More Delays for the Fiduciary Standard of Care
Nearly a year ago, in January 2011, the U.S. Securities and Exchange Commission (SEC) sent a recommendation to Congress proposing a universal fiduciary standard of care for investment advisors and broker dealers, to alleviate the confusion for investors as to the differing standards applicable to both. The SEC has pushed to get the new universal standard of care for all who provide retail investment advice through this fall. However, it appears that this will not happen until next year, according to Investment News.
The Department of Labor announced that it is back to square one on the fiduciary standard rule. Mary Schapiro, SEC Chairman, has indicated that it is not in a position yet to promulgate a new universal standard of care, as authorized by Dodd-Frank. An unnamed party has stated that “the time frame certainly has slipped “ and “it’s extremely unlikely that there will be a rule this year.”
It seems that one of the primary factors holding back the proposal is an assessment of the cost benefits of the rule.