Wall Street regulator cites concerns with Labor Dept's broker rule


May 1 (Reuters) - A leading Wall Street regulator on Friday voiced concerns over the U.S. Labor Department's plan to reduce conflicts at brokers offering retirement advice, saying some aspects of it do not accurately reflect how brokers operate.

The Labor Department's draft rule "is a very good faith effort," said Richard Ketchum, the chief executive of the self-regulatory organization known as Financial Industry Regulatory Authority (FINRA), on the sidelines of a congressional hearing.

But some parts of the draft that describe broker dealing activity, he said, "don't really describe any broker-dealer model that I am aware of."

Ketchum's remarks could help bolster the arguments of the brokerage industry, which has been fiercely lobbying against the Labor Department's rulemaking effort.

More here: http://www.reuters.com/article/2015/05/01/finra-broker-laborrule-idUSL1N0XS1A420150501