On April 19, 2018, the SEC approved by a vote of 4-1 (Commissioner Stein voted no) to advance two proposed rules and an interpretation to address the ”fiduciary” rule/best interest standardard. They include the following: Regulation Best Interest Rule Form CRS Relationship Summary Rule Investment Adviser Interpretation The proposed Regulation Best Interest Rule requires broker-dealers to comply…
Category: Fiduciary Duty
The DOL’s rule applies a fiduciary duty to those providing investment advice to retirement investors. BDA advocated in comment letters and in testimony, for common sense changes to the rule and for the DOL and the SEC to coordinate their efforts. The SEC has stated it intends to publish a proposed rule applicable to the standards of care provided by broker-dealers and investment advisers at a later date.
DOL Fiduciary Rule Struck Down By Court
On March 16, 2018, in a split decision, the Fifth Circuit Court of Appeals struck down the DOL’s fiduciary rule. The Court held that the DOL exceeded its statutory authority under the Employee Retirement Income Security Act (ERISA). The judges took aim at one of the rule’s key provisions: the best interest contract exemption, which…
SEC Accelerates Work on a ‘Fiduciary’ Standard
The Securities and Exchange Commission is accelerating work on its own version of the “fiduciary rule,” a regulation issued by the Labor Department that put restraints on brokers handling retirement accounts. The SEC hopes to vote to propose its own rule by the second quarter of 2018. That would be a first step toward creating…
BDA Comment Letter to the DOL: Supporting an Extended Transition Period
The DOL published a proposed rule to extend the transition period for the Department of Labor Fiduciary Duty Rule. The proposal would delay the applicability dates for the Best Interest Contract Exemption and the Principal Trading Exemption until July 1, 2019. BDA Comment Letter BDA submitted a comment letter on Friday, September 15th. The letter can be…
BDA Submitted Comment Letter: DOL Fiduciary Rule
On August 7, 2017, in response to a Request for Information published by the Department of Labor, the BDA submitted a comment letter to the DOL focused on how it should amend the Fiduciary Duty Rule and the Principal Trading and Best Interest Contract Exemption. BDA Comment Letter Summary — Primary Areas of Focus The Department of Labor and the…
BDA Submitted Comment Letter: DOL Exemption Applicability Date Delay
On July 21st, the BDA submitted a comment letter to the Department of Labor focused on whether the Department of Labor should delay the January 1, 2018 Best Interest Contract Exemption and Principal Trading Exemption applicability date. The letter is here. BDA’s letter expresses strong support for delaying the applicability date of the exemptions until the Department of…
BDA Submits Fiduciary Duty Comment Letter: Comments on the Presidential Memo
BDA Comment Letter on the Presidential Memo on the Fiduciary Duty Rule Today, the BDA submitted a comment letter that is focused on the questions raised by President Trump’s February 3rd memorandum. Comment Letter Summary In response to the issues raised in the Presidential Memo, the BDA’s comment letter states that the rule will unnecessarily restrict access to fixed-income…
BDA Submits Comment Letter: Amendments to MSRB G-34 on CUSIPs
BDA submitted a comment letter, available here, in response to MSRB’s request for comment on draft amendments and clarifications to Rule G-34 on obtaining CUSIP numbers. The draft letter focuses on the following: The Draft Amendments will not permit issuers to issue and investors to purchase privately placed municipal securities without CUSIP numbers even though there are good…
BDA Comment Letter to DOL on Proposed 60-Day Delay to Applicability Date of the Fiduciary Duty Rule
The Department of Labor proposed a 60-day delay to the applicability date of the fiduciary duty rule. Comments on the 60-day delay were due by Friday, March 17th. The BDA comment letter is here. BDA Comment Letter Summary BDA expresses support for the 60-day delay and recommends a longer, 180-day delay BDA notes that the Labor Department’s economic cost-benefit…
BDA Testifies Before U.S. Department of Labor on Fiduciary Duty
In his remarks, Nicholas focused on how the proposed expansion would significantly limit the ability of dealers to provide investment advice and recommendations to retirement investors. You can find his prepared remarks here. Specifically, Nicholas spoke about how the BDA does not believe the proposed rule or the associated exemptions represent the right approach for improving…