April 19, 2018

Jim Lundy Comments on the SEC’s Proposed Regulations Regarding Fiduciary Issues

Chicago partner Jim Lundy commented in an Ignites article entitled “SEC Unveils Long-Awaited Response to DOL Fiduciary Rule.”

With the Department of Labor’s fiduciary rule now in limbo due to a federal appellate court’s decision to vacate it, the SEC has come forward with a proposed three-prong regulatory effort. The proposals include: “Regulation Best Interest,” which will apply to broker-dealers serving retail customers; enhanced guidance for investment advisers serving retail clients; and Form CRS which will require investment advisers and brokers to provide certain disclosures.

Given that the SEC’s timing appears to have been accelerated due to said federal appellate court’s decision to vacate, Jim notes that “[t]he three aspects of the proposed rule are commendable for what they’re trying to achieve.” He also observed that “[t]he enhanced suitability standard is going to have some aspects that will make for a heightened standard for broker-dealers working with retail customers, and there will be costs to that, but we’re not starting from scratch.”

Read “SEC Unveils Long-Awaited Response to DOL Fiduciary Rule.” (log-in required)


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