In an article published today in Investment News, Thorn Run's Jason Rosenstock weighs in on the political landscape surrounding the Department of Labor’s pending Fiduciary Duty Rule. The Fiduciary Duty Rule would change the definition of “fiduciary” to apply to more financial advisors, but there has been notable opposition to the change. “The politics have shifted a little,” Rosenstock explains in the article. “Democrats are going to wait to see what the rule says before they weigh in or decide to weigh in.” Rosenstock added that Senator Elizabeth Warren’s (D-MA) position is likely to be a beacon for other Congressional Democrats on the rule. "[Warren] weighs heavily in all political decisions that Democrats have to make,” he said. “[Fiduciary duty] is no exception to that calculus.”
“The politics have shifted a little,” said Jason Rosenstock, a partner at the consulting firm Thorn Run Partners. “Democrats are going to wait to see what the rule says before they weigh in or decide to weigh in.”
In recent years, as DOL has worked on re-proposing the rule that was initially offered in 2010 but then withdrawn amid fierce industry protest, Democrats have signed letters to the agency warning of the unintended consequences of a rule designed to protect workers and retirees from conflicted investment advice as they build their nest eggs.
Another factor keeping Democrats off those missives is that Sen. Elizabeth Warren, D-Mass., has jumped into the fiduciary-duty effort with both feet. She was one of several Democrats who participated in last month's event at AARP.
Over the last several months, Ms. Warren has successfully galvanized House and Senate Democrats on a variety of issues, especially those concerning Wall Street.
“She weighs heavily in all political decisions that Democrats have to make,” Mr. Rosenstock said. “[Fiduciary duty] is no exception to that calculus.”