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IRI: DOL fiduciary rule would harm IRA account holders

In the first year alone, as many as 900,000 accounts would not be opened, and between now and 2030, that number would jump to approximately 20 million, the IRI said.

By Lisa Barron | Updated on March 17, 2014

The Department of Labor’s new proposal to change the circumstances under which an investment advisor is considered a fiduciary under the Employee Retirement Income Security Act would increase costs and prevent access to retirement planning services, especially for those the lower-and middle-income brackets, according to a study by the Insured Retirement Institute.

More than 30 million households, 27 million of which are from the lowest wealth segment, hold assets in full-service, commission-based IRA accounts, said the IRI.  Under the proposed rule, all advice provided through these brokerage accounts would be illegal. 

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