Former SEC chiefs press current regime to move on fiduciary

Former SEC chiefs press current regime to move on fiduciary
Pitt, Cox and Schapiro agree that putting client interests first should be a priority.
DEC 07, 2015
Three former Securities and Exchange Commission chairmen called last week for the agency to develop a fiduciary rule. Speaking at the TD Ameritrade advocacy leadership summit in Washington, the former top SEC officials said the guiding principle should be putting clients' interests first. “It doesn't matter what you are called; it matters what you do,” said Harvey Pitt, who led the agency from 2001 to 2003. “If people are giving advice, they should be held to the same standards. What we really need is just an overarching standard. The problem when it's detailed is that lawyers and others try to craft around it,” Mr. Pitt said. (More: Hillary Clinton gives thumbs up to DOL fiduciary rule) The officials noted that while the Labor Department is developing its own updated fiduciary standard, a similar SEC effort first discussed in 2008 “is harder than perhaps it ought to be,” said Christopher Cox, whose tenure ran from 2005 to 2009. “There are enormous interests at stake here.” Mary Schapiro, who served as chairwoman from 2009 to 2013, said she does not blame the DOL for moving forward. During her tenure, SEC officials had “hundreds of meetings,” thousands of comment letters and a task force working on a proposed rule, all of which resulted only in a study. “I feel very strongly that the SEC needs to be more forward on this,” Ms. Schapiro said. Current SEC Chairwoman Mary Jo White is advocating for a principles-based standard, the former chairmen noted. Hazel Bradford is a reporter at sister publication Pensions & Investments.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.