The ERISA Industry Committee Asks SEC to Withdraw Proposed Rule on Financial Technologies

WASHINGTON, October 9, 2023 – The ERISA Industry Committee (ERIC) today submitted a letter to the U.S. Securities and Exchange Commission (SEC) requesting the withdrawal of a proposed rule, “Conflicts of Interest Associated With the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisors” (published August 9, 2023 in the Federal Register) because of the increased costs and uncertainty it will impose on employer-sponsored savings plans, as well as millions of employees who rely on those plans to save for retirement.
“The proposed SEC rule would subject the technology-driven financial wellness tools used by retirement plan participants to broad new review and documentation requirements,” said Andy Banducci, ERIC Senior Vice President, Retirement and Compensation Policy.  “The net effects of the rule should it be implemented:  Financial firms will likely offer less useful information, even as their costs to comply with the rule increase.  Employers will see the value of their financial wellness programs fall.  And participating employees will have reduced access to financial wellness programs which are likely to become less robust and useful over time.”
The full text of the letter from ERIC to the SEC can be found here.


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About The ERISA Industry Committee
ERIC is a national advocacy organization that exclusively represents large employers that provide health, retirement, paid leave, and other benefits to their nationwide workforces. With member companies that are leaders in every sector of the economy, ERIC advocates on the federal, state, and local levels for policies that promote flexibility and uniformity in the administration of their employee benefit plans.