07 April 2016
Reporter: Drew Nicol

OCC endorses DOL listed options ruling

The Options Clearing Corporation (OCC) is “gratified” that the US Department of Labor’s final fiduciary rule did not limit investors’ ability to hold listed options in retirement funds.

The Department of Labor is currently consulting on changes that will expand the types of conduct that will cause a person or entity to be considered a “fiduciary” under the Employee Retirement Income Security Act and the prohibited transaction provisions of the Internal Revenue Code.

“OCC and the Securities Markets Coalition are studying the Department of Labor’s new fiduciary rule as it relates to the use of listed options,” OCC executive chairman Craig Donohue explained.

“We are concerned that the final rule may limit the ability of brokers to provide education regarding listed options to self-directed investors. Investor education is exactly what is needed in order to promote responsible and prudent use of listed options by investors.”

Online broker TD Ameritrade has joined the coalition and OCC in filing comments.

Donohue added: “We will continue to study the rule, and if appropriate, continue to fight aggressively on behalf of investors who use listed options in their retirement accounts. We also thank those members of Congress who supported us through this process.”

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