SEC Now Says Fiduciary Duty Rule Target Date Later this Year

The Securities and Exchange Commission (SEC) has announced that the target date of April – June, 2011 for the universal fiduciary duty rule is going to have to moved to sometime later in the year. The fiduciary study, mandated by the Dodd-Frank financial regulatory reform law, was delivered to Congress in January. The report called for the SEC to extend the fiduciary duty requirement to broker dealers to protect investors, who it says are confused by differing standards that investment advisers and brokers must meet.

Resistance came from two Republican SEC commissioners, Kathleen Casey and Troy Paredes, who argued the conclusion of the study was not backed up by vigorous economic analysis. Although there was a Dodd-Frank timeline on the SEC to promulgate a fiduciary duty regulation between April and June, it is now projected that SEC action will “likely occur later in the year.”

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