Trump call for DOL fiduciary rule review could open door to uniform standard

Brokerage business foes say they want a better rule; others call that a ruse
FEB 09, 2017
President Donald J. Trump's memo last week ordering the Labor Department to review the fiduciary rule has encouraged some in the brokerage business that an all-encompassing best-interest rule covering not just retirement assets could be crafted by the Securities and Exchange Commission. The Wall Street Journal reports that UBS Group AG, which has more than 7,000 brokers in the U.S., last week said it welcomed Mr. Trump's action and said it wants a “single fiduciary standard that preserves client choice with the SEC taking the lead regulatory role.” LPL Financial Holdings Inc., which serves more than 14,000 independent brokers, repeated its contention that a best-interest standard is appropriate for the industry and that a consistent approach to disclosures, compensation and mitigation of conflicts is the “right path forward.” The Securities Industry and Financial Markets Association, which filed a lawsuit against the fiduciary rule that was shot down earlier this week by a federal judge in Texas, said it supports a best-interest standard but believes the Labor Department isn't “the right agency” to craft it. But the article notes that the SEC, the agency most likely to design and champion such a rule, had been unable to craft one under President Barack Obama, “and prospects don't appear any better under a Trump administration.” Barbara Roper of the Consumer Federation of America and a long-time critic of Wall Street and its opposition to the rule, is quoted as saying that the SEC's record on crafting a fiduciary rule is abysmal. Firms touting their support for an SEC standard, she said, “is just their way of killing the fiduciary rule without looking like villains.”

Latest News

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

Why uncertainty is making behavioral coaching more valuable than ever
Why uncertainty is making behavioral coaching more valuable than ever

Markets have always been unpredictable. What has changed is the amount of information investors are trying to process and the growing role advisors play in helping clients avoid emotional decisions

Florida investor hits real estate syndicator with fraud suit over $750K
Florida investor hits real estate syndicator with fraud suit over $750K

Six apartment deals, one "big account," and $2.7M in undocumented insider loans. Now the lawsuit lands

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management