Coming in 2011: SEC fiduciary standard

Feb 06, 2012

Aug 31, 2011

“The SEC will probably undertake rule-making for the fiduciary standard later this year,” reported John Taft, chairman of the Securities Industry and Financial Markets Association.

The SEC's current budget and resource constraints are delaying several issues, including the development of a uniform fiduciary standard regulation for broker-dealers and the mutual fund fees.

Republican members of the House Financial Services Committee oppose the development of a fiduciary standard. Citing a recent SEC study, the committee members didn’t find sufficient data to change existing rules in the SEC’s standard-of-care issues.

The SEC completed the study as part of its requirements under the “Dodd-Frank Wall Street Reform and Consumer Protection Act.” The House committee has targeted several areas of the Dodd-Frank Act.