BOSTON – Secretary of the Commonwealth William F. Galvin is pushing back on remarks made by a U.S. Securities and Exchange commissioner.
Galvin, a strong proponent of the U.S. Department of Labor’s fiduciary rule, which is designed to reduce conflicts of interest for brokers offering retirement service, said he was dismayed by SEC Commissioner Michael Piwowar’s comments last week denouncing the new rule.
“Retirees have been fodder for unscrupulous brokers for years upon leaving their place of employment and rolling over their retirement assets,” said Galvin, a Democrat. “The horrific financial abuses associated with conflicted advice in the area of retirement rollovers has been well documented. I am therefore dismayed that a sitting SEC commissioner would so forcefully join with the industry to attack the rule.”
Piwowar, a Republican, urged the DOL to undo the fiduciary rule, saying it was misguided. He sent a letter to the DOL, saying the rule would harm the relationship between brokers and clients.
Galvin subsequently sent a letter of his own, reiterating his support of the new rule and warning against the impact of Piwowar’s comments.
“Business groups looking to capitalize on Piwowar’s comments are already using them to their advantage,” Galvin said. “The commissioner’s letter was [already] used in court before the Fifth Circuit in litigation aimed at striking down the rule.”
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or you can follow him on Twitter @Eli_Sherman.
