Contact Us

SEC Moving Forward on Fiduciary Rule Despite DOL

Chairman Jay Clayton says ‘the sooner the better’ when asked when an SEC fiduciary rule will be ready

Investment News, Mark Schoeff, reported on 3.19.2018 that the Securities and Exchange Commission Chairman Jay Clayton, said Monday, that the agency is moving forward on a fiduciary rule and its work would not be affected by a court decision last week that struck down a similar Labor Department regulation.

On Thursday, the 5th Circuit Court of Appeals vacated the DOL fiduciary rule, which requires brokers to act in the best interests of their clients in retirement accounts. The regulation was partially implemented last year but the remaining provisions are being reviewed under a directive from President Donald J. Trump that could lead to major changes.

At the Securities Industry and Financial Markets compliance and legal seminar in Orlando, Fla. on Monday, Mr. Clayton said that the SEC is forging ahead despite the doubt now surrounding the DOL rule’s fate. The SEC rule is expected as early as this summer.

At the Securities Industry and Financial Markets compliance and legal seminar in Orlando, Fla. on Monday, Mr. Clayton said that the SEC is forging ahead despite the doubt now surrounding the DOL rule’s fate. The SEC rule is expected as early as this summer.

“Seventy-two hours later [after the court ruling was handed down], it hasn’t affected the way I’m approaching this,” Mr. Clayton said. “I haven’t had any discussions with DOL about what it means from a broader perspective of administrative law. But, as far as I’m concerned, we’re moving forward.” In terms of a timetable for a proposal, Mr. Clayton added, “From my perspective, the sooner the better.”
DOL appeal uncertain

A Trump administration official said it’s unclear whether the DOL will appeal the 5th Circuit ruling to the Supreme Court.

“I don’t have any insight into that at this time,” Craig Phillips, Treasury Department counselor, said on a SIFMA conference panel later in the morning. The court ruling “gives us an opportunity to look at this space freshly,” Mr. Phillips added. He noted that the fact that the DOL rule is partially in effect “creates a dilemma for the industry. Thoughtfully moving forward is key, and we have great confidence in Chairman Clayton to do so.” Read More>>

Posted in: Independent Broker Dealer News

Leave a Comment (0) ↓