Two unresolved provisions of the Dodd-Frank bill are open to being shaped by whoever wins in November.
One of those provisions is Section 913, which would put broker-dealers under fiduciary duty when issuing investment advice to customers. However, the SEC has yet to even propose the rule.
David Tittsworth, the executive director of the Investment Adviser Association, said that it is unlikely the rule would be finalized by year end, assuming the SEC even proposes the rule. That leaves any such rule making subject to the results of the election.
The other provision is a bill that would establish a self-regulatory organization, or SRO, for advisors. The bill is sponsored by House Financial Services Committee Chair Spencer Bachus, R-Ala.
On the other side of the aisle, Rep. Maxine Waters, D-Calif., plans to introduce legislation that would allow the SEC to collect user fees to fund advisor exams.
Dan Barry, the managing director of government relations and public policy for the Financial Planning Association, said that while “a lot of work has been done” in the implementation of Dodd-Frank, “a lot of unfinished business” still remains. Barry also said that “boosting investor protection through SEC fiduciary rules for brokers giving advice should remain a priority item, as should beefing up the SEC’s oversight program for investment advisors,” AdvisorOne reports.
Tittsworth said that if Republicans succeed in the November elections, there is a possibility that the more controversial Dodd-Frank provisions could be revisited. However, a full repeal of the law is unlikely.