Fi360

Fiduciary Links: Comments Shed Light on Future SEC Action

Posted by fi360 Team on November 25, 2013

>>>The SEC's Investor Advisory Committee released two recommendations last week. Most notably, they urged the SEC to go forward with fiduciary rulemaking so that anyone offering personalized investment advice would be subject to a fiduciary duty, including broker-dealers. They agreed with other arguments in support of this action that the services provided by investment advisers and broker-dealers have become increasingly similar and most investors can't recognize the differences between the two types of service providers.

Separately, the committee also came out in support of self-funding for the SEC, where advisers would pay a fee to fund the SEC examination program. They noted that this type of legislation has been introduced into Congress by Rep. Maxine Waters.

In InvestmentNews's coverage of the recommendations, SEC Chair Mary Jo White indicated the SEC would consider those recommendations.

>>>Staying on the regulatory front, White also submitted a letter to House representatives regarding the definition of an "accredited investor" under Reg D. She indicated that the SEC would consider factors beyond the wealth of the investor, such as their sophistication. This might make it possible for financially-trained individuals to invest in private, non-regulated offerings, or even for investors working with an advisor to take part. Some advisors see too much risk in providing that kind of service.

You can read White's full comments here.

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