June13,2016

Ms.BethBridges
ChairwomanoftheBoard
LubbockChamberofCommerce
1500Broadway,Suite101
Lubbock,TX79401

DearMs.Bridges:

WeunderstandthatthemissionoftheChamberistostrengthen,promoteandserveitsmemberbusinesses,
andhavesupportedtheChamberinthepastbecauseofthisbeneficialservice.However,wewereextremely
disappointedtofindthatourlocalChamberisoneofnineorganizationsjoiningthesuitagainsttheDepartment
ofLaborFiduciaryRule.Wecanonlyassumethatthedecisionwasmadewithoutasolidunderstandingofthe
issuesinvolved.

Toillustrate,theChamberopinesinitscomplaint:

ManyoftheLubbockChambersmemberssponsor401(k)sandotherretirementplansfortheir
employeesandwillnegativelybeaffectedbytheRule.AnumberoftheLubbockChambersmembers
arefinancialservicesprovidersandinsurancecompanieswhowillincursignificantcomplianceandother
costsasaresultoftheRulesexpansionoffiduciarystatus.Asaresult,theLubbockChambers
memberseffortstoprovidecompetentandaffordablefinancialproductsandservicestoconsumerswill
beharmed

Infact,wewouldpointoutthat401(k)plansarealreadysubjecttothefiduciarystandardsofERISAandarenot
impactedbythisRule.Inaddition,thereisabsolutelynothingintheRulethatwillaffectmemberseffortsto
providefinancialproductsandservicestoconsumers.TheRuleonlyappliestoadvice,nottothesaleof
product.

ThenewDOLFiduciaryRulerequiresadvicetobefromafiduciary,andinthebestinterestofretirement
investors.Undertheoldretirementrules,somebrokersandinsuranceagentseventhoughtheycall
themselvesadvisorsandtheirfirmsadvertisethattheyprovideadviceareabletoescapefiduciaryduty.
Investorswhobelievetheyaregettingbonafideadviceintheirbestinterestmaynotbe.

Underthenewrule,investoraccesstoadvicewillincrease,notdecrease.Often,investorswhodonotworkwith
afiduciaryonlygetasalespitchfrequentlyfortheproductsthatpaytherepresentativeandtheirfirmthe
most.Asalespitchisnotadvice.Infact,undertheSecuritiesExchangeActof1934,brokersmaynotprovide
substantiveadvice.

Firmsandfiduciaryinvestmentadvisorswhohavetheprivilegeofworkinginthebestinterestofretirement
investorswillearnreasonablecompensationinsteadofhighcompensationthatoftencomesattheexpenseof

1001 MAIN STREET, SUITE 400 LUBBOCK, TX 79401

TEL 806.747.7995 FAX 806.747.8569 WWW.EK-FF.COM

theinvestorsnestegg.Sufficeittosay,weconsiderplacingtheinterestsofbusinessesaheadoftheconsumer
(andourclients)tobeunconscionable.

Thousandsoffiduciariesalreadyserveretirementinvestorsandplans.Thereare11,400RegisteredInvestment
Adviser(RIA)firmsservingasfiduciariestomorethan30millioninvestors,acrossalltypesandsizesofaccounts.
RIAsmanageoradviseon$67Trillioninassetsandemploy750,000individuals.Weknowthefiduciarymodel
works.Itisworkable,itisprofitable,itissustainableanditisinthebestinterestoftheinvestor.

TheDOLconsideredthousandsofcommentsovermorethansixyears,andincorporatedmanysubstantive
suggestionsintotherule.DOLheldhundredsofmeetingsandcallswithstakeholders,testifiedbeforeCongress,
andheardtestimonyfromallwhorequestedtotestify.

Ifthelawsuitsprevail,highcommissionsandhiddenpaymentswouldcontinuetobeharvestedfromthesavings
ofhardworkingAmericansinvestingforretirement,andwouldflowtobanks,brokerdealers,mutualfundsand
insurancecompanies.TheFiduciaryRulesimplyrequiresthatrecommendationstoretirementinvestorsbein
theirbestinterest.

Theissueisnottheformofcompensation.TheDepartmentofLaborachievedaremarkablebalanceinits
FiduciaryRule,increasinginvestorprotectionswhileallowingtraditionalbrokeragecompensationmodelsto
continue.Many,ifnotmostbrokers,wouldbepleasedtobeheldtoafiduciarystandard.

TheDOLFiduciaryRuleisenormouslybeneficialtomillionsofAmericanswhoworkandsacrificetosavefortheir
ownretirement.Asanation,weoughttobeencouragingretirementsecurityandthebestoutcomesforhard
workingretirementinvestors.WebelievethattheChamberwouldagreethatretirementinvestorsdeserve
nothingless,andwearethussurprisedbyyoursupportofthislawsuit.

Intheinterim,unlessanduntiltheChamberwithdrawsfromparticipationinthisanticonsumersuit,please
acceptourresignationfromtheChamber.Ifyouareinterested,wecanbecontactedat(806)7477995,and
wouldbehappytodiscusstheseissueswithyouingreaterdepth.

Respectfully,

HaroldEvensky,CFP,Chairman
JohnSalter,CFP,PhD,Partner
KatieSalter,CPA,Partner
AnneBednarz,CFP
ClayRanck,CFP
Evensky&Katz/FoldesFinancial

CC: AdamD.YoungLocalNewsEditor,AvalancheJournal
JeffKlotzmanNewsDirector,KJTV34

RussPoteetNewsDirector,KLBKTV/KAMCTV

ErikBreonNewsDirector,KCBDTV

1001 MAIN STREET, SUITE 400 LUBBOCK, TX 79401

TEL 806.747.7995 FAX 806.747.8569 WWW.EK-FF.COM