Attachments: Brevard, Rosetta - OPA Barr, G. Stephen - OPA; Botwin, Sharon - OPA; Bohnert, Suzanne - OPA; Rogers, Jillian B - OSEC; Lineberger, Timothy L - OSEC; McCarthy, Edward T - OPA; Bailey, Andy - OPA; McGinnis, Laura K OPA; Anderson, Byron E - OSEC; Bozzuto, Robert F - OSEC; Burr, Geoffrey G - OSEC; Cheewing, Todd M - OSEC; Ellis, Curtis W - OSEC; Evans, Eric L - OSEC; Gardner, Janelle A- OSEC; Kopley, Russell M - OSEC; Mannix, Patrick M - OSEC; Mehrens, Nathan P - OSEC; O'Connell, James M OSEC; Palmer, Wayne D - OSEC; [~~~~~~~~~~~~~~~~~~~~~~~~j~)_@~~~~~~~~~~~~~~~~~~~~~~~~J Smith, Gavin J - OSEC; Zelden, Mark A- OSEC 3/1/2017 9:35:20 AM RE: Issuance alert, re: Department's EBSA announces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Fl NAL_ 17-293-NAT_EBSA_ COi Extension.docx Attachment added. Pardon the haste. Kevin M. Meyer Public Affairs Specialist U.S. Department of Labor- OPA Tel: :____________ (b)(6) _________ ___! From: Meyer, Kevin M - OPA Sent: Wednesday, March 01, 2017 9:34 AM r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-! To: Gamble, Bennett B - OPA; Versen, Joseph H - OPA; Pegues, Jermaine - OPA i (b )(6) :Eaves, Beverly - 0 PA ( Trupo, Mich~e I - 0 P Forrester, Jo nathan - 0 PA CTR L_________________________ (b)(6) -.-.-.-.-.-.-.-.-.-.-.-.-:Brevard, Rosetta - 0 PA '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." i Rogers, Jillian B Cc: Barr, G. Stephen - OPA; Botwin, Sharon - OPA; Bohnert, Suzanne - OPAL.,.,.,.,.,.,.,.,.,.,Jb)(SL___________________ OSEC; Lineberg~_r Tl1!1Qt.t,y_ __ L.__: __ Q_?_!::_Q~.-M_~Q?lrthy, Edward T OPA; Bailey, Andy OPA [_.:..:..:..:..:..:..:_3~i(sf_.:..:..:..:..:..:..:J McGinnis, __ 1 (_b)(6)____________________ __JAnderson, Byron E - OSEC; Bozzuto, Robert F - OSEC; Burr, Geoffrey G - OSEC; Laura K - OPA t_____________________ Cheewing, Todd M - OSEC; Ellis, Curtis W - OSEC; Evans, Eric L - OSEC; Gardner, Janelle A- OSEC; Kopley, Russell M OSEC; Mannix, Patrick M - OSEC; Mehrens, Nathan P - OSEC; O'Connell, James M - OSEC; Palmer, Wayne D - OSEC; :.-.-.-.-.-.-.-.-.-.-.-.-.-1i;iisY-.-.-.-.-.-.-.-.-.-.-.-.-: Smith, Gavin J - OSEC; Zelden, Mark A - OSEC [.:..:..:..:..:..:..:..:..:."I~@[..:..:..:..:~.-:..:..:..~i_L:~:~:~:~:~:~:~:~:~:~:~:~ ~-----------(tlY(Gy--.-.-.-. Subject: Issuance alert, re: Department's EBSA announces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Please find attached the final version of an EBSA news release (17-293-NAT) in which the U.S. Department of Labor's Employee Benefits Security Administration announces a proposed extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption, from April 10 to June 9, 2017. National and Regional issuance is IMMEDIATE. Mike Trupo is the contact. Kevin: Regions: Please issue to the following lists/beats: Labor, WH Contacts and Retirement Please issue in ALL REGIONS IMMEDIATELY. DOL-17-0281-L-000083 AO 836892 OSEC 000930 Meyer, Kevin M - OPA Gamble, Bennett B - OPA; Versen, Joseph H - OPA; Pegues, Jermaine - OPA; Eaves, Beverly Trupo, Michael - OPA; Forrester, Jonathan - OPA; OPA; r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-1i;){sY-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-1 From: To: CC: Sent: Subject: Attachments: Brevard, Rosetta - OPA Barr, G. Stephen - OPA; Botwin, Sharon - OPA; Bohnert, Suzanne - OPA; Rogers, Jillian B - OSEC; Lineberger, Timothy L - OSEC; McCarthy, Edward T - OPA; Bailey, Andy - OPA; McGinnis, Laura K OPA; Anderson, Byron E - OSEC; Bozzuto, Robert F - OSEC; Burr, Geoffrey G - OSEC; Cheewing, Todd M - OSEC; Ellis, Curtis W - OSEC; Evans, Eric L - OSEC; Gardner, Janelle A- OSEC; Kopley, Russell M - OSEC; Mannix, Patrick M - OSEC; Mehrens, Nathan P - OSEC; O'Connell, James M OSEC; Palmer, Wayne D - OSEC; [~~~~~~~~~~~~~~~~~~~~~~~~j~)_@~~~~~~~~~~~~~~~~~~~~~~~~J Smith, Gavin J - OSEC; Zelden, Mark A- OSEC 3/1/2017 9:35:20 AM RE: Issuance alert, re: Department's EBSA announces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Fl NAL_ 17-293-NAT_EBSA_ COi Extension.docx Attachment added. Pardon the haste. Kevin M. Meyer Public Affairs Specialist U.S. Department of Labor- OPA Tel: :____________ (b)(6) _________ ___! From: Meyer, Kevin M - OPA Sent: Wednesday, March 01, 2017 9:34 AM r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-! To: Gamble, Bennett B - OPA; Versen, Joseph H - OPA; Pegues, Jermaine - OPA i (b )(6) :Eaves, Beverly - 0 PA ( Trupo, Mich~e I - 0 P Forrester, Jo nathan - 0 PA CTR L_________________________ (b)(6) -.-.-.-.-.-.-.-.-.-.-.-.-:Brevard, Rosetta - 0 PA '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." i Rogers, Jillian B Cc: Barr, G. Stephen - OPA; Botwin, Sharon - OPA; Bohnert, Suzanne - OPAL.,.,.,.,.,.,.,.,.,.,Jb)(SL___________________ OSEC; Lineberg~_r Tl1!1Qt.t,y_ __ L.__: __ Q_?_!::_Q~.-M_~Q?lrthy, Edward T OPA; Bailey, Andy OPA [_.:..:..:..:..:..:..:_3~i(sf_.:..:..:..:..:..:..:J McGinnis, __ 1 (_b)(6)____________________ __JAnderson, Byron E - OSEC; Bozzuto, Robert F - OSEC; Burr, Geoffrey G - OSEC; Laura K - OPA t_____________________ Cheewing, Todd M - OSEC; Ellis, Curtis W - OSEC; Evans, Eric L - OSEC; Gardner, Janelle A- OSEC; Kopley, Russell M OSEC; Mannix, Patrick M - OSEC; Mehrens, Nathan P - OSEC; O'Connell, James M - OSEC; Palmer, Wayne D - OSEC; :.-.-.-.-.-.-.-.-.-.-.-.-.-1i;iisY-.-.-.-.-.-.-.-.-.-.-.-.-: Smith, Gavin J - OSEC; Zelden, Mark A - OSEC [.:..:..:..:..:..:..:..:..:."I~@[..:..:..:..:~.-:..:..:..~i_L:~:~:~:~:~:~:~:~:~:~:~:~ ~-----------(tlY(Gy--.-.-.-. Subject: Issuance alert, re: Department's EBSA announces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Please find attached the final version of an EBSA news release (17-293-NAT) in which the U.S. Department of Labor's Employee Benefits Security Administration announces a proposed extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption, from April 10 to June 9, 2017. National and Regional issuance is IMMEDIATE. Mike Trupo is the contact. Kevin: Regions: Please issue to the following lists/beats: Labor, WH Contacts and Retirement Please issue in ALL REGIONS IMMEDIATELY. DOL-17-0281-L-000083 AO 836892 OSEC 000930 Rosetta/Jon: Please upload to the Web. Jermaine: Please upload to the log. DOL-17-0281-L-000084 AO 836892 OSEC 000931 Rosetta/Jon: Please upload to the Web. Jermaine: Please upload to the log. DOL-17-0281-L-000084 AO 836892 OSEC 000931 Brevard, Rosetta - OPA Wednesday, March 1, 2017 8:52 AM Meyer, Kevin M - OPA;Gamble,Bennett B - OPA;Versen,Joseph H - OPA;Pegues, Jermaine - OPA;Eaves,Beverly - [.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-(bi(sf.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.7 Michael From: Sent: To: - OPA;Forrester,Jonathan - OPA Barr, G. Stephen - OPA;Botwin, Sharon - OPA;Bohnert, Suzanne - OPA;Rogers,Jillian B - OSEC;Lineberger,Timothy L - OSEC;McCarthy,Edward T - OPA;Bailey,Andy OPA;McGinnis,Laura K - OPA;Anderson, Byron E - OSEC;Bozzuto,Robert F OSEC;Burr,Geoffrey G - OSEC;Cheewing,Todd M - OSEC;Ellis,Curtis W - OSEC;Evans, Eric L - OSEC;Gardner,Janelle A - OSEC;Kopley,RussellM - OSEC;Mannix,Patrick M OSEC;Mehrens,Nathan P - OSEC;O'Connell,James M - OSEC;Palmer,Wayne D r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-itiiisi.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.7 Gavin J - 0 SEC;ZeIden, Mark A - 0 SEC Cc: RE:Issuancealert, re: Department's EBSAannounces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Subject: https://www.dol.gov/newsroom/releases/ebsa/ebsa20170301 This is complete . From: Meyer, Kevin M - OPA Sent: Wednesday, March 01, 2017 9:34 AM ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., To: Gamble, Bennett _B_-OPA~.Versen,_JosephH - OPA; Pegues,Jermaine - OPA ~ (b)(6) i Eaves, Beverly - OPAL (b)(6) j; [~~~~~~~~~~~~~~~~~~~~~~~~~J~j(iiL~~~~~~~~~~~~~~~~~~~~~~~~~JTruno_._hl[c r.-.-.-.-.-.-.-.-.-.-.b.-.-6.-.-.-.-.-.-.-.-.-.-.1; Forrester, Jonathan - OPA CTRi (b)(6) I; Brevard, Rosetta - OPA . ( )( ) '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. -.-.-.-.-.-.-.-.-.-.-'-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., L-cc.:-.Baff;-G:-stepnen-.:.-dpA; Botwin, Sharon - OPA; Bohnert, Suzanne - OPA[______________________ ,.{.l:lJ{~L. ____________________ l.BQ~ers,Jillian B - OSEC;Lineb~rqerJTimothy L_-_OSEC.Mc 1/2 arthy, Edward T - OPA; Bailey, Andy - OPA G (b)(6) !;McGinnis, .-.-.-.-. _____ j Anderson, Byron E - OSEC;Bozzuto, RoberfF::-.osEc;.B"Cirf~-.Geoffrey GLaura K - OPAl,-.-.-.-.-.-.-.-.-.-.-.J_!JX~.L. OSEC;Cheewing, Todd M - OSEC;Ellis, Curtis W - OSEC;Evans, Eric L - OSEC;Gardner, Janelle A - OSEC;Kopley, Russell M - OSEC;Mannix, Patrick M - OSEC;Mehrens, Nathan P - OSEC;O'Connell, James M - OSEC;Palmer, Wayne D Smith, Gavin J - OSEC;Zelden, Mark A - OSEC OSEC;:.-.-.-.-.-.-.-.-.-.-.-.-.1frfisi.-.-.-.-.-.-.-.-.-.-.-.-.: Subject: Issuance alert, re: Department's EBSAannounces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Please find attached the final version of an EBSA news release (17-293-NAT) in which the U.S. Department of Labor's Employee Benefits Security Administration announces a proposed extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption, from April 10 to June 9, 2017. National and Regional issuance is IMMEDIATE. Mike Trupo is the contact. Kevin: Please issue to the followi ng lists/beats Regions: Please issue Rosetta/Jon: Please upload to the Web. : Labor, WH Contacts and Retirement ALL REGIONS IMMEDIATELY. DOL-17-0281-L-000085 AO 836892 OSEC 000932 Brevard, Rosetta - OPA Wednesday, March 1, 2017 8:52 AM Meyer, Kevin M - OPA;Gamble,Bennett B - OPA;Versen,Joseph H - OPA;Pegues, Jermaine - OPA;Eaves,Beverly - [.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-(bi(sf.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.7 Michael From: Sent: To: - OPA;Forrester,Jonathan - OPA Barr, G. Stephen - OPA;Botwin, Sharon - OPA;Bohnert, Suzanne - OPA;Rogers,Jillian B - OSEC;Lineberger,Timothy L - OSEC;McCarthy,Edward T - OPA;Bailey,Andy OPA;McGinnis,Laura K - OPA;Anderson, Byron E - OSEC;Bozzuto,Robert F OSEC;Burr,Geoffrey G - OSEC;Cheewing,Todd M - OSEC;Ellis,Curtis W - OSEC;Evans, Eric L - OSEC;Gardner,Janelle A - OSEC;Kopley,RussellM - OSEC;Mannix,Patrick M OSEC;Mehrens,Nathan P - OSEC;O'Connell,James M - OSEC;Palmer,Wayne D r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-itiiisi.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.7 Gavin J - 0 SEC;ZeIden, Mark A - 0 SEC Cc: RE:Issuancealert, re: Department's EBSAannounces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Subject: https://www.dol.gov/newsroom/releases/ebsa/ebsa20170301 This is complete . From: Meyer, Kevin M - OPA Sent: Wednesday, March 01, 2017 9:34 AM ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., To: Gamble, Bennett _B_-OPA~.Versen,_JosephH - OPA; Pegues,Jermaine - OPA ~ (b)(6) i Eaves, Beverly - OPAL (b)(6) j; [~~~~~~~~~~~~~~~~~~~~~~~~~J~j(iiL~~~~~~~~~~~~~~~~~~~~~~~~~JTruno_._hl[c r.-.-.-.-.-.-.-.-.-.-.b.-.-6.-.-.-.-.-.-.-.-.-.-.1; Forrester, Jonathan - OPA CTRi (b)(6) I; Brevard, Rosetta - OPA . ( )( ) '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. -.-.-.-.-.-.-.-.-.-.-'-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., L-cc.:-.Baff;-G:-stepnen-.:.-dpA; Botwin, Sharon - OPA; Bohnert, Suzanne - OPA[______________________ ,.{.l:lJ{~L. ____________________ l.BQ~ers,Jillian B - OSEC;Lineb~rqerJTimothy L_-_OSEC.Mc 1/2 arthy, Edward T - OPA; Bailey, Andy - OPA G (b)(6) !;McGinnis, .-.-.-.-. _____ j Anderson, Byron E - OSEC;Bozzuto, RoberfF::-.osEc;.B"Cirf~-.Geoffrey GLaura K - OPAl,-.-.-.-.-.-.-.-.-.-.-.J_!JX~.L. OSEC;Cheewing, Todd M - OSEC;Ellis, Curtis W - OSEC;Evans, Eric L - OSEC;Gardner, Janelle A - OSEC;Kopley, Russell M - OSEC;Mannix, Patrick M - OSEC;Mehrens, Nathan P - OSEC;O'Connell, James M - OSEC;Palmer, Wayne D Smith, Gavin J - OSEC;Zelden, Mark A - OSEC OSEC;:.-.-.-.-.-.-.-.-.-.-.-.-.1frfisi.-.-.-.-.-.-.-.-.-.-.-.-.: Subject: Issuance alert, re: Department's EBSAannounces a proposed extension of the applicability dates of the fiduciary rule, related exemptions, including the Best Interest Contract Exemption Please find attached the final version of an EBSA news release (17-293-NAT) in which the U.S. Department of Labor's Employee Benefits Security Administration announces a proposed extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption, from April 10 to June 9, 2017. National and Regional issuance is IMMEDIATE. Mike Trupo is the contact. Kevin: Please issue to the followi ng lists/beats Regions: Please issue Rosetta/Jon: Please upload to the Web. : Labor, WH Contacts and Retirement ALL REGIONS IMMEDIATELY. DOL-17-0281-L-000085 AO 836892 OSEC 000932 Jermaine: Please upload to the log. DOL-17-0281-L-000086 Jermaine: Please upload to the log. DOL-17-0281-L-000086 From: To: Sent: Subject: Lineberger, Timothy L - OSEC Palmer, Wayne D - OSEC 3/1/2017 4:27:16 PM RE: Bullet Proposed bullet(s): {b){S) Let know me know if you are ok with this and/or if you have anything else to add. Thanks, --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] DOL-17-0281-L-000087 AO 836892 OSEC 000934 From: To: Sent: Subject: Lineberger, Timothy L - OSEC Palmer, Wayne D - OSEC 3/1/2017 4:27:16 PM RE: Bullet Proposed bullet(s): {b){S) Let know me know if you are ok with this and/or if you have anything else to add. Thanks, --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] DOL-17-0281-L-000087 AO 836892 OSEC 000934 Palmer, Wayne D - OSEC Monday, March 6, 2017 2:32 PM Geale, Nicholas C. - SOL RE:rulemaking inquiries From: Sent: To: Subject: I think that will work. Thanks. From: Geale, Nicholas C. - SOL Sent: Monday, March 06, 2017 3: 10 PM To: Palmer, Wayne D - OSEC Subject: FW: rulemaking inquiries How' s thi s? -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i i Not Responsive I i i i I i i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i Sincerely, From: Harthill, Susan - SOL Sent: Friday, March 03, 2017 5:40 PM To: Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Cc: Geale, Nicholas C. - SOL; Swirsky, Stephanie - ASP Subject: rulemaking inquiries Geoff & Wayne - below is suggested language to use when responding to inquiries regarding DOL rules that are in the formal comment period. As of this moment, that is COi and beryllium. I leave to you to circulate to other beach head team members. Please feel free to call me or Stephanie if you have questions or need further guidance. Thanks, Susan DOL-17-0281-L-000088 AO 836892 OSEC 000935 Palmer, Wayne D - OSEC Monday, March 6, 2017 2:32 PM Geale, Nicholas C. - SOL RE:rulemaking inquiries From: Sent: To: Subject: I think that will work. Thanks. From: Geale, Nicholas C. - SOL Sent: Monday, March 06, 2017 3: 10 PM To: Palmer, Wayne D - OSEC Subject: FW: rulemaking inquiries How' s thi s? -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i i Not Responsive I i i i I i i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i Sincerely, From: Harthill, Susan - SOL Sent: Friday, March 03, 2017 5:40 PM To: Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Cc: Geale, Nicholas C. - SOL; Swirsky, Stephanie - ASP Subject: rulemaking inquiries Geoff & Wayne - below is suggested language to use when responding to inquiries regarding DOL rules that are in the formal comment period. As of this moment, that is COi and beryllium. I leave to you to circulate to other beach head team members. Please feel free to call me or Stephanie if you have questions or need further guidance. Thanks, Susan DOL-17-0281-L-000088 AO 836892 OSEC 000935 Susan Harthill Deputy Solicitor for National Operations Office of the Solicitor U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, D.C. 20210 j ______ (b)(6} _____j __________________________ _ [_________________________________ {b_){_6) _________________________________ I Thank you for your interest in the [COi/BERYLLiUM] rulemaking. To ensure that your thoughts are considered by the rulemaking staff, I strongly recommend that you submit a formal comment, which you can do at the following link: COi LINK: https://www.regulations.gov/document?D=EBSA-2010-0050-3491 Not Responsive Sincerely, 2 DOL-17-0281-L-000089 AO 836892 OSEC 000936 Susan Harthill Deputy Solicitor for National Operations Office of the Solicitor U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, D.C. 20210 j ______ (b)(6} _____j __________________________ _ [_________________________________ {b_){_6) _________________________________ I Thank you for your interest in the [COi/BERYLLiUM] rulemaking. To ensure that your thoughts are considered by the rulemaking staff, I strongly recommend that you submit a formal comment, which you can do at the following link: COi LINK: https://www.regulations.gov/document?D=EBSA-2010-0050-3491 Not Responsive Sincerely, 2 DOL-17-0281-L-000089 AO 836892 OSEC 000936 From: Sent: To: Cc: Subject: Palmer, Wayne D - OSEC Monday, March 6, 2017 2:57 PM Geale, Nicholas C. - SOL Swirsky, Stephanie - ASP;Harthill, Susan - SOL;Burr, Geoffrey G - OSEC RE: rulemaking inquiries Thanks, all. I w ill distr ibute to the beachhead tea m. From: Geale, Nicholas C. - SOL Sent: Monday, March 06, 2017 3:37 PM To: Palmer, Wayne D - OSEC Cc: Swirsky, Stephanie - ASP; Harthill, Susan - SOL; Burr, Geoffrey G - OSEC Subject: RE: rulemaking inquiries Wayne We ta lked it over and came up w ith this: Sincerely, From: Palmer, Wayne D - OSEC Sent: Monday, March 06, 2017 9:38 AM To: Harthill, Susan - SOL; Burr, Geoffrey G - OSEC Cc: Geale, Nicholas C. - SOL; Swirsky, Stephanie - ASP Subject: RE: rulemaking inquiries . .----~-~~-~-~~!--~-~-s-~-~!--~-~_t __ ~?-~.~~--i!_.?.!:.E?.~_s_i_?._l!:_!?_j I ! { b) {5) !.-.-.-.-, ,______ ronsr----------------------------------1 i.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j DOL-17-0281-L-000090 AO 836892 OSEC 000937 From: Sent: To: Cc: Subject: Palmer, Wayne D - OSEC Monday, March 6, 2017 2:57 PM Geale, Nicholas C. - SOL Swirsky, Stephanie - ASP;Harthill, Susan - SOL;Burr, Geoffrey G - OSEC RE: rulemaking inquiries Thanks, all. I w ill distr ibute to the beachhead tea m. From: Geale, Nicholas C. - SOL Sent: Monday, March 06, 2017 3:37 PM To: Palmer, Wayne D - OSEC Cc: Swirsky, Stephanie - ASP; Harthill, Susan - SOL; Burr, Geoffrey G - OSEC Subject: RE: rulemaking inquiries Wayne We ta lked it over and came up w ith this: Sincerely, From: Palmer, Wayne D - OSEC Sent: Monday, March 06, 2017 9:38 AM To: Harthill, Susan - SOL; Burr, Geoffrey G - OSEC Cc: Geale, Nicholas C. - SOL; Swirsky, Stephanie - ASP Subject: RE: rulemaking inquiries . .----~-~~-~-~~!--~-~-s-~-~!--~-~_t __ ~?-~.~~--i!_.?.!:.E?.~_s_i_?._l!:_!?_j I ! { b) {5) !.-.-.-.-, ,______ ronsr----------------------------------1 i.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j DOL-17-0281-L-000090 AO 836892 OSEC 000937 Sincerely, From: Harthill, Susan - SOL Sent: Friday, March 03, 2017 5:40 PM To: Burr, Geoffrey G - OSEC; Palmer, Wayne D - OSEC Cc: Geale, Nicholas C. - SOL; Swirsky, Stephanie - ASP Subject: rulemaking inquiries Geoff & Wayne - below is suggested language to use when responding to inquiries regarding DOL rules that are in the formal comment period. As of this moment, that is COi and beryllium. I leave to you to circulate to other beach head team members. Please feel free to call me or Stephanie if you have questions or need further guidance. Thanks, Susan Susan Harthill Deputy Solicitor for National Operations Office of the Solicitor U.S. Department of Labor 200 Constitution Avenue, N.W. 2 DOL-17-0281-L-000091 AO 836892 OSEC 000938 Washington, D.C. 20210 .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. ' ' J~l(_~l _______________ l I_______________ .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 ; ; ; ; noughts Sincerely, 3 DOL-17-0281-L-000092 AO 836892 OSEC 000939 From: To: CC: Sent: Subject: Attachments: Geale, Nicholas C. - SOL Hugler, Edward - ASAM Conway, Molly E - OSEC; Mehrens, Nathan P - OSEC; Palmer, Wayne D - OSEC; Burr, Geoffrey G - OSEC 3/7/2017 7:15:08 PM FW: COi Temporary Enforcement Policy 03072017 (2) (2) COi Temporary Enforcement Policy 03072017 (2) (2).docx Ed, b)_ (5)_______ l- _l".s_ ~?_t':~-~e,l? :'f,_ ic: _El~,ll _p_lJ!_t?Qtll111P.?'~'X _E>':1f _?r~e, _f11 _EUR>~tp_?li _cx_L________________ ( -Nick From: Hauser, Timothy - EBSA Sent: Tuesday, March 07, 2017 6:24 PM To: Geale, Nicholas C. - SOL; Scott, William - SOL Cc: Hauser, Timothy - EBSA; Canary, Joe - EBSA; Khawar, Ali - EBSA; Trupo, Michael - OPA; Swirsky, Stephanie - ASP; Harthill, Susan - SOL Subject: COi Temporary Enforcement Policy 03072017 (2) (2) .-.----~-!t~l].c, .-1-.-.-.-.-.-.-.- DOL-17-0281-L-000111 AO 836892 OSEC 000958 From: Sent: To: Cc: Subject: Palmer, Wayne D - OSEC Tuesday, March 28, 2017 12:41 PM Hugler, Edward - ASAM;Yerxa, Christopher W - ASAM Hugler, Edward - ASAM Re: Call w/ Rep. Wagner and Acting Secretary Thank you! On: 28 March 2017 13:30, "Bugler, Edward - ASAM" {_ __________________ (b)(6) .-.-.-.-.-.-.-.-.j wrote: We'll handle. Ed Hugler Deputy Assistant Secretary for Operations From: Palmer, Wayne D - OSEC Sent: Tuesday, March 28, 2017 1:23 PM To: Hugler, Edward - ASAM; Yerxa, Christopher W - ASAM Subject: FW: Call w/ Rep. Wagner and Acting Secretary Gent lemen, Can I pass this along to you for handling? From: Rust, Erik [ mai Ito :i -.-.-.-.-.-.-.-.-.-.-._(~_!(~) _______________________ .l Sent: Tuesday, March 28, 2017 12:51 PM To: Palmer, Wayne D - OSEC Subject: Call w/ Rep. Wagner and Acting Secretary Hey Wayne, I don't believe we've met before, but I wanted to reach out to you regarding the current status of the DOL fiduciary rule delay. Rep. Wagner has been a leading voice on this issue in Congress, and she has spoken with Acting Secretary Hugler a few times so far this year on the issue. I wanted to check in to see if we could get a call arranged sometime today between the two to discuss. Please let me know if this would be possible. Thanks Erik Rust Senior Policy Advisor Congresswoman Ann Wagner (MO-02) 435 Cannon HOB T . :._______ _Jb)t6l _________ ! Cl DOL-17-0281-L-000112 AO 836892 OSEC 000959 From: To: CC: Sent: Subject: Gardner, Janelle A - OSEC Palmer, Wayne D - OSEC Geale, Nicholas C. - SOL; Conway, Molly E - OSEC 5/12/2017 11:03:22 AM RE: Call w/ Rep. Wagner and Acting Secretary J~)J?.t _______________ r-.---~-~-~-!--~-~-~_9___ ~_p __ Y.Xi!b ___ ~r~-~===-L ________________________________ _J______ ! (b)(5) I I L.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.! Janelle Gardner Department of Labor From: Palmer, Wayne D - OSEC Sent: Friday, May 12, 2017 10:38 AM To: Gardner, Janelle A - OSEC Subject: FW: Call w/ Rep. Wagner and Acting Secretary i From: Rust, Erik [mailto:i______________________ (b)(G) _____________________ Sent: Friday, May 12, 2017 10:32 AM To: Palmer, Wayne D - OSEC Subject: RE: Call w/ Rep. Wagner and Acting Secretary Hey Wayne, I've been trying to get a call scheduled between Rep. Wagner and Secreta ry A costa for the past co uple of days but haven't heard back from the scheduling office. I tried emailing Emily Page today but got an out of office reply. If there is anything yo u can do to help get this set up, it would be greatl y appreciated. It is regarding the DOL fiduciar y issue, and the Congre ssw oman views this as a time sensitive matter. Thank s From: Rust, Erik Sent: Tuesday, March__ 281.2017_1?:51 PM To: 'paImel__________________ (b )(6) .-.-.-.-.-.-.-___i Subject: Call w/ Rep. Wagner and Acting Secretary Hey Wayne, I don't believe we've met before, but I wanted to reach out to you regarding the current status of the DOL fiduciary rule delay. Rep. Wagner has been a leading voice on this issue in Congress, and she has spoken with Acting Secretary Hugler a few times so far this year on the issue. I wanted to check in to see if we could get a call arranged sometime today between the two to discuss. Please let me know if this would be possible. Thanks E1ikRust Senior Policy Advisor Wagner (MO-02) Congress,,o rnan Al111 -IJ5 Cal1llonH OB DOL-17-0281-L-000113 AO 836892 OSEC 000960 L. DOL-17-0281-L-000114 r-.-.-.-.-.-.-.-.-.-.-.-.-tiii"{sj-.-.-.-.-.-.-.-.-.-.-.-.-: From: Teller, Paul S. EOP/WHO Sent: Tuesday, March 28, 2017 1:20 PM Palmer, Wayne D - OSEC Mashburn, John K. EOP/WHO Re: DOL contact? To: Cc: Subject: Ok thanks good sir Paul Teller Special Assistant to the President for Legislative Affairs !_________________________________ (b)(6).-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-_i On Mar 28, 2017, at 2: 17 PM, Palmer, Wayne D - OSEC r.---~-~-:.}_?~-~--1~)~i)~.L.-.-.-.-.-.-.-.-.-.-.fi?.){.~L. _________________ Whitney Dunn l.__ ________________ ___(~)_(_~)-.-.-.-.-.-.-.-.-.-___i Gary Hughes _j Subject: Re: ACLI meeting request/Alex Acosta Wayne, Thank you for your quick reply and for referring our meeting request to the scheduler. Very much appreciated. We stand ready to assist. DOL-17-0281-M-000017 AO 836892 OSEC 000981 Kind regards, Maurice Perkins Sent from my iPhone ..-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. 4 ' On Apr 19, 2017, at 5:39 PM, Palmer, Wayne D- OSEC {b){6) ' rrote: i.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i Good Afternoon, Maurice. I just wanted to acknowledge receipt of your scheduling request. As yo u state, Dean Acosta cannot engage in any DOL-related meetings with stakeho lders pre-confirmation, but we do have a scheduler who is compiling requests for his consideration if and when the Senate confirms his nomination as Secretary. I forwarded your email to her, to ensure that it gets included in the list of requests for consideration at the appropriate time . Best regards, Wayne Palmer From: Maurice Perkin$ (b)(6) ] Sent: Wednesday,Apr'ir19,2017" 4:44-PM.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' To: Palmer, Wayne D - OSEC Cc: Josh Mauthe; Whitney Dunn; Gary Hughes Subject: ACLI meeting request/Alex Acosta Dear Wayne, Please find attached ACLI's comment letter to the DOL in regards to the definition of the fiduciary rule delay and the President's Executive Memorandum. By way of this email, we are kindly requesting a meeting with Secretary-Elect CEO, Governor Dirk Kempthorne. Acosta and ACLI's President & I am copying Josh Mauthe, Executive Assistant to Governor Kempthorne, to work with you and your staff on possible dates. ACLI and our member companies have been actively engaged with the DOL on the fiduciary rule for years. We would welcome a meeting with Mr. Acosta soon after his confirmation to walk through the importance and possible impact of this rule on our member companies and their policy holders. We would greatly appreciate your help. Please let us know if you have any questions. Thanks, Wayne. Kind regards, Maurice Perkins Maurice A. Perkins A.111111 e 1riica 1111 Co 1.11111 Montana priorities to Acosta. a letter outlining Dear Mr. Acosta: Congratulations on being nominated as the next Secretary of the United States Department of Labor (DOL). I look forward to working with you to ensure that workers in Montana and across the country have the support and protections they deserve while providing small businesses with relief from undue and burdensome regulations. As you well know, guest worker visa programs can play an important role in meeting the demand for labor and are utilized by many farmers, ranchers, and employers across Montana. Ensuring that farmers, ranchers, and small businesses have sufficient access to labor, while prioritizing American workers and maintaining the integrity of immigration protocols, is of utmost importance. I have heard concerns from Montanans, particularly farmers and ranchers in the H-2A program, who have been harmed by impractical restrictions within that program. I urge you to increase efficiencies and flexibility within guest worker programs so that Montana farmers, ranchers, and small businesses can access thoroughly vetted guest workers when labor shortages exist. In addition, earlier this month, DOL finalized its rule to delay the fiduciary rule by 60-days in order to review and modify it. I am concerned that the original rule could have significant negative impacts on individuals with smaller DOL-17-0281-M-000026 AO 836892 OSEC 000990 investments by reducing access to quality financial advice and hindering Montanans' ability to save for their retirement. I ask that you rescind or substantially revise this rule to allow financial advisors to better serve their clients and prepare individuals for sound retirements. Further, the joint-employer rule is another example of a burdensome regulation that should be revised as it unnecessarily disrupted relationships between employers, vendors, franchisees, and staffing agencies. The increase in volatility in the labor market and uncertainty created by this rule has made it even more difficult to run a business and employ workers, and I urge to you take steps to mitigate and reverse the negative effects of this rule. Additionally, as you know, One-Stop Centers can play an important role in helping unemployed and underemployed workers find new jobs in their communities. These centers in Montana and across our country serve as an important resource for those seeking employment, training, and connections with local businesses. I encourage you to continue to actively partner with Montana businesses and communities to grow jobs and provide opportunities for those seeking employment and job training. I also would like to extend a formal invitation for you to join me in Montana during your time as Secretary of Labor. Congratulations again on your nomination, and I look forward to continuing to dialogue with you and your department on issues impacting Montana. ### Contact: Marcie Kinzel~ (b)(6) [ Katie WaldmanL__.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.( b)(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.J lll)i sclaimr:.!r NOTI CE: T hi s e- mai l mess age and any atta chm ents to it co nt ain confid enti al i nf orm at ion and are i nte nded so lely f or the use of t he ind ividua l (s) or ent iti es to w hich it is ad dresse d . I f yo u ar e not th e int ende d recipie nt , or an employee or agen t respo nsible f or notifi ed th at you are proh i bit ed from rev iew ing, ret ransmittin g, de liver ing thi s mess ag e t o th e i nt en ded rec ip ient , you are conve rt ing to hard copy, copyi disse min at ing, or ot herw ise ng in any manner t his e- mail or any att achments to it. I f yo u have not if y t he sende r by replyi ng t o t his messa ge and de let e it from your compu te r. rece ive d th is message in error , DOL-17-0281-M-000027 AO 836892 OSEC 000991 Palmer, Wayne D - OSEC Wednesday, April 26, 2017 7:52 AM Sue Hensley;Alex Acosta RE:vote scheduled From: Sent: To: Subject: I have separate req uest that went to Jilli an . Bringin g hard copy to show you when we meet . From: Sue Henslevi (b)(6) i 2r4)iil'-f-.-.-.-.-.-.-.-.-.-.-.-' Sent: Wednesday, A'prif''26.;.101Ts-:. To: Alex Acosta; Palmer, Wayne D - OSEC Subject: Fwd: vote scheduled FYI re: the Ben Penn request I mentioned yesterday. I am happy to also share with Jillian or can let you do that Wayne (whatever you deem appropriate) ...thanks. We can discuss this am ... Sent from my iPhone Begin forwarded message: From: "Penn, Ben"~ {b){6) Date: April 26, 2011'a7f8:26':.2TAM"EDr.-.-.-.. To: Sue Hensley i (b)(6) i ! Subject: RE: vote scheduled Good morning, here are some topics that I'd like to discuss. Could be in person or on the phone. I'm Thanks. working remotely today, and can be reached on my eel I -c-.-.-.-.-ibi(ai-.-.-.-.-J First orders of business to make up for lost time in past 100 days Deadlines coming up for action on fiduciary and overtime rules Thoughts on reviewing other Obama DOL regs/EOs/subregulatory actions, in compliance with Trump directives His influence on budget and 0MB reorg processes Plans to address newly reported fears of immigrant workers (longstanding MOU with OHS) Balance of open-door policy for stakeholders and internal review Progress on staffing up - both Senate-confirmed and high-ranking non-Senate-confirmed positions Views on compliance assistance vs. enforcement Anticipated role in president's trade and infrastructure efforts Response to concerns both in business and organized labor communities about next steps at DOL Overall strategic vision for this agency under your watch From: Sue Hens Iey [.-.-.-.-.-.-.-.-.-.-.-.-.-.J b)(6) .-.-.-.-.-.-.-.-.-.-.-.-.J Sent: Tuesday, April 25, 2017 6:09 PM DOL-17-0281-M-000028 AO 836892 OSEC 000992 To: Penn, Ben!______________ (b )(6) -.-.-.-.-.-.-.i Subject: Re: vote scheduled Sounds good. Sent from my iPhone r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-, On Apr 25, 2017, at 6:08 PM, Penn, Ben [___ _________ (b)(6)_________ ___iwrote: Than ks for bringing it to his attent ion, Sue. I' ll send over a list of top ics ear ly to morrow . 2 DOL-17-0281-M-000029 AO 836892 OSEC 000993 Palmer, Wayne D - 0SEC ! ; Geale, Nicholas C. - SOL; Bob Bozzuto j ! 4/26/2017 6: 35: 54 PM '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' FW: Department of Labor - D0L Fiduciary From: {b){6) To: Sent: Subject: Nick, w haddya think? From: Lenihan, Keagan R. E0P/WHO ["-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-(b)(sf-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.: Sent: Wednesday, April 26, 2017 5:01 PM To: Palmer, Wayne D - 0SEC; Bozzuto, Robert F - 0SEC Subject: FW: Department of Labor - D0L Fiduciary An yone they can chat with over there? Keagan R. Lenihan Office of Presidential Per sonnel 0: L__________ {b)(6L_ ________ ] From: Ollison, Boi (b)(6) 1 Sent: Wednesday',-.A-f:frff"20;-zn1T1T:-3"9-.AM-.-.-.. i To: Ilagan, Kelly A. EOP/WHO (b)(6) i Subject: Department of Labor - LDULFfd"CicT~rry.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Kelly - Brennan Hart provided your contact information and suggested that I reach out to you to see if you might be able to provide some insight into the Department of Labor's staffing. I am at the Securities Industry and Financial Markets Association and yesterday at our board meeting, NEC Director Gary Cohn when asked about DOL's Fiduciary Rule, implied that the White House was allowing soon-to-be confirmed Sec. Acosta to take the lead on ensuring that the rule was consistent with President Trump's stated priorities (from his Feb. 3 memorandum). With Drew Maloney no longer acting as the "Sherpa" for DOL with his appointment as Assistant Secretary of Legislative Affairs at the Department of Treasury, we were trying to figure out who to provide background material on the challenges that the career DOL staff are imposing in the implementation of the rule - for example, despite the President's directive for an updated economic analysis and reexamination of the costs and benefits, those have not yet been completed and DOL has acknowledged that those items will take much longer than the existing 60 day review period. Might it be possible to get a point of contact who is working with the Sec. Acosta confirmation process so that once he is confirmed later today or tomorrow he has the relevant background materials? Thanks so much for your assistance with this request and please don't hesitate to let me know if you need any additional information or have additional questions. Bo Bo Ollison SIFMA 1101 New York Avenue, NW, 8th Floor Washington, DC 20005 c~~~~~~~~(~j~i~~~~~~~~~J C~~~~~~j~j~i~~~~~~~~~J (office) (ceII) [ -.-.-.-.-.-.-.( b )( 6 )_____________ ___! www.projectinvested.com Follow us on Twitter: www.twitter.com/projectinvested DOL-17-0281-M-000030 AO 836892 OSEC 000994 DOL-17-0281-M-000031 From: To: CC: Sent: Subject: Lenihan, Keagan R. EOP/WHO Palmer, Wayne D - OSEC Bozzuto, Robert F - OSEC 4/26/2017 8:02:20 PM Re: Department of Labor - DOL Fiduciary Thanks. Think they want to brief someone on them too Sent from my iPhone ' On Apr 26, 2017, at 7:37 PM, Palmer, Wayne D - OSEC ~ (b)( 6) ' rwrote: L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-) Sure thing, Keagan. If all they want to do is send materials, they can direct them to Janelle Gardner, w ho recei ves or they can mail them incoming letters, invitations, etc. If electronic, the y can send them to ["-.-.-.-.-.-.-.-.-.-.-.ci>-)(6f.-.-.-.-.-.-.-.-.-.-.-i to her at our building. L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." From: Lenihan, Keagan R. EOP/WHO Sent: Wednesday, April 26, 2017 5:01'-;.:;...-.-.-.-.-.-.-.-..-.-.-.-..-.-.-.'-.-..-.".-.".-.-.-.-.-.-.-.-.-.-.-.-.-.-.-..-.-.-.. To: Palmer, Wayne D - OSEC; Bozzuto, Robert F - OSEC Subject: FW: Department of Labor - DOL Fiduciary An yone they can chat w ith over there? Keagan R. Lenihan Office of Presidential Per sonnel 0: L__________ {b)(6L_ ________ ] From: Ollison, Bo i {b){6) Sent: Wednesday,L April 26, 2017 11:39 AM i To: Ilagan, Kelly A. E OP/WHO L.-.-.-.-.-.-.-.-.-.-.-.-.-.-. (b )( 6) .-.-.-.-.-.-.-.-.-.-.-.-.-.___! Subject: Department of Labor - DOL Fiduciary Kelly - Brennan Hart provided your contact information and suggested that I reach out to you to see if you might be able to provide some insight into the Department of Labor's staffing. I am at the Securities Industry and Financial Markets Association and yesterday at our board meeting, NEC Director Gary Cohn when asked about DOL's Fiduciary Rule, implied that the White House was allowing soon-to-be confirmed Sec. Acosta to take the lead on ensuring that the rule was consistent with President Trump's stated priorities (from his Feb. 3 memorandum). With Drew Maloney no longer acting as the "Sherpa" for DOL with his appointment as Assistant Secretary of Legislative Affairs at the Department of Treasury, we were trying to figure out who to provide background material on the challenges that the career DOL staff are imposing in the implementation of the rule - for example, despite the President's directive for an updated economic analysis and reexamination of the costs and benefits, those have not yet been completed and DOL has acknowledged that those items will take much longer than the existing 60 day review period. Might it be possible to get a point of contact who is working with the Sec. Acosta confirmation process so that once he is confirmed later today or tomorrow he has the relevant background materials? Thanks so much for your assistance with this request and please don't hesitate to let me know if you need any additional information or have additional questions. Bo Bo Ollison DOL-17-0281-M-000032 AO 836892 OSEC 000996 SIFMA 1101 New York Avenue, NW, 8th Floor Washington, DC 20005 c~~~~~~~~(~j~i~~~~~~~~~J (office) C~~~~~~j~j~i~~~~~~~~~J (ce II) i (b)(6) ! ' www.projectinvested.com Follow us on Twitter: www.twitter.com/proiec tin vested DOL-17-0281-M-000033 AO 836892 OSEC 000997 From: To: CC: Sent: Subject: Palmer, Wayne D - OSEC Lenihan, Keagan R. EOP/WHO Bozzuto, Robert F - OSEC 4/26/2017 8:22:04 PM Re: Department of Labor - DOL Fiduciary If they want to submit a meeting request, that can go to Janelle as well. They've already sent materials to me along the way, and I know that our SMEs working on that issue are aware of their views. (b )(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-___!wrote: On: 26 April 2017 20 :04, "Lenihan, Keagan R. EOP /WHO" l_.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.Thanks. Think they want to brief someone on them too Sent from my iPhone 1.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ On Apr 26, 2017, at 7:37 PM, Palmer, Wayne D - OSEC <[.-.-.-.-.-.-.-.-.-.-.-{b }{6) .-.-.-.-.-.-.-.-.-jrote: Sure thing, Keagan. If all they want to do is send materials , they can direct them to Janelle Gardner, who recei ves v itations, etc. If electronic, they can send them to .J (b)(6) jor they can mail them incoming letter ~, i_n to her at our bu1ld1ng. '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' From: Lenihan, Keagan R. EOP/WHO l.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ( b )( 6)-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j Sent: Wednesday, April 26, 2017 5:01 PM To: Palmer, Wayne D - OSEC; Bozzuto, Robert F - OSEC Subject: FW: Department of Labor - DOL Fiduciary An yone they can chat with over there? Keagan R. Lenihan Office of Presidential Per sonnel Q: L__________ {b)(6L_ ________ ] From: Ollison, Bo!.-.-.-.-.-.-.-.-.-.-.-.( b)(6)-.-.-.-.-.-.-.-.-.-.-___i Sent: Wednesday, A pri I 26, 2017 _1_1 :39_AM-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Ilagan, Kelly A. EOP/WHO ~ (b)(6) i .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-) Subject: Department of Labor - DOL Fiduciary Kelly - Brennan Hart provided your contact information and suggested that I reach out to you to see if you might be able to provide some insight into the Department of Labor's staffing. I am at the Securities Industry and Financial Markets Association and yesterday at our board meeting, NEC Director Gary Cohn when asked about DOL's Fiduciary Rule, implied that the White House was allowing soon-to-be confirmed Sec. Acosta to take the lead on ensuring that the rule was consistent with President Trump's stated priorities (from his Feb. 3 memorandum). With Drew Maloney no longer acting as the "Sherpa" for DOL with his appointment as Assistant Secretary of Legislative Affairs at the Department of Treasury, we were trying to figure out who to provide background material on the challenges that the career DOL staff are imposing in the implementation of the rule - for example, despite the President's directive for an updated economic analysis and reexamination of the costs and benefits, those have not DOL-17-0281-M-000034 AO 836892 OSEC 000998 yet been completed and DOL has acknowledged that those items will take much longer than the existing 60 day review period. Might it be possible to get a point of contact who is working with the Sec. Acosta confirmation process so that once he is confirmed later today or tomorrow he has the relevant background materials? Thanks so much for your assistance with this request and please don't hesitate to let me know if you need any additional information or have additional questions. Bo Bo Ollison SIFMA 1101 New York Avenue, NW, 8th Floor Washington, DC 20005 c~~~~~~~~(~j~i~~~~~~~~~J (office) C~~~~~~j~j~i~~~~~~~~~J (ce II) l_______________ (b )(6) -.-.-.-.-.-.___: www.projectinvested.com Follow us on Twitter: www.twitter.com/proi ectin vested DOL-17-0281-M-000035 AO 836892 OSEC 000999 From: To: Sent: Subject: Sue Hensley Alex Acosta; Palmer, Wayne D - OSEC 4/28/2017 9:26:01 AM Fwd: BLOOMBERG BNA: What's Next at Labor Department After Acosta Confirmation? Sent from my iPhone Begin forwarded message: From: America Rising News Alerti (b)(6) ! Date: April 28, 2017 at 9:16:40 AMEDT To: undisclosed-recipients:; Subject: BLOOMBERG BNA: What's Next at Labor Department After Acosta Confirmation? Reply- To:l_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ (b)( 6 )-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~J What's Next at Labor Department After Acosta Confirmation? Bloomberg BNA ByBenPel111 April 27, 2017 https://www .bna.convw hats-ne:\.i-labor-1157982087274/ Alexander Acosta's confirmation ends a nearly 100-day void atop the Labor Departnient but won't necessarily yield swift policy direction on the tall stack of regulatory, budgetary and strategic issues waiting on his desk Outside stakeholders and inside agency career officers have bemoaned the lengthy state of paralysis at the DOL without a labor secretary and with little direction from the White House. Acosta's final approval from the Senate April 27 may only temporarily relieve tlie heaiiburn induced by inactio11 Tlie filling of senior DOL slots could be slowed by a crowded Senate calendar. Acosta's confirmation "is a very important step forward, and r 111sure he's going to do a great job, but these things do take time," Diana Furchtgott-Roth, who served on President Donald Trump's DOL transition team but hasn't advised Acosta, told Bloomberg BNA. The new labor secretary, his advisers and career staff must immediately begin review on time-sensitive decisions on the DOL' s fiduciary and ove1iime mles, budget proposal and response to a White House order to reorganize. But ifs unclear how much progress Acosta can make in the early going without Senate-confirmed persol1llel by his side. Acosta and the White House are said to have been actively conducting interviews in recent weeks to quicldy al1llouncesenior DOL official positions. A jammed legislative calendar and a long summer recess, how ever, could prevent sonie top-ranking subcabi11etofficers from receiving a liearing until late this year or into 2018. "Tliey need to pick and finalize the deputy secretary, solicitor and assistant secretaries, and tlien once they do that, tliey can sta1i moving forward with the policies that President Trump laid out in his campaign, which is rolling back sonie of these regulations," said Furchtgott-Roth, a past Republican DOL chief economist who is now a senior fellow at the free-market-oriented Manhattan Institute. DOL-17-0281-M-000036 AO 836892 OSEC 001000 Acosta is known as a thorough legal scholar, reluctant to act until he's examined an issue from all sides. That could mean slow movement. "I think that Alex is going to be very cautious. I don't think that he's going to come in there and the nexi day start moving the furniture around," Jolmhving, a former senior DOL official, told BloombergBNA. "He's an exceptional lawyer, he's a thoughtful guy, he's careful, he's balanced, he's reasonable." hving now represents employers as of counsel at Kirldand & Ellis in Washington Acosta worked for hving in the 1990s as a Kirldand & Ellis associate. Hard Deadlines Some matters face hard deadlines that won't permit Acosta to wait for assistant secretary nominations. First up: A paii of the fiduciary mle, which tightens conflict-of-interest restrictions on retirement investnient brokers, is scheduled to take effect June 9. In accordance with a Tmmp memo, tlie agency is in the midst of reviewing how to implement tlie full regulatio11 If the secretary wislies to delay the Jmie 9 date, as tlie financial services sector will urge him, lie would need to send the Office of Management and Budget a new rule making within days after being sworn i11 The overtime rule that doubles the salary threshold for time-and-a-half pay eligibility was already blocked by a judge last year, triggering an appeal by the Obama administration Justice Department. But Trump's DOJ has three times delayed filing a brief on that appeal to allow for a new secretary's instructions. Acosta faces a June 30 deadli1ie to file a brief in that case. He may decide whether to defend tlie controversial regulation in comi instead of waiting for a confirmed Wage and Hour Division administrator. "He is going to have to weigh in with the Justice Depaiiment and because lie' s a very high-level lawyer, maybe read the briefs himself and decide if lie wants to urge the Justice Department to take a different position," Seth Harris, an acting labor secretary under Obama, told Bloomberg BNA. "So that's going to be right away." Fmilier, Tmmp' s budget blueprint called for slashing tlie DOL funding by 21 percent without specifying wliere most of that $2.6 billion reduction would come from or how subagencies should be prioritized. Tlie White House is expected to publish a more detailed budget proposal in May, leaving Acosta precious little time to influence the process. "He will be able to affect tlie budget proposal at tlie margins, but at the end of tlie day, he is going to be in a tight box when it comes to the budget," said Harris, now an attorney in Washingto11 Names Floated for Jobs The department already has an acting political solicitor in Nicholas Geale who is seen as a valuable asset in reviewing the Obama administration regulatory agenda. Ifs possible Acosta could grow impatient with the Senate calendar and insert other acting political appointees, such as at the WHD and Employee Be1iefits Security Administration If lie were to to proceed in that fashion, those appointees are ex-pected to be more like-minded than tlie career acting leaders lie inherits. "After his confirmation, the business community hopes he gets a very quick start on policy changes without waiting to fill all of the subcabinet positions," Tammy McCutchen, a former WHD administrator under President George W. Bush, told Bloomberg BNA. Names previously floated to round out Acosta's team include Patrick Pizzella (deputy secretary), Alexander Passantino (WHD), Scott Mugno (Occupational Safety and Health Administration), Molly Conway (Office of Federal Contractor Compliance Programs) and Geale (moving from acting to permanent solicitor). Low- Hanging Fruit Otlier areas, such as determining an appropriate balance between enforcement and compliance assistance, could take longer for clarity under the secretary. DOL-17-0281-M-000037 AO 836892 OSEC 001001 But outside the big-ticket fiduciary and overtime regulations, there are other priorities subject to review under the president's call to ease burdens on businesses to enable hiring. A review of the overtime regulation may lead to a new rule making, which requires a complicated and time-consuming process. The business community will also ask for the instant reversal of subregulatory actions under Obama' s labor secretary, Thomas Perez. "Do they jump into" overtime, "or do they try to knock off some of this low-hanging fmit and go after internal guidance documents, enforcement memos, administrator's interpretations, reinstate the opinion letter process and get some quick victories there?" James Plunkett, senior government relations counsel at Ogletree Deakins in Washington, told Bloomberg BNA. "If it were me, I think rd try to look at making some of those quick immediate changes before diving into bigger-picture things." The WHD' s interpretation documents clarifying an ex-pansive definition of joint employer and independent contractor under the Fair Labor Standards Act will be a target for removal. Open-Door Policy Acosta, througl1his time running the DOJ' s Civil Rigllts Division, brings a reputation for having an open-door policy to labor and employer interest groups. The early days of his term will likely include meetings with many stakeholders in the advocacy and think tank arenas, as well as with members of Congress from both paiiies. Vicki Shabo, vice president at the National Partnership for Women and Families, told Bloomberg BNA she'll seek a meeting with Acosta, possibly with a coalition of worker advocacy groups. She would wa11tto impress upon Acosta grave concerns about actions from the White House that could limit worker protections. "If the administration is successful in the drastic cut to DOL' s budget that ifs proposed, I would be very worried about implementation, enforcement, investigations, really across the board with respect to wages, working conditions, work-place fairness," Shabo said. Rep. Mark Takano (D-Calif. ), the top Democrat on the House subcommittee that oversees DOL worker protections, told Bloomberg BNA he plans to ask Acosta to undo the damage that's already been done in Trump's first 100 days in office. "What do I hope to pursue witli' Acosta? "I have a beef already wit:11tl1efirst 100 days," Takano said. "Mr. Secretary, do you have any ability to go to tllis preside11tand get llim to reconsider the tllings he's already done T Trump has already signed legislation, via tl1eCongressional Review Act, to kill tl1eFair Pay and Safe Workplaces mle, wllich would've required compmlies to report past labor violations when bidding on federal contracts. He also blocked an OSHA workplace i11juryrep01iing regulatio11 Strategic Vision Anotl1er open question is exactly how Secretary Acosta will look to define his strategic visio11 Acosta may have a role in selling the Wllite House's infrastructure, imnligration and trade plans-Trump i1litiatives that intersect wit:11the DOL' s portfolio. "Preside11t Trump is clearly working to be the blue-collar president, and he is going to push for treating all workers fairly and creating jobs," Vincent Vernuccio, director oflabor policy at tl1eMackinac Center and a former DOL transition official, told Bloomberg BNA. "So we'll see what form that takes in a Trump-Acosta Depaiiment of Labor." You received this message because you are subscribed to the Google Groups "Figh.tEorJ.5.__ :W..R.AJ~rt~'--grgJJIL _____________________________________ , To unsubscribe from this group and stop receiving emails from it, send an email to l.___.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-Jb )(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-___! DOL-17-0281-M-000038 AO 836892 OSEC 001002 From: To: Sent: Subject: Attachments: Conway, Molly E - OSEC Palmer, Wayne D - OSEC; Geale, Nicholas C. - SOL 4/28/2017 3:01 :35 PM Fiduciary Letter for Secretary Acosta 2017 0428 Letter to Secretary Acosta re Fiduciary Rule.pdf Attached is a letter to Secretary Acosta from Chairman Alexander and other HELP majority members requesting an additional fiduciary delay. I will also send to Bea in ExecSec to place in SIMS. The committee did press on the letter, below is the e-mail that went to the press: Hey folks Today. Senate labor committee Chairman Lamar Alexander led committee members Sens. Bure Cassidy. Collins. Enzi. Isakson. Roberts. Scott, and Young in sending a letter to Secretary of Labor Alexander Acosta on his first day in office asking him to finish a review of the previous administration's "fiduciary" rule before any part of the rule becomes applicable. The committee members' request is in keeping with the President's February memorandum, which stated that one of the president's priorities "is to empower Americans to make their own financial decisions, to facilitate their ability to save for retirement and build the individual wealth necessary to afford typical lifetime expenses ... " Therefore, the memorandum directed the Labor Secretary to examine the fiduciary rule "to determine whether [the rule] may adversely affect the ability of Americans to gain access to retirement information and financial advice." The members write, "The President's memorandum is clear that if the Secretary mal;;:esan affinnative finding as to any of the memorandum's enumerated harmful conditions, 'or if[the Secretary] conclude[s ]jar any other reason after appropriate review that the [fiduciary rule] is inconsistent with the [President's priority]-then [the Secretary] shall publish for notice and comment a proposed rule rescinding or revising the Rule ... ,H] Earlier this month, the Trump Administration dehrved implementation of the fiduciary rule by 60 days to June 9, to give the Department of Labor time to fully review how the rule would affect retirement advice. Text of the letter is below and available here. Let me know if you have any questions Taylor Haulsee Press Secretary Senator Lamar Alexander (R-Tenn.) Chairman Senate Health Education Labor and Pensions Committee !_______________________________ {_b) {6) ____________________________ ___! From: Proseus, Gregory (HELP Committee) Sent: Friday, April 28, 2017 2 :43 PM ..-.-.-.-.-.-.-.-..-.-.-.-.-.-.-.-..-.-.-.-.-.-.-.-..-.-.-.-.-.-.-.-..-.-.-.-.-.-.-.-..-.-.-.-.-.-.. To: Conway, Molly E - OSEC Cc: Seidman, Lindsey (HELP Committee); Fortson, Kyle (HELP Committee); Campbell, Will (HELP Committee) Subject: Letter for Secretary Acosta DOL-17-0281-M-000039 AO 836892 OSEC 001003 Molly: please find attached a letter for Secretary Acosta from Sens. Alexander, Enzi, Burr, Isakson, Collins, Cassidy, Young, Roberts, and Scott regarding the fiduciary rule. Many thanks! Greg Gregory P. Proseus Labor & Pensions Counsel C01mnittee on HealtR Education. Labor. and Pensions Senator Lamar Alexander (R-TN), Chainnan l_________ _tbJ(6).__ ______ ] DOL-17-0281-M-000040 AO 836892 OSEC 001004 Palmer, Wayne D - OSEC Gardner, Janelle A- OSEC (Gardner.Janelle.A@dol.gov) Geale, Nicholas C. - SOL; Conway, Molly E - OSEC (Conway.Molly.E@dol.gov) 5/1/201711:49:47 AM FW: Meeting request for Secretary Acosta Joint CEO Letter to Acosta Final_April 28 2017.pdf From: To: CC: Sent: Subject: Attachments: From: Flitton, Jennifer i (b)(6) ! Sent: Monday, May 01,L20T7TE3TAtvr.-.-.-.-.-.-.-.-.-.-.-.. To: _Palmer,_Wayne_ D_-_OSEC_ Cc:[____________________ (b )( 6 )__________________ ___! Subject: Meeting request for Secretary Acosta Good morning, Wayne. Attached is a timely meeting request for Secretary Acosta from nine trade association appreciate your consideration. CEOs. We would greatly Best, Jennifer Jennifer Flitton Managing Director, Federal Government Relations Public Policy & Advocacy Securities Industry and Financial Markets Association (SIFMA) th 1101 New York Avenue, 8 Floor, NW, Washington, DC 20005 Office: f.~--~--~--~._:"i!!i.i"!ii".~--~--~--~-J i.WWW ~i~~~G~rg -.-.-.! @sifma DOL-17-0281-M-000041 AO 836892 OSEC 001005 From: Sent: To: Cc: Subject: Gardner, Janelle A - OSEC Monday, May 1, 2017 2:23 PM Geale, Nicholas C. - SOL Palmer, Wayne D - OSEC RE:FYI Thanks. will chat with Wayne and circle back. Janelle Gardner Department of Labor From: Geale, Nicholas C. - SOL Sent: Monday, May 01, 2017 3:22 PM To: Gardner, Janelle A - OSEC Cc: Palmer, Wayne D - OSEC Subject: FYI JanelleBrad Campbell on behalf of Edward Jones called me personally to ask for a meeting with RAA re fiduciary rule and requesting contact information. Brad is former EBSAAssistant Secretary. I elected to pass the information on to you rather than give any contact information out at this time. _________ J~l6L. ________ j Happy to convey response or let you. Brad's number is :_ DOL-17-0281-M-000042 AO 836892 OSEC 001006 From: To: Sent: Subject: Palmer, Wayne D - OSEC Joe Ziemer 5/1/2017 6:16:48 PM RE: Meeting Request with Secretary Acosta Thank s, Joe . I forwarded your reque st to Janelle Gardner , the Secretary' s Scheduler , for considerati on. From: Joe Ziemer i..-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-) (b)(6) i Sent: Monday, May 01, 2017 6:04 PM To: Palmer, Wayne D - OSEC Subject: Meeting Request with Secretary Acosta Mr. Palmer, Hope all is well and congratulations on the confirmation of Secretary Acosta. I would like to formally request a meeting with Secretary Acosta to discuss the Fiduciary Rule. I would be joined by Betterment's CEO and Founder, Jon Stein. Betterment is the largest independent online financial advisor and one of the fastest growing financial services companies in the country. Our schedule is flexible and we would greatly appreciate the honor of a meeting with the Secretary. Thanks, Joe Ziemer Joe Ziemer VP- Communications and Policy I Betterment.com 0: L-.-.-.-.-.l~l{?L._._._.J I M : L-.-.-.-.-.l~l{!IL_._._.J @joeziemer I @betterment DOL-17-0281-M-000043 AO 836892 OSEC 001007 From: To: Sent: Subject: Palmer, Wayne D - OSEC Gardner, Janelle A- OSEC (Gardner.Janelle.A@dol.gov) 5/1/2017 6:11:11 PM FW: Meeting Request with Secretary Acosta From: Joe Ziemeri (b)(6) i Sent: Monday, May 01, 2017 6:04 PM To: Palmer, Wayne D - OSEC Subject: Meeting Request with Secretary Acosta Mr. Palmer, Hope all is well and congratulations on the confirmation of Secretary Acosta. I would like to formally request a meeting with Secretary Acosta to discuss the Fiduciary Rule. I would be joined by Betterment's CEO and Founder, Jon Stein. Betterment is the largest independent online financial advisor and one of the fastest growing financial services companies in the country. Our schedule is flexible and we would greatly appreciate the honor of a meeting with the Secretary. Thanks, Joe Ziemer Joe Ziemer VP- Communications and Policy I Betterment.com 0: l__________ .l~l{?)___ _______ J I M : :.__________ l~l{!IL._____ __i @joeziemer I @betterment DOL-17-0281-M-000044 AO 836892 OSEC 001008 From: To: Sent: Subject: Joe Ziemer Palmer, Wayne D - OSEC 5/1/2017 6:21:56 PM Re: Meeting Request with Secretary Acosta Thank you. I appreciate the help. On Mon, May 1, 2017 at 6:16 PM, Palmer, Wayne D - OSEC .--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. ~ {b){6) jwrote: i...-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Thanks , Joe. I forwarded your request to Janelle Gardner, the Secretary's Scheduler, for consideration. From: Joe Ziemer [mailto) (b)(6) i Sent: Monday. May en.2Cll7 6:04 PM ' To: Palmer. WayneD - OSEC Subject: Meeting Request with Secretary Acosta Mr. Palmer, Hope all is well and congratulations on the confirmation of Secretary Acosta. I would like to formally request a meeting with Secretary Acosta to discuss the Fiduciary Rule. I would be joined by Betterment's CEO and Founder, Jon Stein. Betterment is the largest independent online financial advisor and one of the fastest growing financial services companies in the country. Our schedule is flexible and we would greatly appreciate the honor of a meeting with the Secretary. Thanks, Joe Ziemer Joe Ziemer VP- Communicationsand Policy I Betterment.com rZ,lioeziemerI rZ{betterment DOL-17-0281-M-000045 AO 836892 OSEC 001009 Joe Ziemer VP- Communications I Betterment.com 0: l__________ .l~l{?)___ _______ J I M : :.__________ l~l{!IL._____ __i @joeziemer I @betterment DOL-17-0281-M-000046 AO 836892 OSEC 001010 From: To: Sent: Subject: Geale, NicholasC. - SOL Gardner, Janelle A - OSEC; Palmer, Wayne D - OSEC 5/2/2017 10:25:31 AM Re: Capital Group Meeting Request Sure. On: 02 May 2017 09:51, "Gardner, Janelle A - OSEC" wrote: Another fiduciary request. Up to at least 5 now in the past few days. Nick- can I come chat with you about thes? Janelle Gardner Department of Labor From: ReaganAndersoni (b)(6) i Sent: Tuesday, May 02, 2017 9:47 AM To: Gardner, Janelle A - OSEC Subject: Capital Group Meeting Request Hi Janelle, I hope you are doing well. I am writing on behalf of Kevin Clifford to request an introductory meeting with Secretary Acosta on Tuesday May 16th . Kevin is chairman and chief executive officer of North American Distribution at American Funds, part of Capital Group. He is also president of the Institutional Investment Services division of Capital Group Companies, Inc. and serves on the Capital Group Companies Management Committee. He has 35 years of investment industry experience, all with Capital Group. Earlier in his career at Capital, Kevin was national sales manager and a mutual fund wholesaler. He holds a bachelor's degree in political science from Wabash College, Indiana. Kevin is based in Los Angeles. Capital Group is a privately-held investment manager founded in 1931 and headquartered in Los Angeles. We manage the American Funds family of mutual funds with total assets under management of $1.4 trillion. We manage 30 million accounts with an average balance of $30,000. Capital is the leader in retirement investing across all market segments and account types. More than 80% of our assets are in 401(k)s, IRAs (including SEP and SIMPLE IRAs) and company pension plans. And, we manage the largest 529 college savings plan with almost 6 million accounts and $46.5 billion in assets. The American Funds have delivered consistently superior results over meaningful periods. Our equity funds have beaten their Lipper peer indexes in 91 % of rolling 10-year periods and 95% of rolling 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 58% of 20-year periods. We have been working diligently on the fiduciary rule for the past two years and would love the chance to share our perspective on its implementation and need for transition guidance ahead of the June 9 applicability date. Thank you, Reagan Reagan Anderson Vice President Government Relations DOL-17-0281-M-000047 AO 836892 OSEC 001011 Capital Group r-.-.-.-.-(bitiil"-.-.-.-.7 DIRECT c.-.-.-.-ibits1.-.-.-.-.7 MOB ILE 3000 K Street NW, Suite 230 Washington, DC 20007 i thecapitalgroup.corn iL--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.o (b)(6) DOL-17-0281-M-000048 AO 836892 OSEC 001012 From: Sent: To: Cc: Subject: Attachments: Conway, Molly E - OSEC Tuesday, May 2, 2017 10:42 AM Geale, Nicholas C. - SOL;Palmer, Wayne D - OSEC Mehrens, Nathan P - OSEC FW: Fiduciary Rule Letter Fiduciary Letter to DOL - 5-2017.pdf From: Bartley, Catherine! (b)(G) ] Sent: Tuesday, May 02, 2017 11:40 AM To: Conway, Molly E - OSEC Cc: Bill, Aaron Subject: Fiduciary Rule Letter Hi Molly, Please find attached a letter from Congressman Roe and 123 of his colleagues to Secretary Acosta regarding the Please let me know if fiduciary rule. This letter will be mailed out this afternoon and has been faxed to :-.-.-.-.-.-i~iai-.-.-.-.-.1 you have any questions. Best, Catherine Catherine Ann Bartley Congressman Phil Roe, M.D. (TN-01} 336 Cannon House Office Building Washington, D.C. 20515 l________ _!b)f61_________ ! DOL-17-0281-M-000049 AO 836892 OSEC 001013 From: To: Sent: Subject: Attachments: Palmer Wayne D - OSEC .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. b}{6} Gardn~r, Ja~ell_eA - OSEC I { ! 5/2/2017 11.58. 29 AM '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' FW: Secretary Acosta Meeting Request NELP Meeting Request 5-2-2017.pdf FY I From: ShaylaThompsoni (b)(6) ; Sent: Tuesday, May 02, 2(Jlrn :"43AM.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.To: Palmer, Wayne D - OSEC;Heimlich, Judith - EXECSEC Cc: Talk to DOL Subject: SecretaryAcosta Meeting Request Dear Mr. Palmer and Ms. Heimlich, Please see the attached letter from Christine Owens at the National Employment Law Project requesting a meeting with Secretary Acosta as soon as possible to discuss a range of issues including the importance of the timely implementation of the Conflict of Interest Rule. I would be happy to work with you on times that work for the Secretary. Thank You. Shayla Thompson Executive Assistant to the Executive Director National EmploymentLaw Project 2040 S Street NW. Lower Level Washington,D.C. 20009 l.Pli: .:.~ ~ ~ (~t~~? ~ ~ ~ ~ ~.:-.-. ! DOL-17-0281-M-000050 AO 836892 OSEC 001014 From: To: CC: Sent: Subject: Attachments: Heimlich, Judith - EXECSEC Way, Elizabeth - EXECSEC; Close, Nalini - EXECSEC Palmer, Wayne D - OSEC 5/2/2017 12:03:21 PM FW: Secretary Acosta Meeting Request NELP Meeting Request 5-2-2017.pdf From: Shayla Thompson! (b)(G) i Sent: Tuesday, May 02, 2017 11:43 AM To: Palmer, Wayne D - OSEC; Heimlich, Judith - EXECSEC Cc: Talk to DOL Subject: Secretary Acosta Meeting Request Dear Mr. Palmer and Ms. Heimlich, Please see the attached letter from Christine Owens at the National Employment Law Project requesting a meeting with Secretary Acosta as soon as possible to discuss a range of issues including the importance of the timely implementation of the Conflict of Interest Rule. I would be happy to work with you on times that work for the Secretary. Thank You, Shayla Thompson Executive Assistant to the Executive Director National EmploymentLaw Project 2040 S Street NW, Lower Level Washington,D.C. 20009 (~~\~~~~~~T ___ i LPh:T~~- DOL-17-0281-M-000051 AO 836892 OSEC 001015 From: To: Sent: Subject: Palmer Wayne D - 0SEC ..-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. Gardn~r, J~n~lle A - 0SEC ! { ! 5/2/2017 1 .53. 00 PM ;-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-; FW: Request for a meeting with Secretary Acosta on the Fiduciary Rule b) {6) From: Maureen Thompson i (b)(6) ! Sent: Tuesday, May 02, 201TI:4 2f PM-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." To: Palmer, Wayne D - 0SEC Cc: William Nelson; Teresa Mendes Subject: Request for a meeting with Secretary Acosta on the Fiduciary Rule Dear Secretary Acosta: First, congratulations on being appointed to serve as Secretary of the U.S. Department of Labor (DOL). We look forward to working with you to ensure that the hard-earned funds of retirement investors are available to them for a secure and independent retirement. I am writing today on behalf of The Financial Planning Coalition (Coalition) - comprised of the Certified Financial Planner Board of Standards, Inc. (CFP Board), the Financial Planning Association(R) (FPA(R)), and the National Association of Personal Financial Advisors (NAPFA), whose stakeholders and members account for over 80,000 financial planning professionals in the U.S. -- to request a meeting with you to discuss our support for the DOL Conflict of Interest Rule (Fiduciary Rule) and our opposition to further delays of the Rule. As you know, the Fiduciary Rule requires financial advisors to provide advice to retirement plans and Individual Retirement Accounts (IRAs) that is in the customer's best interest, establishes urgently needed consumer protections for retirement investors, and is workable across financial service business models. The Coalition's support for the Fiduciary Rule is based on the real-world experience of the Coalition and its more than 80,000 financial professionals and other stakeholders in applying the fiduciary standard across business and compensation models. Since 2008, when CFP Board established a fiduciary standard, which has been endorsed by both FPA and NAPFA, CFP(R) professionals have been successfully providing fiduciary-level financial planning services to large and small savers, across business models, and across compensation models. Based on this experience, the Coalition believes the Fiduciary Rule is both workable and essential to protect America's retirement savers. We believe we bring a unique perspective to this issue and hope you will have time to meet with us in the very near future. Thank you, and I look forward to hearing from you to schedule this meeting. Sincerely, Maureen A. Thompson MAURIE.ENTI-IOMPSOI\I V ICE PR ES IDENT. PUBLIC POLICY C ERTIFIED FINANCIA L PLANNER BOA RD OF STANDA RDS . INC. .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ( b)( 6) i________ _ p L~~~~~j@~C~~~~~} C !________ (b )(6) _______ l___ i 1425 K ST REE T . NW #5 00 o WASH INC3T O N. DC 20 00 5 Work w it h the highest st anclarcl. DOL-17-0281-M-000052 AO 836892 OSEC 001016 Fine! us online: CFP.net I LetsMakeAPlan.org CenterforFinancialPlanning.o rg I I Facebook Tw itte r I Linkedin DOL-17-0281-M-000053 AO 836892 OSEC 001017 From: Sent: To: Subject: Gardner, Janelle A - OSEC Tuesday, May 2, 2017 6:35 PM Palmer, Wayne D - OSEC RE: Request for meeting on Conflict of Interest rule from Save our Retirement, Americans for Financial Reform Ok- sorry! Its just a habit Janelle Gardner Department of Labor From: Palmer, Wayne D - OSEC Sent: Tuesday, May 02, 2017 7: 17 PM To: Gardner, Janelle A - OSEC Subject: RE: Request for meeting on Conflict of Interest rule from Save our Retirement, Americans for Financial Reform No need t o acknow ledge garde n variet y reques ts. Mi ght as we ll cut dow n o n you r tr affi c. From: Gardner, Janelle A - OSEC Sent: Tuesday, May 02, 2017 7:04 PM To: Palmer, Wayne D - OSEC Subject: RE: Request for meeting on Conflict of Interest rule from Save our Retirement, Americans for Financial Reform Thanks! Janelle Gardner Department of Labor From: Palmer, Wayne D - OSEC Sent: Tuesday, May 02, 2017 7:03 PM To: Gardner, Janelle A - OSEC Subject: FW: Request for meeting on Conflict of Interest rule from Save our Retirement, Americans for Financial Reform From: Marcus Stanley i (b)(6) ! Sent: Tuesday, May 02, 2017 3:00 PM To: Palmer, Wayne D - OSEC Subject: Request for meeting on Conflict of Interest rule from Save our Retirement, Americans for Financial Reform Hi, Mr. Palmer. I'm the Policy Director at Americans for Financial Reform. We are a member of the Save Our Retirement Coalition, which also includes AARP, AFL-CIO, and Better Markets. We would like to request a meeting with Secretary Acosta and other relevant DOL staff to discuss our opposition to further delay in the implementation of the rule. Would Secretary Acosta be available for such a meeting in the coming weeks? Thanks very much. 1 DOL-17-0281-M-000054 AO 836892 OSEC 001018 Marcus Stanley Policy Director Americans for Financial Reform 1620 K Street NW, 11th Floor Washington, DC 20006 2 DOL-17-0281-M-000055 AO 836892 OSEC 001019 From: Gardner, Janelle A - OSEC Palmer, Wayne D - OSEC; Geale, Nicholas C. - SOL 5/3/2017 8:46:56 AM FW: Fiduciary Rule Meeting To: Sent: Subject: See below for meeting at WH RE- Fiduciary ASAP. Janelle Gardner Department of Labor -----Original Message----- F r om : Del a plane , Sent: Wednesday, To: Eisner-Poor, Gardner, Janelle Cc: Amin, Stacy Subject: Fiduciary i Blake W. EOP /WHO !._.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ( b )( 6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. May 03, 2017 8:13 AM Kaitlyn E. EOP/WHO; Pickitt, Kailey M. EOP/OMB; Salvi, Mary E. EOP/WHO; A - OSEC C. EOP/WHO Rule Meeting Hi all, i' !! (b)(5) I I i--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ Thursday: llam-1:30pm 3-7pm Friday: 10am-3pm Warmly, Blake Blake Delaplane Special Assistant [_ _____________ (b)(6) _______________ ! ( W to the White House Counsel ) :-.-.-.-.-.-.-.-ib"i(Gi-.-.-.-.-.-.-.7 ( c ) DOL-17-0281-M-000056 AO 836892 OSEC 001020 From: To: Sent: Subject: Palmer, Wayne D - OSEC ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., ( I Gardner, J~n~lle A - OSEC (j 5/3/2017 4. 00. 09 PM '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." FW: Congratulations & Meeting Request b) (6) From: David Weiskopf! (b)(6) i Sent: Wednesday, Ma/01;-2DTT3:0S-PM-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' To: Palmer, Wayne D - OSEC Subject: Congratulations & Meeting Request Dear Mr. Palmer, I am writing on behalf of Larry Raffone, CEO of Financial Engines (FNGN), to request a meeting with Secretary Acosta. Financial Engines was established over 20 years ago and is America's largest registered independent investment advisor, providing high-quality, conflict-free investment advice to millions of people who work at many of the country's largest employers. Mr. Raffone would appreciate the opportunity to discuss with the Secretary next steps on the fiduciary duty rule (the importance of having the strongest possible one) and appropriate investor safeguards (that work for everyone - consumers and advisors). We have been actively involved in this issue for some time and care deeply about getting it right. We understand that the Secretary has an extremely busy schedule, so are flexible and can meet at his convenience. Thank you for your consideration of this request. Sincerely, Thanks. NOTICE: This e-mail and any attachments to it may be privileged, confidential or contain trade secret information and is intended only for the use of the individual or entity to which it is addressed. If this e-mail was sent to you in error, please notify me immediately by either reply e-mail or by phone at [-.-.-.-.-.(.b)(G).-.-.-.-.-.1 and do not use, disseminate, retain, print or copy the e-mail or any attachment. All messages sent to and from this e-mail address may be monitored as permitted by or necessary under applicable law and regulations. We cannot accept orders for transactions or other similar instrnctions through e-mail. We cannot ensure the security of information e-mailed over the Internet; please exercise caution when transmitting confidential information such as account numbers and security holdings. DOL-17-0281-M-000057 AO 836892 OSEC 001021 From: To: CC: Sent: Subject: Palmer, Wayne D - OSEC Anderson, Byron E - OSEC Mannix, Patrick M - OSEC 5/3/2017 4:02:26 PM RE: Congressional letters for binders To Patrick From: Anderson, Byron E - OSEC Sent: Wednesday, May 03, 2017 3:17 PM To: Palmer, Wayne D - OSEC Subject: Congressional letters for binders Wayne I pulled the letters off of SIMS which came from the Chair and ranking members of HELP, Ed & Workforce, and the Appropriations Labor Subcommittees. Mostly Fiduciary, Beryllium, Trade Adjustment Assistance. Let me know where they should go. Byron Anderson OSEC Anderson.Bvron.Erd,dol. gov i-.-.-.-.-. (b)(6) .-.-.-.-.idirect ' c.-.-.-jbi{sJ:-.-.-.-.-:, mobile DOL-17-0281-M-000058 AO 836892 OSEC 001022 From: Sent: To: Subject: Attachments: Palmer,Wayne D - OSEC Wednesday, May 3, 2017 2:58 PM (b)(6) i Gardner, Janelle A - OSECi FW: CFA Meeting Request'w1m.se-cn::tcrry.A"cosw-.-.-.-.-.-.-.-.-." CFA Meeting Request with SecretaryAcosta.pdf From: Micah Hauptman..-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-....-.-." Sent: Wednesday, May 03, 2017 3:30 PM To: Palmer, Wayne D - OSEC Cc: Barbara Comcast Subject: CFA Meeting Request with Secretary Acosta Dear Mr. Palmer, CFA would welcome the opportunity to meet with Secretary Acosta to discuss the Department's Conflict of Interest (Fiduciary) Rule. Our formal request is attached. Thank you so much, Micah Micah Hauptman Financial ServicesCounsel Consumer Federation of America 1620 Eye Street NW, Suite 200 Washington, DC20006 office: [__________ Jl?.l(?L. _____ __.lI ce11: l_________ _lbJ(~)___ _______ J DOL-17-0281-M-000059 AO 836892 OSEC 001023 From: To: Sent: Subject: Geale, Nicholas C. - SOL Palmer, Wayne D - OSEC 5/3/2017 4:58:50 PM RE: Fiduciary Called ya. Let me know. From: Palmer, Wayne D - OSEC Sent: Wednesday, May 03, 2017 4:04 PM To: Geale, Nicholas C. - SOL Subject: Fiduciary Got an answer from RAA on the meeting requests. We can talk at your convenience. DOL-17-0281-M-000060 AO 836892 OSEC 001024 From: To: Sent: Subject: David Weiskopf Palmer, Wayne D - OSEC 5/3/2017 4:42:04 PM RE: Congratulations & Meeting Request On this topic, Financial Engines recently issued the following press release -- http://pr.financialengines.com /phoenix.zhtml?c=233599&p=press-article&ID=2262437 -- to outline the highlights of our recent consumer opinion survey on the Fiduciary Rule. You can see the full survey results here. Davi d Weiskopf Vice President Financial Engines (cell) Call. C~~~~~~iiiii.G.J.~~~~~~~~J (direct) c.-:_-:_-:_-:_iiiiJ~j_.:_-:_-:.-:."J Visit. 1050 Enterprise Way, 3rd Floor. Sunnyvale, CA 94089 Click. FinancialEngines.com From: David Weiskopf Sent: Wednesday, May 03, 2017 12:05 PM To: 'Palmer.wayne.d@dol.gov' (b)(6) ] Subject: Congratulations & M eeff fiij"ReciuesC-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' i Dear Mr. Palmer, I am writing on behalf of Larry Raffone, CEO of Financial Engines (FNGN), to request a meeting with Secretary Acosta. Financial Engines was established over 20 years ago and is America's largest registered independent investment advisor, providing high-quality, conflict-free investment advice to millions of people who work at many of the country's largest employers. Mr. Raffone would appreciate the opportunity to discuss with the Secretary next steps on the fiduciary duty rule (the importance of having the strongest possible one) and appropriate investor safeguards (that work for everyone - consumers and advisors). We have been actively involved in this issue for some time and care deeply about getting it right. We understand that the Secretary has an extremely busy schedule, so are flexible and can meet at his convenience. Thank you for your consideration of this request. Sincerely, David DOL-17-0281-M-000061 AO 836892 OSEC 001025 NOTICE: This e-mail and any attachments to it may be privileged, confidential or contain trade secret information and is intended only for the use of the individual or entity to which it is addressed. If this e-mail was sent to you in error, please notify me immediately by either reply e-mail or by phone at [-.-.-.-.-.(.b)(G).-.-.-.-.-.1 and do not use, disseminate, retain, print or copy the e-mail or any attachment. All messages sent to and from this e-mail address may be monitored as permitted by or necessary under applicable law and regulations. We cannot accept orders for transactions or other similar instrnctions through e-mail. We cannot ensure the security of information e-mailed over the Internet; please exercise caution when transmitting confidential information such as account numbers and security holdings. DOL-17-0281-M-000062 AO 836892 OSEC 001026 Conway, Molly E - OSEC Gardner, Janelle A - OSEC Palmer, Wayne D - OSEC 5/4/2017 3:09:26 PM FW: Introduction From: To: CC: Sent: Subject: This will almost certainly be about Fiduciary. From: Alety, Saat (Scott) i Sent: Thursday, May 04, 2017 (b)(6) ! 3:03-PM.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.- To: Conway, Molly E - OSEC Cc: Proseus, Gregory (HELP Committee) Subject: RE: Introduction Thank you Greg! Molly, the Senator was interested in a quick phone call next week w/ Secretary Acosta re: his April 28 letter to the Secretary on the fiduciary rule. Can you help facilitate this? Saat Alety Legislative Assistant U.S. Senator Tim Scott (R-SC) 717 Hart Senate_Office __ Building _I_Washington,_ DC 20510 l_________ __(~l(~)___ ______ _J I b) (6)________________________ ___! L_________________________ ( Saat: good sitting down with you today. I would like to introduce you to my colleague, Molly Conway, who is my Labor & Pensions Counsel predecessor and is now at the Department of Labor with Secretary Acosta. Molly left huge shoes to fill. Molly: please meet Saat Alety, Senator Scott's new pensions Legislative Assistant. I believe Senator Scott would like to set up a phone call with Secretary Acosta. Did you know that everyone refers to me as "new Molly?" I'll let you two take it from here. My best to you both! Greg Gregory P. Proseus Labor & Pensions Counsel C01mnittee on HealtR Education, Labor, and Pensions Senator Lamar Alexander (R-TN), Chainnan l_________ _tbJ(6).__ ______ ] DOL-17-0281-M-000063 AO 836892 OSEC 001027 From: To: CC: Sent: Subject: David Weiskopf Palmer, Wayne D - OSEC Crowley, Daniel F. C. 5/4/2017 3:38:34 PM FW: Congratulations & Meeting Request Just wanted to thank you for receiving the official acknowledgement of our request and I do hope we can find a time for the meeting to happen that works for everyone. From: David Weiskopf Sent: Wednesday, May 03, 2017 12:05 PM To: 'Palmer.wayne.drd;dol.gov'i (b)(6) ] Subject: Congratulations & MeetinfR"equesr-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. Dear Mr. Palmer. I am writing on behalf of Larry Raffone, CEO of Financial Engines (FNGN), to request a meeting with Secretary Acosta. Financial Engines was established over 20 years ago and is America's largest registered independent investment advisor, providing high-quality, conflict-free investment advice to millions of people who work at many of the country's largest employers. Mr. Raffone would appreciate the opportunity to discuss ,vith the Secretary ne~i steps on the fiduciary duty rule (the importance of having the strongest possible one) and appropriate investor safeguards (that work for everyone - consumers and advisors). We have been actively involved in this issue for some time and care deeply about getting it right. We understand that the Secretary has an e~iremely busy schedule, so are flexible and can meet at his convenience. Thank you for your consideration of this request. Sincerely, David Weiskopf Vice President Financial Engines (direct) r_~--~--~--~-_[b.i:ifC_~--~--~-J (cell) Call. r_~--~--~--~-_[b.i:ifC_~--~--~-J Visit. 1050 Enterprise Way, 3rd Floor. Sunnyvale. CA 94089 Click. F inancia!Engines. com NOTICE: This e-mail and any attachments to it may be privileged, confidential or contain trade secret information and is intended only for the use of the individual or entity to which it is addressed. If this e-mail was sent to you in error, please notify me immediately by either reply e-mail or by phone at [-.-.-.-.-.(.b)(G).-.-.-.-.-.1 and do not use, disseminate, retain, print or copy the e-mail or any attachment. All messages sent to and from this e-mail address may be monitored as permitted by or necessary under applicable law and regulations. We cannot accept orders for transactions or other similar instrnctions through e-mail. We cannot ensure the security of information e-mailed over the Internet; please exercise caution when transmitting confidential information such as account numbers and security holdings. DOL-17-0281-M-000064 AO 836892 OSEC 001028 From: To: Sent: Subject: Palmer, Wayne D - OSEC Geale, Nicholas C. - SOL 5/9/2017 7:17:54 PM FW: Congratulations & Meeting Request Poss ible attendee s for Fiduciar y meeting ... i i From: Crowley, Daniel F. C. (b)(6) Sent: Thursday, May 04, 20 iT 2EI9."PM".-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-' To: Palmer, Wayne D - OSEC Cc: Crowley, Daniel F. C. Subject: FW: Congratulations & Meeting Request Dear Wayne, To follow up, congratulations on this new role (it is good to see you following in Steve Law's footstepsJ). As you may know, Financial Engines (NASDAQ:FNGN) is the largest independent financial advisor in the country. Since next steps on the DOL fiduciary rule is one of the biggest outstanding issues you have inherited, I know the Secretary will find their perspective in this important area illuminating. Please let me know if I can provide any additional information, and thank you for your consideration of this meeting request. In any case, I hope you are doing well ... Best regards, Dan Daniel F. C. Crowley Partner K&L Gates LLP 1601 K Street NW Washington, DC 20006 Phone: l-.-.-.-.-.-.-xb)iaS.-.-.-.-.-.-.: __ Fax:_l."""""""""-.-}b)(GJ.C"C"C"C"C"C"-: ___________ _ !.______________________ ( b)( 6) .-.-.-.-.-.-.-.-.-.-___! www.klqates.com From: David Weiskopf Sent:Thursday,May x-.--,~~~--"~o~-~o.o.-.-.-'-.-.".~---'-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' To: i (b)(6) ! Cc:'crowley, Daniel F. C. Subject: FW: Congratulations & Meeting Request Ju st wanted to thank you for recei ving the official ackno w ledgement of our reque st and I do hope we can find a time for the meeting to happen that w ork s for everyone. DOL-17-0281-M-000065 AO 836892 OSEC 001029 From: David Weiskopf Sent: Wednesday, May 03, 2017-_JZ~_Q?.J?.M ________________________________________ , To: 'Palmer.wayne.d@dol.gov' ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-, Cc: "Dennis Kelleher" i (b)(6) !Stephen Hall" i (b)(6) i Dear Secretary Acosta: '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. Congratulations on your nomination and confirmation as Secretary of the storied Department of Labor. As you know, the Department is critically important to tens of millions of American workers and their families. Often, the decisions the Department makes directly affect their standard of living and quality of life. You have assumed an awesome responsibility and a heavy burden and we look forward to working with you and the Department to ensure that the interests of America's workers and those saving for retirement are protected and promoted. On behalf of Better Markets, I am writing to request a meeting with you to discuss the Department's best interest or fiduciary duty rule ("Rule"), as you lead the re-examination of the Rule that President Trump ordered in his February 3, 2017, Memorandum. From years of work, we know there are many strong views on all sides of the issues raised by the Rule and we appreciate your willingness to listen carefully to all interested parties on this critical subject before coming to any conclusions. As you may know, Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street, and make our financial system work for all Americans again. We are also a founding member of the Save Our Retirement coalition, a group of prominent retiree, labor, and public interest organizations that have considered these issues for many years and have concluded that the Rule is an essential reform necessary to protect those saving for retirement. For years, Better Markets has been very active in its support, as reflected in its multiple comment letters, meetings, and testimony at the hearing convened by the DOL during the rulemaking process. Our most recent submission was our comment letter filed with the DOL on April 17, 2017, available at http://www.bettermarkets.com /sites/default/files/DOL-%20CL-%20Definition%20of%20the%20Term%20Fiduciary:: Proposed%20Delay%20on%20Applicability%20Date-%2020170417.pdf. In our view, the Rule is an extraordinarily important and thoroughly considered reform that will protect millions of Americans struggling to save for retirement from powerful conflicts of interest, some obvious and overt, but some subtle and nuanced, resulting in products being sold that simply are not in the best interests of those saving for retirement. As Upton Sinclair famously said, "it is difficult to get a man to understand something when his salary depends upon his not understanding it." That is to say, the existing permitted conflicts of interest can work in insidious ways, even upon those with the best of intentions. The Rule will confer huge benefits by saving workers and retirees tens of billions of dollars every year in otherwise lost retirement savings, while imposing modest costs on the advisory industry. As the voluminous, years-long record accumulated by the Department prior to finalizing the rule demonstrates, we believe there is no sufficiently weighty or valid justification for any further delay of the Rule, nor any basis for amending or repealing it. We would appreciate the opportunity to share our thoughts with you on these important issues in person and to answer any questions you may have for us. I hope you will agree to meet with us, and we look forward to hearing from you. DOL-17-0281-M-000067 AO 836892 OSEC 001031 Sincerely, Dennis M. Kelleher President & CEO Stephen W. Hall Legal Director & Securities Specialist Better Markets 11825 K Street, NW#1080 I Washington, DC 20006 . .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., J!>H~L. ________ : I Fax: :._ ________ J!>H~L_________ : M a1n: t__________ www.bette rmarkets.co m I @bettermarkets BETTER MARKETS Sign up for email updates from Better Markets here. DOL-17-0281-M-000068 AO 836892 OSEC 001032 From: Sent: To: Subject: Hoelscher, Douglas L. EOP/WHO 1 (b)(6) '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Tuesday, May 9, 2017 6:56 PM Palmer, Wayne D - OSEC RE:Fiduciary Rule update? : Ok, thanks. (b }(6} From: Palmer, Wayne D - OSEcj J Sent: Tuesday, May 9, 2017 7: O':i"PT'i/f.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' To: Hoe Ischer, Doug Ias L. EOP/WHO !___ _______________________________ ( b )( 6) -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-___i Subject: RE: Fiduciary Rule update? Nick Geale, our Acting Solicito r, is the one you need to talk to. I've asked him to get in touch w ith you as soon as possible. r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-, From: Hoelscher, Douglas L. EOP/WHOi (b)(6) ! Sent: Tuesday, May 09, 2017 2: 09 PM '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' To: Palmer, Wayne D - OSEC Subject: FW: Fiduciary Rule update? Hi Wayne- is there someone on your tea m who cou ld provi de Leeann {and me) an update on the Fiduciar y rule front vi a phone? And/or are there some ta lking points you can relay? Sincere ly, Doug From: Veatch, Leeann (Gov Office)iL--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-) (b)(6) i Sent: Tuesday, May 9, 2017 1:55 PM .--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-; ____ !.~_: __ ~?._~_l_s_c_~~:-~-~H~L._______ _: e: l_________________________________ ( b) (6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ! DOL-17-0281-M-000087 AO 836892 OSEC 001051 From: To: CC: Sent: Subject: Attachments: Gardner, Janelle A - OSEC Conway, Molly E - OSEC; Geale, Nicholas C. - SOL Palmer, Wayne D - OSEC 5/17/2017 2:31 :32 PM FW: Fiduciary Org Request for Meeting with RAA on 5/22 SIMS - 830379.pdf FYSA- this gentlemanwants to meet with RAA on Monday to discussfiduciaryand he is going to the FIU/Miami Chamber receptionthat RAA is going to Monday eveningas well.... Janelle Gardner Department of Labor From: McDaniel, Keshia - OSEC Sent: Wednesday, May 17, 2017 1:38 PM To: Gardner, Janelle A - OSEC Subject: Fiduciary Org Request for Meeting with RAA on 5/22 Gerald Grant from AALU keeps contacting the Scheduling Office in efforts to get 15 minutes with Secretary Acosta to speak about the Fiduciary Rule. He will be attending the FIU reception on Monday night. His contact information is: :_________________________________ ( b)(6) -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-._i and :___________ .lbJ.l6L. ________ _i Keshia McDaniel Special Assistant, Scheduling & Advance, Qfflg?__ o._f_th_E!__?_?g_~E!_t.9Jy _________________ _ I (C) !-.-.-.-.-.b.-s-.-.-.-.-.1 I (E) i (b)(6) i ( D) !-.-.-.-.-.b.-s-.-.-.-.-.1 '-.-.-.-.-.(!.li.D. ________ , '-.-.-.-.-.(!.li.D. ________ , '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-' U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, DC 20210 DOL-17-0281-M-000088 AO 836892 OSEC 001052 From: Sent: To: Lineberger, Timothy L - OSEC Wednesday, May 17, 2017 4:28 PM :._.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-(b)(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-___: L-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.(ii)tsY-"-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 Nini O J. EOp/WHO; Flynn, Matthew J. Cc: Subject: Attachments: EOP/WHOj (b)(6) j Rogers, Jillian B - OSEC;Smith, Gavin J - OSEC;Palmer,Wayne D - OSEC;Hazelton, Jennifer - OSEC DOL Comms Report 5/17 DOL Comms Report 5-17.docx See attached. Thanks, --Tim Tim Lineberger Department of Labor L__________ (~J1!5J __________ _: Social Media Highlights https://twitter.com/SecretaryAcosta/status/864940379749134336 Apprenticeship is a great investment not only for the apprencetice, but also for the public & private sector. #ApprenticeshipWorks https://twitter.com/SecretaryAcosta/status/864917205179301889 For Nafis, apprenticeship was as valuable as college. The ability to guide his learning & career changed his life. https://twitter.com/USDOL/status/864819078694883328 For every dollar spent on apprenticeship, employers get an average of $1.47 back. Learn more: http://dol.gov/apprenticeship #ApprenticeshipWorks https://twitter.com/SecretaryAcosta/status/864813962248024064 Arrived in Germany, and learning about their apprenticeship programs. Great example set here of why #ApprenticeshipWorks! #DOLatG20 DOL-17-0281-M-000089 AO 836892 OSEC 001053 From: To: CC: Sent: Subject: Gardner, Janelle A - OSEC Zyble, David; Palmer, Wayne D - OSEC Rich White 5/18/2017 1: 15:54 PM RE: Meeting Good afternoon Mr. Zyble, Thank you for your email. We will review the Secretary's calendar and be in touch. Sincerely, Janelle Gardner Department of Labor From: Zyble, Sent:Thursday,May To: Palmer, Wayne D - OSEC Cc: Gardner, Janelle A - OSEC;Rich White Subject: Meeting Mr. PalmerThe following note to Secretary Acosta is sent to request a meeting between him and the Chairman/CEO of Jackson National Life. Thank you. The Hon. Alexander Acosta Secretary U.S. Department of Labor 200 Constitution Ave., NW Washington, D.C. 20001 Dear Secretary Acosta: Congratulations on your confirmation as Secretary of Labor and the re-commencement of your service to our country. Thank you for taking on the important responsibility of advancing the interests of America's workers and their employers. We look forward to working with you in the months and years ahead. In this instance, I write to request a meeting between you and Barry Stowe, Chairman and Chief Executive Officer of Jackson National Life. Jackson is the nation's largest provider of guaranteed lifetime income products. Jackson employs more than 4,500 workers and manages more than $181 billion in fixed and variable annuities for over 1.5 million investors, including approximately $99 billion in annuities held in accounts that qualify as Section 408 Individual Retirement Annuities. Jackson is a subsidiary of London-based Prudential, plc, one of the largest financial services firms in the world. Prudential, plc (along with its subsidiaries in the US, Asia, Africa, and Europe) has 24 million life customers worldwide, employs 23,500 associates worldwide, and has a 168-year history of providing financial security throughout the world. Jackson's insurance products are offered by more than 50,000 financial advisors, who are affiliated with more than 600 independent broker-dealers, wirehouses, financial institutions, and independent DOL-17-0281-M-000090 AO 836892 OSEC 001054 insurance agencies. Jackson is also affiliated with four retail broker-dealers with a network of more than 3,200 registered representatives, who deal directly with investors seeking advice. Thus, Jackson has a unique perspective on the critical issue of guaranteed lifetime income, as both a manufacturer and as a retail distributor of retirement savings and income products. The purpose of your meeting with Mr. Stowe would be to discuss the "fiduciary rule" and its implications for guaranteed lifetime income during America's current retirement crisis. In addition, Mr. Stowe would welcome the opportunity to enter into a broader dialogue with you regarding the retirement crisis and suggest ways in which he and Jackson can help you to address this crisis. Mr. Stowe is an international leader in the retirement services industry, with a wide-ranging network of relationships, including with senior members of Congress like Chairman Lamar Alexander of the Senate Health, Education, Labor, and Pensions Committee. He is eager to meet and work closely with you in your new role. We also strongly encourage you to accept the invitation of the Chief Executive Officers of the financial services trade associations (the "joint trades") to meet with you to discuss the fiduciary rule. Your meeting with Mr. Stowe would be a supplement to that meeting, not a substitute. Thank you in advance for agreeing to meet with Mr. Stowe. If you have any questions, or to facilitate scheduling the I look forward to hearing from you. meeting, please contact me at [-.-.-.-.-.-.(.bffsf.-.-.-.-.-.1 Sincerely, David A. Zyble Assistant Vice President Jackson National Life DOL-17-0281-M-000091 AO 836892 OSEC 001055 From: To: CC: Sent: Subject: Gardner, JanelleA - OSEC Geale, NicholasC. - SOL; Conway, Molly E - OSEC Palmer,Wayne D - OSEC 5/18/2017 12:56:53 PM FW: call with Senator Blunt Blunt wants to talk Fiduciary ... Janelle Gardner Department of Labor From: Houston-Carter,Courtney(Blunt)i (b)(6) ] Sent: Thursday, May 18, 2017 12:53 PM'-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' To: Gardner,Janelle A - OSEC;Eddings,Richard(Blunt) Subject: RE:call with Senator Blunt Hi Janelle. Senator Blunt would like to discuss the fiduciary rule and its pending implementation. From: Gardner, Janelle A- OSEC [mailto:i (b)(6) ! Sent: Thursday, May 18, 2017 __ 12~03__ 2M._'. __________________________________________________________ , To: Eddings, Richard (BIunt) !.__ __________________________________ ( b)( 6)-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. i Cc: Houston-Carter, Courtney (Blunt) 1 (b)(6) ! Subject: RE: call with Senator B Lunt '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-." He will be at the WH then. Any word on topic? Janelle Gardner Department of Labor From: Eddings,Richard (Blunt) o-.-.-.-.-.-.-.-.-.-.-.-....-.-.-.-.-.-.-.-.-.-.-.-..-.-.-.-..-.-.-.-.-.-.-.-.-.-.-.-....-.-.-.-.-." Sent: Thursday, May 18, 2017 11:26 AM To: Gardner,Janelle A - OSEC Cc: Houston-Carter,Courtney (Blunt) Subject: RE:call with Senator Blunt Okay. How about Tuesday 5/23 at 10:30 am eastern? From: Gardner, Janelle A- OSEC [mailto:i (b)(6) ! Sent: Thursday, May 18, 2017 11:06 AM o-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Eddings, Richard (Blunt)! (b)(G) i Cc: ~ouston-Carte~, Courtney (Blunt) i (b){6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 SubJect: Re: call with Senator B Lunt .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-' The Secretary is at the G-20 in Germany ....unsure tomorrow is possible. Still in meeting- will circle back later today. On: 18 May 2017 11:04, "Eddings, Richard (Blunt)"~ Courtney is co pied to answer any questions. (b)(6) !wrote: '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' DOL-17-0281-M-000092 AO 836892 OSEC 001056 Tomorro w around 1pm or 1:15 EAS TE RN would be great. (b)(6) From: Gardner, Janelle A- OSEC [mailto:~ ! Sent: Thursday, May 18, 2017 10:54 AM L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. To: Eddings, Richard (BIunt) l______________________________________ (b)( 6)-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. i Subject: Re: call with Senator Blunt In a meeting right now. Will circle back shortly. what's it regarding? On: 18 May 2017 10:21, "Eddings, Richard (Blunt)" Hello! j (b)(6) ~rote: '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.' Senator Blunt asked me to arrange a call with Secretary Acosta. Can you help me arrange that? ricahrd Richard Scheduler Senator Roy Blunt (MO) l___________ {bJ{6) .-.-.-.-. ! Follow Senator Blunt On Facebook & Twitter For The Latest News DOL-17-0281-M-000093 AO 836892 OSEC 001057 From: To: CC: Sent: Subject: Conway, Molly E - OSEC Geale, Nicholas C. - SOL; Palmer, Wayne D - OSEC Gardner, Janelle A - OSEC 5/18/2017 7:08:10 PM RE: Fiduciary Calls Adding Janelle. From: Conway, Molly E - OSEC Sent: Thursday, May 18, 2017 6: 16 PM ~~~r=:~~,F~i~~i~l~s ~~l~s SOL; Palmer, Wayne D - OSEC ; ; l ________________ l~l(~l______________ l Wayne and Nick- Below are the suggested calls for the Secretary to make on Monday night. If he agrees, we can have someone reach out to the offices to get numbers and give a time block I provided the calls in order of importance / call order as well: DOL-17-0281-M-000094 AO 836892 OSEC 001058 From: To: Sent: Subject: Palmer, Wayne D - OSEC Hazelton, Jennifer - OSEC 5/19/2017 11 :52:52 AM Question re: Calls Jennifer, Below is the list of recommended Fiduciary calls Molly drafted. Would you please ask RAAif he wants to do these? If he agrees, we would schedule calls for the afternoon/ evening on the night before the op-ed runs: DOL-17-0281-M-000095 AO 836892 OSEC 001059 From: To: CC: Sent: Subject: Palmer, Wayne D - OSEC Alex Acosta [.-.-.-.-.-.-.-.-.-.1-ijiisi"-.-.-.-.-.-.-.-.-.1 Hazelton, Jennifer - OSEC 5/19/2017 12:30:26 PM FW: Question re: Calls As requested ... From: Hazelton, Jennifer - OSEC Sent: Friday, May 19, 2017 12:14 PM To: Palmer, Wayne D - OSEC Subject: Re: Question re: Calls Yes will do On: _19May 2017 17:52, "Palmer, Wayne D- OSEC" <~ Jenn 1fer, {b){6) I wrote: i L.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Below is the list of recommended Fiduciary calls Molly drafted. Would you please ask RAAif he wants to do these? If he agrees, we would schedule calls for the afternoon/ evening on the night before the op-ed runs: -.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.- DOL-17-0281-M-000096 AO 836892 OSEC 001060 Rogers, Jillian B - OSEC Palmer, Wayne D - OSEC; Conway, Molly E - OSEC; Geale, Nicholas C. - SOL 5/19/2017 1 :04:36 PM FW: Fiduciary question From: To: Sent: Subject: (b)(5) Here's the story: http://www.reuters.com/article/us-usa-congress-fiduciary-idUSKCN i 18F1 UZ?il=O i J_~J(_?t ________________ l______________________________________________________ J From : L.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ( b) (6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-___! Sent: Friday, May 19, 2017 10:26 AM To: Rogers, Jillian B - OSEC Subject: Fiduciary question Thanks for taking my call. I'm trying to track down this report. Did the secretary tell Sen. Scott that freezing the fiduciary/conflict-of-interest rule in a way that would stick a priority and that he is in constant communication with the White House? Is freezing the rule a priority? Is he in constant communication with the White House? Thanks much Lisa Lisa l....ambert U.S. Financial Regulation Corresponde nt f:f.euters 1333 H St NW Was hin~ton,_DC_20005 __ , Phone_! Mobile.! {b){6) i ! r.-.-.-.-.-.-.-.-..!.~~~~~~~~~~~~~~-J-.-.-.-.-.-.-.-.-.-.-. ! (b)(6) .. ! '-.-www..reuters..com.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. !.__________________ (b)(6) .-.-.-.-.-.-.-.___: DOL-17-0281-M-000097 AO 836892 OSEC 001061 From: To: Sent: Subject: Attachments: Shayla Thompson Palmer, Wayne D - OSEC; Heimlich, Judith - EXECSEC; Talk to DOL 5/19/2017 4:21 :21 PM Open Letter to Secretary Acosta Letter to Acosta 5-19-2017 Final.pdf Good Afternoon, Please find attached an Open Letter to Secretary Acosta follmving up on our prior request for a meeting. An excerpt was also published today in USA Today. Thank You Shayla Thompson Executive Assistant to the Executive Director National Employment Law Project 2040 S Street NW, Lower Level Washington, D.C. 20009 L.-.-.-.-.-.-.-.(b)( 6) .-.-.-.-.-.-.-___i Ph: [_________ _Jbl(SL. _____ ___! DOL-17-0281-M-000098 AO 836892 OSEC 001062 From: Conway, Molly E - OSEC Sent: Monday, May 22, 2017 10:37 AM Gardner, Janelle A - OSEC To: Cc: Subject: Attachments: Palmer, Wayne D - OSEC Fiduciary Call List.docx Fiduciary Call List.docx Attached so you can just add the phone numbers! DOL-17-0281-M-000099 AO 836892 OSEC 001063 From: To: CC: Sent: Subject: Gardner, Janelle A - OSEC Conway, Molly E - OSEC Palmer, Wayne D - OSEC 5/22/2017 11:36:59 AM RE: Fiduciary Call List.docx Thanks! Janelle Gardner Director of Scheduling Department of Labor :__ __________ (b)(6) -.-.-.-.-.-.! From: Conway, Molly E - OSEC Sent: Monday, May 22, 2017 11:37 AM To: Gardner, Janelle A - OSEC Cc: Palmer, Wayne D - OSEC Subject: Fiduciary Call List.docx Attached so you can just add the phone numbers! DOL-17-0281-M-000100 AO 836892 OSEC 001064 From: To: Sent: Subject: Attachments: Hazelton, Jennifer - OSEC Palmer, Wayne D - OSEC; Geale, Nicholas C. - SOL; Conway, Molly E - OSEC; Ray, Paul J - OSEC 5/22/2017 12:36:31 PM Clean version of Op-Ed for WSJ OpEd - Principles - Final (2) - JH review.docx Let me know your comments. WSJ ideally would like a word count of around 700. We're at just under 1,000. Please look for any places we might be able to trim. We need to get our version to them within the next hour or so. DOL-17-0281-M-000101 AO 836892 OSEC 001065 From: To: Sent: Subject: Conway, Molly E - OSEC Palmer, Wayne D - OSEC 5/22/2017 3:32:58 PM FW: ATTACHED:Secretary Acosta Op-Ed WHY is exec sec on this?? From: Hazelton, Jennifer - OSEC Sent: Monday, May 22, 2017 3:32 PM To: RAAcosta Cc: Way, Elizabeth - EXECSEC; Conway, Molly E - OSEC;Geale, NicholasC. - SOL;Gardner,Janelle A - OSEC Subject: FW: ATTACHED:SecretaryAcosta Op-Ed Mr . Secretary, See the WSJ's proposed edits below - along with James' comments on further editing. Awaiting your decision on this. Best, Jennifer From: Taranto, James!_____________________________ (b )( 6) .-.-.-.-.-.-.-.-.-.-.-.-.J Sent: Monday, May 22, 2017 3:29 PM To: Hazelton, Jennifer - OSEC Subject: Re: ATTACHED:SecretaryAcosta Op-Ed OK, here you go. My deputy did all the editing, after I instructed him to tread lightly. ff we've lost anything vital, there 's room to add about 50 words. He put in ALL CAPS any changes that he thought might affect the substance. you can get back to me by 4 p.m., we should be able to wrap it up in time to publish online by 5 [f By Alexander Acosta text President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow men and women. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modern world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modern world regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans -workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. DOL-17-0281-M-000102 AO 836892 OSEC 001066 Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. LAST SUMMER a federal judge held that "the rule is defective to its core" and BLOCKED ITS IMPLEMENTATION. Now the LABOR DEPARTMENT will engage in a new rule-making process to seek comment both on the scope of our authority and the wisdom of the rule. Another example is the Fiduciary Rule, WHICH WOULD MAKE IT HARDER FOR AMERICANS TO RECEIVE FINANCIAL ADVICE. Several courts have upheld this rule as consistent with the authority that Congress delegated TO THE LABOR DEPARTMENT. Nonetheless, the Fiduciary Rule as written does not appear to comport with PRESIDENT TRUMP'S approach. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's CRITICS, by contrast, say it would limit choice in investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration env1s10ns. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for delay. We have carefully considered the record in this case and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this rule cannot be postponed. Instead the LABOR DEPARTMENT WILL seek public comment on how to revise the rule. Under the Obama administration, the Securities and Exchange Commission declined to PARTICIPATE in the rule-making process. Yet the SEC has critical expertise. I hope in this administration the commission will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Cutting the thicket, however, would leave Americans vulnerable in the long run. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is U.S. secretary of labor. DOL-17-0281-M-000103 AO 836892 OSEC 001067 From: To: Sent: Subject: McGinley, William J. EOP/WHO Palmer, Wayne D - OSEC 5/22/2017 4:34:13 PM Re: here you go Can I have it in a word document? Sent from my iPhone .--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. {b){6) On May 22, 2017, at 4:33 PM, Palmer, Wayne D- OSEC j I wrote: i...-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Here's the final version for clearance. r 1 Fro?1: "Hazelton, Jennifer - OSEC" (b )(6) Subject: FW: here you go '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.Date: 22 May 2017 16:31 .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-., To: "Palmer, Wayne D - OSEC" <1.__ _____________________ (b)(6) ________________________ ! From: Taranto, James i (b)(6) Sent: Monday. May 22. 2017 4:20 PM To: Hazelton. Jennifer - OSEC: RA Acosta Subject: here you go i This incorporates all your edits; I made only a couple of style fixes (e.g., we write "Congress's," not "Congress"') in the reinserted graf. By Alexander Acosta President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. American workers and American families deserve good, safe jobs, and unnecessary impediments to job creation are a disservice to all working Americans. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow men and women. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modern world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modern world regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans DOL-17-0281-M-000104 AO 836892 OSEC 001068 -workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. Last year a federal judge held that "the rule is defective to its core" and blocked its implementation. Now the Labor Department will engage in a new rule-making process, proposing to rescind the rule. Another example of a controversial regulation is the Fiduciary Rule. Several courts have upheld this rule as consistent with Congress's delegated authority. Nonetheless, the Fiduciary Rule as presently written does not appear to comport with President Trump's approach. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's critics, by contrast, say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this Administration env1s10ns. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for delay. We have carefully considered the record in this case, and the law, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise. I hope in this administration the commission will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rule of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frustrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable in the long run. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is U.S. secretary of labor. DOL-17-0281-M-000105 AO 836892 OSEC 001069 From: To: BCC: Sent: Subject: Attachments: Pa Imer, Wayne .D.-_OSE C .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ Bill M cG inley [_______________________________ ( b)( 6 )_____________________________ ___: Geale, Nicholas C. - SOL; Hazelton, Jennifer - OSEC 5/22/2017 4:39:57 PM DRAFT Op Ed for Clearance DRAFT SecAlexAcosta WSJ Op Ed Fiduciary 22 May 2017.docx Attached. DOL-17-0281-M-000106 AO 836892 OSEC 001070 From: Hazelton, Jennifer - OSEC Sent: Monday, May 22, 2017 4:04 PM Geale, Nicholas C. - SOL;Conway, Molly E - OSEC;Palmer, Wayne D - OSEC Rogers, Jillian B - OSEC Release on Fid Rule Op-Ed PR_Fid_Guidance_052217 _410PM - jh review.docx To: Cc: Subject: Attachments: Give the attached doc a once over and let me know that it's good to go. DOL-17-0281-M-000107 AO 836892 OSEC 001071 From: To: CC: Sent: Subject: Attachments: Wayne Davis, May M. EOP/WHO Palmer, Wayne D - OSEC McGinley, William J. EOP/WHO; Staff Secretary 5/22/2017 5:24:26 PM Op-Ed: Cleared by WH DRAFT Sec Alex Acosta WSJ Op Ed Fiduciary 22 May 2017 - Staff Sec 5.22(2) .docx -- Please find attached a few comments from the WH. Thanks for working the future please do loop in Staff Sec. We appreciate it. Feel free any of the edits. with the WHCO here, and to give me a call about in May S. May Davis Assistant White House Staff Secretary 0 ff i c e : r-.-.-.-.-.-.-ibi!lii""-.-.-.-.-.-] :________________________________ (b )(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ! DOL-17-0281-M-000108 AO 836892 OSEC 001072 Palmer, Wayne D - OSEC Monday, May 22, 2017 4:26 PM Hazelton, Jennifer - OSEC;Conway, Molly E - OSEC;Geale,Nicholas C. - SOL FW: Op-Ed: Cleared by WH DRAFT Sec Alex Acosta WSJ Op Ed Fiduciary 22 May 2017 - Staff Sec 5.22(2).docx From: Sent: To: Subject: Attachments: -----0 rig in a I Message-----.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. (b){6) From: Davis, May M. EOP/WHO Sent: Monday, May 22, 2017 5:24 PM . To: Palmer, Wayne D - OSEC Cc: McGinley, William J. EOP/WHO; Staff Secretary Subject: Op-Ed: Cleared by WH i i Wayne -Please find attached a few comments from the WH. Thanks for working with the WHCO here, and in the future please do loop in Staff Sec. We appreciate it. Feel free to give me a call about any of the edits. May S. May Davis Assistant White House Staff Secretary Ce11:l-.-.-.-.-.ibi(ai-.-.-.-.-1 Office: :-.-.-.-.-.-tbj(a>:-.-.-.-.-.: l_________________________ (b )(6) .-.-.-.-.-.-.-.-.-.-.-.-.-i DOL-17-0281-M-000109 AO 836892 OSEC 001073 From: To: CC: Sent: Subject: Attachments: Thanks, Davis, May M. EOP/WHO Palmer, Wayne D - OSEC McGinley, William J. EOP/WHO; Staff Secretary 5/22/2017 5:30:01 PM RE: Op-Ed: Cleared by WH DRAFT Sec Alex Acosta WSJ Op Ed Fiduciary 22 May 2017 - Staff Sec 5.22(3) .docx Wayne! May -----Original Message----From: Davis, May M. EOP/WHO Sent: Monday, May 22, 2017 5:24 PM To: Palmer, Wayne D - OSEC [Cc::::: McGinl:ey_, (b~!)l Ham:: J ..:::EOP:/~HO L________________________________________ (b)(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.i Subject: Wayne Op-Ed: Cleared Staff Secretary by WH -- Please find attached a few comments from the WH. Thanks for working the future please do loop in Staff Sec. We appreciate it. Feel free any of the edits. with the WHCO here, and to give me a call about in May S. May Davis Assistant White 0 House Staff Secretary ff i c e : r-.-.-.-.-.-.-ibi!lii""-.-.-.-.-.-] :________________________________ (b )(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ! DOL-17-0281-M-000110 AO 836892 OSEC 00107 4 From: To: Sent: Subject: Attachments: Palmer, Wayne D - OSEC Hazelton, Jennifer - OSEC; Geale, Nicholas C. - SOL; Conway, Molly E - OSEC 5/22/2017 5:31: 11 PM FW: Op-Ed: Cleared by WH DRAFT Sec Alex Acosta WSJ Op Ed Fiduciary 22 May 2017 - Staff Sec 5.22(3) .docx -----Original Message----F rom: Davis, May M. EO P /WHO [~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-(b)(6}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~J Sent: Monday, May 22, 2017 5:30 PM To: Palmer, Wayne D - OSEC Cc: McGinley, William J. EOP/WHO; Staff Secretary Subject: RE: Op-Ed: Cleared by WH l--~'.'"-~-~'-"-"'-~'.'~-~=--1~ii~r~-~~"--~-"~"'______________________ J~l(~L ____________ i Thanks, Wayne! May -----Original Message----From: Davis, May M. EOP/WHO Sent: Monday, May 22, 2017 5:24 PM To: Palmer, Wayne D - OSEC Cc: McGinley, William J. EOP /WHO L________________________________________ (b)(6) ________________________________________ _: Staff Secretary l__.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Subject: Wayne (b)(6) ____________________________________ i Op-Ed: Cleared by WH -- Please find attached a few comments the future please do loop in Staff any of the edits. from the WH. Thanks for working Sec. We appreciate it. Feel free with the WHCO here, and to give me a call about in May S. May Davis Assistant White 0 House Staff Secretary ff i c e : r-.-.-.-.-.-.-ibi!lii""-.-.-.-.-.-] :________________________________ (b )(6) .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. ! DOL-17-0281-M-000111 AO 836892 OSEC 001075 From: To: Sent: Subject: Conway, Molly E - OSEC Palmer, Wayne D - OSEC; Geale, Nicholas C. - SOL 5/23/2017 10:56:37 AM FW: Secretary Acosta From: Clea ry, David (Alexander) ["-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-tb)[sf-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 Sent: Tuesday, May 23, 2017 10:25 AM To: Conway, Molly E - OSEC Subject: Re: Secretary Acosta I'd encourage you all to maybe set up a staff briefing to go into more explanation asap. This is not being received well. Sent from my iPhone _______________________ (b)(6) .-.-.-.-.-.-.-.-.-.-.-! wrote: On May 22, 2017, at 8:52 PM, Conway, Molly E - OSEC wrote: I (b)(S) I '-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. From: Conway, Molly E - OSEC Sent: Monday, May 22, 2017 7:36 PM To: Rogers, Jillian B - OSEC; Geale, Nicholas C. - SOL; Hazelton, Jennifer - OSEC; Anderson, Byron E - OSEC Cc: Palmer, Wayne D - OSEC Subject: RE: WSJ Piece i i I ! ! (b)(5) I i-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.~ From: Rogers, Jillian B - OSEC Sent: Monday, May 22, 2017 7:30 PM To: Geale, Nicholas C. - SOL; Conway, Molly E - OSEC; Hazelton, Jennifer - OSEC; Anderson, Byron E - OSEC Cc: Palmer, Wayne D - OSEC Subject: RE: WSJ Piece Tweeting out the below text from Secretary now, any issues? Updated guidance on the Fiduciar y Rule; read my op-ed in the @WS J: https://www.wsj.com/articles/derequlatorsmust-follow-the-law-so-requlators-wi ll-too-1495494029 From: Geale, Nicholas C. - SOL Sent: Monday, May 22, 2017 7: 18 PM To: Conway, Molly E - OSEC; Hazelton, Jennifer - OSEC; Rogers, Jillian B - OSEC; Anderson, Byron E - OSEC Cc: Palmer, Wayne D - OSEC Subject: RE: WSJ Piece From: Conway, Molly E - OSEC Sent: Monday, May 22, 2017 7: 10 PM To: RA Acosta Cc: Geale, Nicholas C. - SOL; Palmer, Wayne D - OSEC; Hazelton, Jennifer - OSEC Subject: WSJ Piece Deregulators Must Follow the Law, So Regulators Will Too DOL-17-0281-M-000128 AO 836892 OSEC 001092 As the Labor Depa1iment acts to revise the Fiduciary Rule and others, the process requires patience. By Alexander Acosta May 22, 2017 7:00 p.m. ET President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. American workers and families deserve good, safe jobs, and unnecessary impediments to job creation are a disservice to all working Americans. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow citizens. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modern world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modern world, regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans -workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. Last year a federal judge held that "the rule is defective to its core" and blocked its implementation. Now the Labor Department will engage in a new rule-making process, proposing to rescind the rule. Another example of a controversial regulation is the Fiduciary Rule. Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's critics say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for a complete delay of the rule. We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise in this area. I hope in this administration the SEC will be a full participant. DOL-17-0281-M-000129 AO 836892 OSEC 001093 America is unique because, for more than 200 years, its institutions and principles have preserved the people's freedoms. From administration to administration, respect for the rnle of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frnstrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to regulatory whim. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is secretary c?flabor. Appeared in the May. 23, 2017, print edition. DOL-17-0281-M-000130 AO 836892 OSEC 001094 From: To: CC: Sent: Subject: Rogers, Jillian B - OSEC Conway, Molly E - OSEC; Geale, NicholasC. - SOL; Hazelton,Jennifer- OSEC; Anderson, Byron E OSEC Palmer,Wayne D - OSEC 5/22/2017 7:46:20 PM RE: WSJ Piece Got it. This is scheduled for 7:55pm Read my op-ed in the @WSJ: Deregulators Must Follow the Law, So Regulators Will Too https://www.wsj.com/articles /deregulato rs-must-fo llow-the-law-so-regulato rs-wi ll-too-1495494029 From: Conway, Molly E - OSEC Sent: Monday,May 22, 2017 7:36 PM To: Rogers,Jillian B - OSEC;Geale, NicholasC. - SOL; Hazelton, Jennifer - OSEC;Anderson,Byron E - OSEC Cc: Palmer,Wayne D - OSEC Subject: RE:WSJPiece From: Rogers,Jillian B - OSEC Sent: Monday,May 22, 2017 7:30 PM To: Geale, NicholasC. - SOL;Conway, Molly E - OSEC;Hazelton, Jennifer - OSEC;Anderson, Byron E - OSEC Cc: Palmer,Wayne D - OSEC Subject: RE:WSJPiece Tweeting out the below text from Secretary now, any issues? Updated guidance on the Fiduciary Rule; read my op-ed in the @WSJ: https://www.wsj.com/articles/deregulatorsmust-follow-the-law-so-regulators-wi ll-too-1495494029 From: Geale, NicholasC. - SOL Sent: Monday,May 22, 2017 7:18 PM To: Conway, Molly E - OSEC;Hazelton, Jennifer - OSEC;Rogers,Jillian B - OSEC;Anderson, Byron E - OSEC Cc: Palmer,Wayne D - OSEC Subject: RE:WSJPiece From: Conway, Molly E - OSEC Sent: Monday,May 22, 2017 7:10 PM To: RAAcosta Cc: Geale, NicholasC. - SOL; Palmer,Wayne D - OSEC;Hazelton,Jennifer - OSEC Subject: WSJPiece Deregulators Must Follow the Law, So Regulators Will Too As the Labor Depa1iment acts to revise the Fiduciary Rule and others, the process requires patience. Bv DOL-17-0281-M-000131 AO 836892 OSEC 001095 Alexander Acosta :May 22. 2017 7:00 p.m ET President Trump has committed-and rightly so-to roll back unnecessary regulations that eliminate jobs, inhibit job creation, or impose costs that exceed their benefits. American workers and families deserve good, safe jobs, and unnecessary impediments to job creation are a disservice to all working Americans. As the Labor Department approaches this regulatory rollback, we will keep in mind two core principles: respect for the individual and respect for the rule of law. America was founded on the belief that people should be trusted to govern themselves. Citizens sit on juries and decide the fate of their fellow citizens. Voters elect their representatives to Washington. By the same token, Americans should be trusted to exercise individual choice and freedom of contract. At a practical level, this means Washington should regulate only when necessary. Limiting the scope of government protects space for people to make their own judgments about what is best for their families. The rule of law is America's other great contribution to the modern world. Engraved above the doors of the Supreme Court are the words "Equal Justice Under Law." Those four words announce that no one is above the law, that everyone is entitled to its protections, and that Washington must, first and foremost, follow its own rules. This means federal agencies can act only as the law allows: The law sets limits on their power and establishes procedures they must follow when they regulate-or deregulate. The Administrative Procedure Act is one of these laws. Congress had good reason to adopt it: In the modern world, regulations are akin in power to statutes, but agency heads are not elected. Thus, before an agency can regulate or deregulate, it must generally provide notice and seek public comment. The process ensures that all Americans -workers, small businesses, corporations, communities-have an opportunity to express their concerns before a rule is written or changed. Agency heads have a legal duty to consider all the views expressed before adopting a final rule. Today there are several regulations enacted by the Obama administration that federal courts have declared unlawful. One is the Persuader Rule, which would make it harder for businesses to obtain legal advice. Even the American Bar Association believes the rule goes too far. Last year a federal judge held that "the rule is defective to its core" and blocked its implementation. Now the Labor Department will engage in a new rule-making process, proposing to rescind the rule. Another example of a controversial regulation is the Fiduciary Rule. Although courts have upheld this rule as consistent with Congress's delegated authority, the Fiduciary Rule as written may not align with President Trump's deregulatory goals. This administration presumes that Americans can be trusted to decide for themselves what is best for them. The rule's critics say it would limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors. Certainly, it is important to ensure that savers and retirees receive prudent investment advice, but doing so in a way that limits choice and benefits lawyers is not what this administration envisions. The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for a complete delay of the rule. We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans' ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise in this area. I hope in this administration the SEC will be a full participant. America is unique because, for more than 200 years, its institutions and principles have preserved the people's DOL-17-0281-M-000132 AO 836892 OSEC 001096 freedoms. From administration to administration, respect for the rnle of law has remained, even when Americans have been bitterly divided. Some who call for immediate action on the Obama administration's regulations are frnstrated with the slow process of public notice and comment. But this process is not red tape. It is what ensures that agency heads do not act on whims, but rather only after considering the views of all Americans. Admittedly, this means deregulation must find its way through the thicket of law. Casting aside the thicket, however, would leave Americans vulnerable to regulatory whim. The Labor Department will roll back regulations that harm American workers and families. We will do so while respecting the principles and institutions that make America strong. Mr. Acosta is secretary c?flabor. Appeared in the May. 23, 2017, print edition. DOL-17-0281-M-000133 AO 836892 OSEC 001097 From: To: Sent: Subject: Conway, Molly E - OSEC Geale, Nicholas C. - SOL; Palmer, Wayne D - OSEC 5/23/2017 12:03:56 PM FW: TEST Foxx Statement on the Fiduciary Rule From: Banducci, Andrew i'.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.(b)(6) Sent: Tuesday, May 23, 2017 11:54 AM i To: Conway, Molly E - OSEC Cc: Gilroy, Ed Subject: FW: TEST Foxx Statement on the Fiduciary Rule Molly- per our conve rsati on, we' ll be se ndin g thi s out soo n. From: Education & the Workforce Press Sent: Tuesday, May 23, 2017 11:44 AM To: Reddington, Lauren Subject: TEST Foxx Statement on the Fiduciary Rule DOL-17-0281-M-000134 AO 836892 OSEC 001098 FOR IMMEDIATE RELEASE May 23, 2017 CONTACT: Press Office :_________ __(b)(6) ___________ ! Foxx Statement on the Fiduciary Rule WASHINGTON, D.C. - Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce, issued the following statement in response to Labor Secretary Alexander Acosta's decision to allow the fiduciary rule to take effect June 9, 2017: The last administration inflicted a lot of pain on workers, families, and small businesses, and it is going to take bold leadership to undo the damage that's been done and pursue a better course. The secretary's decision does not provide the relief workers and families urgently need from a deeply flawed rule. If this is the path the department is determined to take, then it must quickly develop a responsible solution for dealing with a regulatory scheme that will make it harder and more costly for DOL-17-0281-M-000135 AO 836892 OSEC 001099 low- and middle-income families to save for retirement. For more than 40 years, the Department of Labor has been responsible for enforcing protections for retirement savers. The secretary has a responsibility to work with this committee to address this problem. We will continue to conduct oversight of the flawed rule and advance our own ideas for strengthening protections and ensuring all Americans have access to affordable retirement advice. That is precisely what we have done in recent years, and we expect the secretary will join us in our future efforts. BACKGROUND: During a hearing last week, members of the Subcommittee on Health, Employment, Labor, and Pensions discussed the need to further delay the flawed fiduciary rule because of the harmful consequences it will impose of workers and families saving for retirement. Members also recently expressed their concerns over the rule in a letter sent to the Department of Labor. In 2016, the House Committee on Education and the Workforce approved bipartisan legislation to strengthen protections for retirement savers and protect access to affordable retirement advice for low- and middle-income families. ### Manage Subscription DOL-17-0281-M-000136 AO 836892 OSEC 001100 From: To: CC: Sent: Subject: Smith, Gavin J - OSEC Palmer, Wayne D - OSEC Geale, Nicholas C. - SOL 5/24/2017 11:37:59 AM Re: FOIA re: NEC and COi Nothing to report. My very best, Gavin J. Smith I Communications United States Department of Labor (cal 1/text) ( C): :.-.-.-.-.-.-ii;ifsi"-.-.-.-.-.-.; (W): :.-.-.-.-.-.-ii;ifsi"-.-.-.-.-.-.; Sm ith.Gav in.J @do l.gov From: "Palmer, Wayne D - OSEC" Date: Wednesday, May 24, 2017 at 11:25 AM To: "Conway, Molly E - OSEC" {_ _______________________ J~)J~L. _______________________ j "Mehrens, Nathan P - OSEC" r-.-.-.-.-.~-.-.~---.-.-.-.-.-iii)fsi-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-j "Bozz~t~, RObert F ~ OS~ C" c..~--~--~-;~--~-~--~--~--~--~--~--~--~--~x@~L "Ai~derso ~, Byron E - OSEC . (b)(6) ; Bolen, Derrick A OSEC '.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-=.-.-.-.-.-.-o--.-.-.-.,.-Cheew1ng, Todd M - OSEC" 1____________________________ J~.l(~J _______________________ ___] "Ellis, Curtis W - OSEC" <[:~:~:~:~:~:~:~:~:~:~:~3~i@:~:~:~:~:~:~:~:~:~:~:~:J'Evan Eric L OS EC" wrote: Circling back on this- discussed with Molly. They are on the list for the larger group meeting and will not be meeting with RAA. Janelle Gardner Director of Scheduling U.S. Department of Labor l___________ (b)(6)-.-.-.-.-._j From: Palmer. Wayne D - OSEC Sent: Thursday. May 25. 2017 8:11 AM To: Conway. Molly E - OSEC Cc: Lineberger, Timothy L - OSEC: Gardner, Janelle A - OSEC Subject: FW: PIABA Request for meeting re DOL best interest fiduciary rule For consideration re: meeting. From: Marnie Lambert :.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.(b)(6).-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-] Sent: Wednesday. May 24. 2017 8:18 PM To: Talk to DOL Cc: Lineberger, Timothy L - OSEC: Palmer, Wayne D - OSEC: Robin Ringo Subject: PIABA Request for meeting re DOL best interest fiduciary rule Please see attached. Regards, Marnie C. Lambert Lt\ W F IR :\I . U. C www .mcli11Yestlaw.co 111 Toll Free: :=:=:=:=:=:1~it~i=:=:=:=:=i Facsimile: :=:=:=:=:=:1~it~i=:=:=:=:=i * Admitted in Ohio and California Ohio Office 4889 Sawmill Road. Suite 125 Columbus. Ohio 43235 Local: :=:=:=:=:=:1~it~i=:=:=:=:=i California Offices One Embarcadero Center Suite 500 San Francisco. California 94111 DOL-17-0281-M-000149 AO 836892 OSEC 001113 445 S. Figu eroa Street 3 1st Floor Los Angeles, Califor nia 90071 Local : :________t~J.m __________i DOL-17-0281-M-000150 AO_836892_OSEC_001114 Conway, Molly E - OSEC Hazelton, Jennifer - OSEC; Palmer, Wayne D - OSEC 5/25/2017 9:54:32 AM RE: Please advise From: To: Sent: Subject: Please just tell them you sent it along to our staff experts. I don't like to give out their e-mail addresses because they have enough on their plates. From: Hazelton, Jennifer - OSEC Sent: Thursday, May 25, 2017 9:43 AM To: Conway, Molly E - OSEC;Palmer, Wayne D - OSEC Subject: FW: Please advise W here do I direct this perso n? From: Julie Mochani (b)(6) Sent: Thursday, May 25, 2017 8:43 AM To: Hazelton, Jennifer - OSEC Subject: Please advise i Good morning Jennifer, I just left a message for you regarding a contact at the DOL that can give specific guidance to the CEO of our firm on progress that we have made readying for the Fiduciary Ruling. Can you point me in the right direction? Thanks so much! Juli e :Vlo cha n , AIF(R) ,\Jational Director , Retirement Plan Sales Th e Pacific Fi nan cial Grou p , In c. 777108th Avenue ,\JE Suit e 2100 Belle vue ~_ Wee\_98004 .-.-., 1 Dire~.t" : i i01,\Jew ~ob ii e : [.______________________________ i Toll free : 800 -735-7199 ext . 3958 (b)(6) NOTICE: This communication may contain privileged or other confidential information. If you have received it in error, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. The Pacific Financial Group, Inc. reserves the right to monitor all email communications through their network. All emails sent, from, or within the TPFG corporate email system may be retained, monitored and/or reviewed. Questions regarding this policy may be sent to j ill d@t pfg.co rn. Thank you. DOL-17-0281-M-000151 AO 836892 OSEC 001115 From: To: CC: Sent: Subject: Conway, Molly E - OSEC Canary, Joe - EBSA Hazelton, Jennifer - OSEC; Palmer, Wayne D - OSEC; Geale, Nicholas C. - SOL; Campagna, Lou EBSA; Turner, Jeffrey - EBSA; Lloyd, Karen - EBSA; Hall, Lyssa - EBSA; Hauser, Timothy - EBSA 5/25/2017 10:33: 16 AM RE: Please advise Thanks. Just treat it however you typically would. Thanks again! From: Canary, Joe - EBSA Sent: Thursday, May 25, 2017 10:33 AM To: Conway, Molly E - OSEC Cc: Hazelton, Jennifer - OSEC; Palmer, Wayne D - OSEC; Geale, Nicholas EBSA; Lloyd, Karen - EBSA; Hall, Lyssa - EBSA; Hauser, Timothy - EBSA Subject: RE: Please advise C. - SOL; Campagna, Lou - EBSA; Turner, Jeffrey - Molly: Got it. We recei ve this kind of inquiry from time to time. We w ill call to get a little more background. We would ' 'i i {b){5) I I l.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.l From: Conway, Molly E - OSEC Sent: Thursday, May 25, 2017 9:54 AM To: Hauser, Timothy - EBSA; Canary, Joe - EBSA Cc: Hazelton, Jennifer - OSEC; Palmer, Wayne D - OSEC; Geale, Nicholas Subject: RE: Please advise C. - SOL Hey Tim (don't read while you're on vacation) and Joe - I'm not sure how you typically handle these requests, but we're just going to tell them we forwarded it on to the staff experts. Thanks, Molly From: Julie Sent:Thursday,May To: Hazelton, Jennifer - OSEC Subject: Please advise Good morning Jennifer, I just left a message for you regarding a contact at the DOL that can give specific guidance to the CEO of our firm on progress that we have made readying for the Fiduciary Ruling. Can you point me in the right direction? Thanks so much! Julie :Vlo chan , AIF(R) ,\Jational Director, Retirement Plan Sales The Pa cific Financ ial Group , In c. 777108th Avenue ,\JE DOL-17-0281-M-000152 AO 836892 OSEC 001116 Suite 2100 Belle vue , WA 98004 1 :i {b}{6} 01 Dire~.t" ! :\lew ~ob ii e : :.________________________________ ! Toll free : 800 -735-7199 ext 3958 NOTICE: This communication may contain privileged or other confidential information. If you have received it in error, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. The Pacific Financial Group, Inc. reserves the right to monitor all email communications through their network. All emails sent, from, or within the TPFG corporate email system may be retained, monitored and/or reviewed. Questions regarding this policy may be sent to l_________ {b) (6)_______ _J Th a n k you . DOL-17-0281-M-000153 AO 836892 OSEC 001117 From: Lineberger, Timothy L - OSEC Sent: To: Friday, May 26, 2017 5:58 PM Conway, Molly E - OSEC;Palmer, Wayne D - OSEC Subject: Fwd: Fiduciary Rule Meeting Do we want to just invite him to one of Tuesday's listening sessions Begin Forwarded Message: From: "Scott Puritz- Rebalance-lRA"i Subject: Fiduciary RuIe Meeting (b)(6) i L--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.. Date: 26 May 2017 18:55 b)( 6) -~-~}__ '.~~-~~~~-~'--~-a-~-~-~--~--=--~-~~-~-o~_J__________ ( I"Line berger, Timothy L - OSEC" !__ _______________________________ ( b)(6).-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-f .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-. Dear Secretary Acosta, Congratulations on your confirmation as Secretary of Labor. I am writing to request a meeting with you to discuss the fiduciary rule and its impact on industry participants and retirement savers. I am Managing Director of Rebalance IRA, a registered investment advisory firm. Our firm is part of the wave of financial service organizations striving to innovate and deliver better results for all retirement savers. I am a strong believer in the free market system. In regulated industries, such as financial services, it is important to have a regulatory "level playing field" to insure that free market dynamics work properly. I would appreciate an opportunity to share my insights on the fiduciary rule based upon real world experience helping clients invest for a financially secure retirement. I appreciate your willingness to listen carefully to all interested parties on this critical subject. I hope that you will agree to meet with me, and I look forward to a thoughtful discussion. Best, Scott Puritz Managing Director DOL-17-0281-M-000154 AO 836892 OSEC 001118 1(, lrlll i E-:v!AIL P110:,m DIRECT (b)(S) ; i !; ! !i--.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-i ! reballance 2 DOL-17-0281-M-000155 AO 836892 OSEC 001119 Lineberger, Timothy L - OSEC Scott Puritz- Rebalance-IRA 5/27/2017 8:57:26 PM RE: Fiduciary Rule Meeting From: To: Sent: Subject: Hello Mr. Puritz, Please see the invitation below and let me know if you wo uld like to attend (you can disregard the rsvp deadline ). Thanks! -- Tim Thank you for your request to meet regarding the Department of Labor's fiduciary rule and related exemptions. Next Tuesday, May 30, Department staff will hold a listening session to hear your individual views, and those of other stakeholder groups that asked to meet, regarding the Secretary's announcement in the op-ed Monday and the FAQs and enforcement policy found below. If time permits, Department staff may also be able to take a few questions. We will also memorialize attendance and the conversation. We are not seeking any type of group advice or recommendations. The meeting will take place at the U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC, on Tuesday, May 30, 2017, at 3:00pm. Please note that this meeting is off-the-record and not for press purposes. This invitation is non-transferrable. Because of limited space, there is a restriction to two persons per organization. If you plan to attend, please RSVP to this email no later than 5:00pm, Friday, May 26, with the full names of all attendees for security purposes. Please plan to arrive at least 10 minutes early to allow time to clear security. Labor Department News Brief U.S. Department of Labor I May 22, 2017 New fiduciary rule guidance from US Labor Department WASHINGTON - Fiduciary rule guidance for financial advisors, retirement plan sponsors, and individual workers and retirees has been published on the U.S. Labor Department's website. This information comes in advance of the rule's June 9 applicability date. Read Frequently Asked Questions. Read the Employee Benefits Security Administration's enforcement policv. Read Secretary Alexander Acosta's op-ed discussing the rule and other regulatory issues (also see attached). ### Media Contacts: DOL-17-0281-M-000156 AO 836892 OSEC 001120 From: Scott Puritz- Rebalance-IRA! (b)(6) Sent: Friday, May 26, 2017 6:54 PM To: Palmer, Wayne D - OSEC;Lineberger, Timothy L - OSEC Subject: Fiduciary Rule Meeting i ' Dear Secretary Acosta, Congratulations on your confirmation as Secretary of Labor. I am writing to request a meeting with you to discuss the fiduciary rule and its impact on industry participants and retirement savers. I am Managing Director of Rebalance IRA, a registered investment advisory firm. Our firm is part of the wave of financial service organizations striving to innovate and deliver better results for all retirement savers. I am a strong believer in the free market system. In regulated industries, such as financial services, it is important to have a regulatory "level playing field" to insure that free market dynamics work properly. I would appreciate an opportunity to share my insights on the fiduciary rule based upon real world experience helping clients invest for a financially secure retirement. I appreciate your willingness to listen carefully to all interested parties on this critical subject. I hope that you will agree to meet with me, and I look forward to a thoughtful discussion. Best, Scott Puritz Managing Director r.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.1 i Pl tiJJ(l1. 1. i _l~J_(_~) ___ I l__ rebalance I RA DOL-17-0281-M-000157 AO 836892 OSEC 001121 From: To: Sent: Subject: Conway, Molly E - OSEC Lineberger, Timothy L - OSEC; Palmer, Wayne D - OSEC 5/27/2017 4:20:44 PM RE: Fiduciary Rule Meeting Defs 3pm. Thanks! From: Lineberger, Timothy L - OSEC Sent: Saturday, May 27, 2017 7:30 AM To: Conway, Molly E - OSEC;Palmer, Wayne D - OSEC Subject: RE: Fiduciary Rule Meeting It looks like they are a pro. From their website: Rebalance IRA, a leading pro-consumer investment firm that is at the forefront of providing Americans with a profoundly better set of retirement investment option s, today shared its end-of- year thanks to the many influential individuals and organizations w ho strive to make retirement investing safer for all Americans. The first "thank you" goes out to U.S. Department ("DOL") of Labor Secretar y Thoma s Perez and Assistant Secretary Phyllis Borzi for their bold leader ship in establishing a fiduciary standard for retirement investing, the mo st pro-consumer set of investment protections in over 40 years . Thi s extraordinarily important reform w ill protect millions of hard working Americans from the conflicts of interest that annually siphon away billions of dollars of hard-earned retirement savings due to inflated commissions, higher fees and poor returns . With the rule in place, everyday Americans will be much better equipped to meet the difficult challenges of investing for a sec ure retirement. Moreo ver, Rebalance IRA believes firml y that the rule will result in positi ve changes in the entire investment advisory market, raising the standard of loyalty and care for the benefit of all retirement savers . --Tim Tim Lineberger Department of Labor L__________ {b)(61.__ ________ ] From: Conway, Molly E - OSEC Sent: Friday, May 26, 2017 7:39 PM To: Lineberger, Timothy L - OSEC;Palmer, Wayne D - OSEC Subject: Re: Fiduciary Rule Meeting Can you google to make sure he should be in the 11am group? I'm not familiar with his company. (b)(6) On: 26 May 2017 18:57, "Lineberger, Timothy L- OSEC" i iwrote: ..-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-' Do we want to just invite him to one of Tuesday's listening sessions Begin Forwarded Message: .-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.From: "Scott Puritz- Rebalance-lRA"i (b)(6) i Subject: Fiduciary Rule Meeting ' Date: 26 May 2017 18:55 ,.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-i ,._T.9-_:_J:.?.!~?~"--'N.