Massachusetts' top securities regulator, Commonwealth Secretary William Galvin, is slamming SEC Commissioner Michael Piwowar's recent comments opposing the Department of Labor's fiduciary rule and is urging Labor to "continue to staunchly defend" the rule.
In this Friday letter to Labor, Galvin stated that "the horrific financial abuses associated with conflicted advice in the area of retirement rollovers have been well documented. I am therefore dismayed that a sitting SEC commissioner would so forcefully join with industry to attack the rule."
Piwowar, a Republican, told Labor in a Tuesday comment letter that the fiduciary rule is troubling because it will "extend beyond retirement accounts and will be disruptive of the broker-client relationship in general."
Labor's fiduciary rule "will have a dramatic impact on the provision of financial services to retail clients throughout the financial services industry," Piwowar said in his response to Labor's request for information.
Galvin stated in his letter to Labor that "business groups looking to capitalize on Piwowar's comments are already using them to their advantage," stating that on Thursday, Piwowar's letter "was used in court before the Fifth Circuit in litigation aimed at striking down the rule."
