Legislative and Regulatory

Testimony Before DOL: Proposed Fiduciary Definition (March 2011)

Testimony Before Department of Labor (March 1, 2011)

Related to Proposed Rule Regarding Definition of "Fiduciary"
Good morning, I am Karen Prange, Executive Director and Assistant General Counsel for J.P. Morgan Chase and Co. I am here today representing our Retirement Plan Services and Worldwide Securities Services lines of business.

J.P. Morgan believes that the Proposed Regulations should be modified to eliminate unnecessary and subjective standards. Rather than determining whether a person is “impartial” or has “adverse” interests, the Proposed Regulations will better serve plan sponsors and participants by requiring objective, written disclosures from service providers regardless of whether or not they will be acting in a fiduciary capacity.

To enable plan sponsors and participants to continue receiving valuable services from providers, J.P. Morgan also believes the various limitations described in the Proposed Regulations should be expanded or clarified to clearly exclude non-discretionary administrative services and to clearly distinguish between the provision of information versus advice. Finally, we believe that existing standards governing plan distribution education and guidance are sufficient, and need not be modified in the final regulations. (Download PDF to read more)

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