WKU News

Dr. Ron A. Rhoades, Assistant Professor of Finance and Chair of the WKU Financial Planning Program in the Gordon Ford College of Business, testified before the U.S. Department of Labor last week regarding its controversial proposed “Conflicts of Interest” rule in retirement advice. Rhoades testified in support of this rule, and suggested modifications to enhance its effectiveness.

The department’s rule is designed to protect 401(k) and IRA investors by mitigating the effect of conflicts of interest in the retirement investment marketplace. These conflicts of interest result in annual losses of about $17 billion per year, according to a White House Council of Economic Advisers analysis, released in February of this year.

“I applaud the U.S. Department of Labor’s proposed rule, which will substantially reduce the conflicts of interest existing today in financial services,” he testified. “Let us preserve the fiduciary standard – the strongest standard of conduct under the law – and in so doing, empower a new era of economic growth and prosperity for all Americans.”

Rhoades is a national expert on the application of fiduciary law to investment and financial advisory activities. His full testimony can be found here: http://www.dol.gov/ebsa/pdf/1210-AB32-2-WrittenTestimony9.pdf