Testing the waters for a uniform fiduciary standard of conduct for broker-dealers and investment advisers

• Published in: Insights (Clifton, N.J.) N.J.), 2013-04, Vol.27 (4), p.18
• Main Authors: Grafton, Susan K, Perlow, Mark D
• Format: Article
• Language: English
• Subjects: Bank investment divisions; Brokers; Business models; Consumer protection; Costs; Economic analysis; Fiduciary duties; Investment advisers; Investment advisors; Laws, regulations and rules; Regulation of financial institutions; Regulatory agencies; Stock brokers; Wall Street Reform & Consumer Protection Act 2010-US
• ISSN: 0894-3524

Although the Securities and Exchange Commission's recent release regarding a uniform standard of conduct for broker-dealers and investment advisers does not include proposed rules, it provides a window into what a possible rulemaking might look like. Moreover, the numerous requests for quantitative and qualitative data, costs and benefits, economic analysis, and other information signal preparation for potential challenges to future regulatory action. On Mar 1, 2013, the Securities and Exchange Commission (SEC or Commission) published a request for data and other information (Release) regarding the duties of brokers, dealers and investment advisers. The deadline for submitting comments and information to the SEC is Jul 5, 2013. Through the Dodd-Frank Act, Congress also authorized, but did not obligate, the SEC to adopt rules establishing a uniform fiduciary standard of conduct for all broker-dealers and investment advisers when providing personalized investment advice about securities to retail customers.