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SEC to Discuss Fiduciary Rule Proposal Next Week

By Alex Padalka April 12, 2018

The SEC will discuss it own version of a fiduciary standard on Wednesday, according to a meeting agenda published on the regulator’s website.

Two of the three matters under review at the meeting, which will be open to the public, directly refer to a “standard of conduct,” according to the agenda. They include whether to propose amended or new rules requiring registered broker-dealers and RIAs “to provide a brief relationship summary to retail investors,” whether to propose a rule establishing a standard of conduct for broker-dealers and associated persons when making investment recommendations to retail customers, and whether to propose an SEC interpretation of the standard of conduct governing investment advisors, the regulator says.

SEC’s review of how it regulators broker conduct comes about a month after an appeals court has vacated the Department of Labor’s fiduciary rule. The DOL’s rule only applies to retirement account advisors, and the agency has already said that it will not be enforcing even the parts of the rule already in place since the partial implementation of the rule last summer.

SEC Commissioner Jay Clayton has said that he supports bringing “clarity and harmony to the investment advisor, broker-dealer standard of conduct regulation.” The SEC was reportedly planning to vote on its version of the fiduciary rule by the second quarter.