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SEC plans to propose fiduciary rule next April

May 20, 2016

Another item of interest to financial advisers, third-party exams, is also on the docket for next spring

May 19, 2016 @ 1:46 pm | By Mark Schoeff Jr. | Investment News

The Securities and Exchange Commission plans to propose rules for raising investment advice standards and authorizing non-governmental examinations of advisers next spring, according to its latest regulatory agenda.

The agency does not have to adhere to the timetable, which was posted on the Office of Management and Budget website Wednesday, and routinely misses its self-imposed deadlines. In fact, some observers expected the exam rule to come out this fall. But the agenda does provide insight into the regulator’s priorities.

The SEC is projecting that it will propose in April a rule that requires both investment advisers and brokers to meet a fiduciary standard for advice to retail customers. Advisers already must act in their clients’ best interests, or engage in a fiduciary relationship, while brokers adhere to a less stringent suitability standard.

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John E. Moriarty, ChFC
December 2015
February 3, 2016

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