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

January 3, 2020 – Peter Alberding

Subject: Protect Consumer Choice and Retirement Savings!
From: Peter Alberding

Dear Secretary Galvin: I am a constituent and a licensed financial professional in Massachusetts, and work hard on behalf of my clients to help them successfully prepare for major life events such as buying a home, starting a family, sending kids to college and funding retirement. I am concerned that your recently released proposal to create a state-specific fiduciary standard for financial representatives will limit investors' access to professional financial guidance, products and services, while unnecessarily raising costs for my clients. We all agree that Americans should be doing more to save for retirement, and we should consider additional options to encourage savings. However, I have serious concerns about the impact your proposal will have on savers. The proposal will, among other things, require financial professionals to provide ongoing monitoring services for brokerage accounts and satisfy an unworkable conflicts elimination and avoidance standard for current and prospective clients. This business model is economically unsustainable and will result in the everyday investor losing access to cost-effective brokerage accounts. Over time, the rule proposal will likely result in a shift from brokerage accounts into fee-based advisory accounts whose higher cost structure reflects ongoing monitoring expenses. This shift will not only impact small businesses and their business models, but individuals as well. This limitation on investor choice will force middle income savers to decide between moving to accounts that may not suit their needs or preferences, and going at it alone without personal assistance from a licensed financial professional. As a result, investors will not be able to choose what works best for them. I put the best interests of my clients first every day. I strongly support the recently established Regulation Best Interest standard adopted by the Securities and Exchange Commission, which creates a uniform best interest standard across the entire retail marketplace and preserves my clients' access to current products and services. I urge you to reconsider your rule proposal and its unintended consequences for Massachusetts investors and consumers, or at least not move forward with a new state standard until after the full impact of an implemented and enforced Reg BI can be assessed. It is imperative consumer choice is protected and that no investor loses access to advice critical to their financial stability, future goals or life planning. Thank you for your consideration.

Peter Alberding
Senior Vice-President, Investments, Branch Manager
Raymond James & Associates