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SEC and DOL to Unveil Fiduciary Rule Proposals In The Fall

February 7, 2018

Both the Department of Labor and the SEC will likely roll out their fiduciary rule proposals this fall — and at the same time, ERISA attorneys say, according to ThinkAdvisor.

The DOL will have to come out with something in the fall if it’s to meet the July 2019 deadline to put the rule into effect, Brad Campbell, counsel with Drinker Biddle & Reath and former head of the DOL’s Employee Benefits Security Administration, said in a recent webcast cited by the publication. The DOL’s rule, which purports to force retirement account advisors to put clients’ interests first, went into partial effect in June but its final implementation date was pushed back 18 months following last year’s directive from President Donald Trump to review the rule’s impact.

The DOL will need to have a proposal ready by the fall so it has enough time for a comment period, reviewing the comments, finalizing the rule and publishing it on time, according to Campbell, ThinkAdvisor writes. The SEC, meanwhile, will have to work within the same timeframe to steer clear of any further conflicts with the DOL’s rule, he said, according to the publication. And coordination between the two regulators could result in the same timing for their two proposals, said Fred Reish, partner at Drinker Biddle & Reath, according to ThinkAdvisor.

Meanwhile, several brokerage firms are urging the Certified Financial Planner Board of Standards Inc. to delay the release of its proposed new standards of conduct and wait for the SEC to roll out its own best-interest rule, InvestmentNews writes.

(Getty)

The CFP board was planning to unveil a revised code of conduct at the end of the first quarter of 2018 and put it into effect next January. But taking advantage of the comment period that ended Feb. 2, Ameriprise, AXA Advisors, Edward Jones, LPL Financial, Morgan Stanley, RBC Wealth Management, UBS and Wells Fargo have called on the CFP Board to wait for the SEC, “given the almost inevitability of inconsistencies between the revised proposal and the SEC’s forthcoming rulemaking,” the firms wrote, according to InvestmentNews.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.
  • To read the ThinkAdvisor article cited in this story, click here.