Solicitation of Comments on Proposed Fiduciary Conduct Standard for Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives

January 3, 2020 – Stephanie Lynne

Subject: Your voice matters - Massachusetts is implementing a proposal that would reduce choice access to savings advice
From: Stephanie Lynne

Dear Acting Director Young-Spitzer: I am a licensed financial professional in Massachusetts. I work hard on behalf of my clients every day to help them successfully prepare for major life events such as buying a home, starting a family, sending kids to college, and funding retirement. As such, I am concerned that your recently released proposal to create a state specific fiduciary standard for financial representatives will limit clients' access to professional financial guidance, products, and services, while unnecessarily raising costs for my clients. Brokerage accounts represent an important choice for consumers and provide access to affordable advice, particularly for buy-and-hold investors and for investors with more modest resources. I have concerns about the impact your proposal will have on small savers and investors. The proposal will, among other things, require financial professionals to provide ongoing monitoring services for brokerage accounts in situations when an investor prefers to pay for and receive advice on a transaction-by-transaction basis. I believe this proposal could result in the everyday investor losing access to cost-effective brokerage accounts. We all agree that Americans should be doing more to save for retirement, and we should consider additional options to encourage savings. Over time, the rule proposal will likely result in a shift from brokerage accounts to fee-based advisory accounts whose higher cost structure reflects ongoing monitoring expenses. This shift will not only impact Massachusetts small businesses and their business models, but savers and investors. This limitation on investor choice could force many savers to decide between either advisory accounts that may not suit their needs or preferences or going at it alone without personal assistance from a licensed financial professional. As a result, small savers and investors would not be able to choose what works best for them. I put the best interests of my clients first every day and believe the recently established Regulation Best Interest standard significantly preserves and protects my clients' interests and access to current products and services. I urge you to reconsider your rule proposal and its potential unintended consequences for Massachusetts investors and consumers. It is imperative consumer choice is protected and that no investor loses access to services critical to their financial stability, future goals or life planning. Thank you for your consideration.

Stephanie Lynne
LPL