Jon Lukomnik Comment Letter to DOL/EBSA on ESG Rulemaking

Jon Lukomnik’s letter to DOL/EBSA about the proposed rule on ESG investing has been co-signed by distinguished academics and investment professionals, along with VEA’s Chair, Vice Chair, and President. Attention: Financial Factors in Selecting Plan Investment Proposed Regulation. To Whom It May Concern: We are writing in opposition to proposed rule RIN 1210-AB95. We believe…

DOL Proposal to Weaken Fiduciary Standards

Fact sheet from the Consumer Federation of America: On June 29th, the Trump Administration rolled out a new regulatory package for retirement investment advice that, if finalized, would allow brokers and insurers to siphon billions of dollars a year out of the retirement accounts of hard-working Americans, putting their ability to afford an independent and…

SEC Broker-Conflict Rules Face Wary Dems, States, and AARP

On June 5th, the Securities and Exchange Commission approved a final regulation that governs the conduct of broker-dealers and their advisors. The name of the guidance is Regulation Best Interest, known as Reg BI. Reg BI won’t apply until June 30, 2020, roughly a year from now, but it is already generating a lot of…

Brunel’s Stewardship Policy

We recommend Brunel’s excellent stewardship policy as a model for institutional investors everywhere. Stewardship is defined as the job of taking care of something, such as a company or property. As investors, we use the term assets. Brunel is committed to responsible stewardship and seeks to contribute to the ‘care’ of all the assets under…

Judge Allows Shareholder Suit Against Wells Fargo Directors to Go Forward

A shareholder suit against the directors of Wells Fargo for negligence and complicity in the creation of millions of fake accounts for the fees has survived an effort at dismissal, raising the possibility of a very rare ruling of liability for board members. [Judge John Tigar] found the complaint properly laid out evidence showing executives…

The Finger-Pointing at the Finance Firm TIAA – The New York Times

TIAA’s image as a benevolent provider of investment advice is in question. Several legal filings — including a lawsuit by TIAA employees with money under the company’s management, and a whistle-blower complaint by a group of former workers — say it pushes customers into products that do not add value and may not be suitable…

SEC should follow the Labor Department’s fiduciary standard – MarketWatch

[F]or [SEC Chairman Jay] Clayton to truly fight for savers and uphold the principles from his speech, he should build upon last year’s Department of Labor fiduciary rule, rather than undermine it and start from scratch….Building from DOL’s rule should be music to Clayton’s ears under his sixth and seventh principles: “effective rulemaking does not…