Fiduciary Links: What can we read into the SEC's assumptions regarding fiduciary rule making?
Posted by fi360 Team on April 29, 2013
>>>>The Institute for the Fiduciary Standard, an advocacy group that promotes the fiduciary standard, issued a paper that takes issue with a number of the assumptions made in the SEC’s request for data to inform potential fiduciary rulemaking. The paper notes that the assumptions suggested in the request would indicate a severe change in how the fiduciary standard is understood. This would include increased reliance on disclosures as a means of managing conflicts of interest while also weakening the forms and methods of disclosure, allowing fiduciary duty to be waived, redefines the duty of loyalty, and glosses over the seriousness of conflicts issues. In short, the Institute’s position is that the assumptions, if they came to pass, would be a dramatic departure from the Advisers Act and clearly in opposition to the Dodd-Frank mandate that the uniform standard be “no less stringent” than the existing Advisers Act standard.
The SEC release for the request does note that the assumptions for the request should not be presumed to be an indicator of what rulemaking will look like. Nonetheless, it is illustrative enough that these assumptions have not been thrown out by the SEC.
As always, InvestmentNews has coverage.
>>>A story making headlines in the consumer media this week was PBS Frontline’s special “Can you afford to retire?” Which looked at Americans’ reliance on 401(k) plans and the risks of inadequate retirement savings. While some praised the show for highlighting the problems of suspect sales practices and high fees, others felt it portrayed the entire advice industry with a large (negative) brush. InvestmentNews has a recap of the reaction.
Now on to the rest of the best links from last week:
News and columns from the leading trade, consumer, and mainstream media:
- RIAs are bringing in new money, according to a recently released study. [InvestmentNews]
- Software options can make claiming social security a little easier. [InvestmentNews]
- Senate Internet tax bill could open door to state levies, hitting advisers [InvestmentNews]
- To attract high-net-worth clients, offer more than financial planning [InvestmentNews]
From the organizations/associations/government/academia:
- Susan Axelrod named FINRA's Executive Vice President of Regulator Operations [FINRA]
- SEC names Anne K. Small as General Counsel [SEC]
- CEFEX delivers first independent fee disclosure assessment [CEFEX]
From the blogs:
- Dale Brown tells RIAx why SEC's fiduciary standard is too costly for their clients. [riabiz]
- Trending topics for ERISA plan sponsors [FiduciaryNews]
- Thoughts on the GAO report on IRA Rollovers [fredreish]
Articles your clients are reading (or should be):
- Three big problems with your retirement savings, and what you can do about them. [thefamilyCEOblog]
- Beware of financial fraud. [USNews]
- Your old 401(k), should you take it or leave it? [thechicagofinancialplanner]
- Four financial tips for the sandwich generation, care for your children and your parents without sacrificing your retirment savings. [USNews]
Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.
