ADISA To Discuss DOL's Proposed Fiduciary Rule

Washington, DC

WASHINGTON, DC— ADISA , the nation’s largest trade association representing the alternative and direct investment industry, will meet with representatives of the U.S. Office of Management and Budget on today and discuss its views of the U.S. Department of Labor’s proposed fiduciary rule and accompanying “best interests contract” exemption. ADISA executive director and CEO John Harrison will be joined by John Grady , ADISA’s president-elect and chairman of its legislative and regulatory committee. They will visit with OMB staff in what is thought to be the last few days or weeks before the OMB permits the DOL to move forward with its proposed rule. As expressed in several comment letters as well as testimony before the DOL last summer, ADISA is extremely concerned that the proposed rule, even with the accompanying exemption, could limit access to financial advice for millions of middle class Americans and potentially block retirement savers from accessing vitally important alternative investments and investment programs such as non-traded REITs and business development companies, according to a prepared statement. “We feel that the fiduciary rule, as proposed, presents the average American retirement saver with a host of unfortunate consequences,” says Grady.  “John Harrison and I will present what we believe to be compelling evidence of the potentially harmful and damaging effects of the DOL initiative to the OMB as its staff performs an analysis of the proposed rule.” The OMB is charged with evaluating the potential economic impact, as well as other budgetary and financial considerations posed by the rule. According to a prepared statement, the Department of Labor has forwarded its as-yet unreleased rule proposal to the OMB, as required. Only a handful of trade groups are slated to meet with OMB staff in order to discuss the possible economic and related ramifications of the initiative, with ADISA being the sole trade association representing the direct investment industry in the meetings. “The majority of trade associations are ready and willing to charge up Capitol Hill on particular issues, but arguing before the Executive Branch is a different matter,” says Harrison. “ADISA, along with SIFMA and others, will continue to present a sound, economic and policy-based rationale for reshaping the proposal so that it can operate in the true best interest of investors.  In our view, that entails an approach whereby access to financial advice and important income producing, non-correlated and diversifying investments are not arbitrarily and put out of the reach of young and middle class retirement investors.” The Alternative and Direct Investment Securities Association is the nation’s largest trade association dedicated to serving alternative investment and securities industry professionals who are active in offering, managing and distributing private and public direct investments. ADISA connects members directly to key industry experts through leading edge conferences, trade shows and publications providing timely trends and education. The association was founded in 2003 and has approximately 4,000 members who are key decision makers representing more than 40,000 professionals throughout the nation. ADISA advocates for and works to maintain the integrity and reputation of the industry by promoting the highest ethical standards and providing education, networking opportunities and resources to its members. Keep an eye out for the trade association’s upcoming 2016 Spring Symposium later this month in San Diego, which will include more than 50 educational sessions, many available for CE credit. There are expected to be more than 700 attendees with sessions specifically designed for broker-dealers, RIAs and registered representatives.