InvestmentNews reported that SEC Commission Hester Pierce stated at a recent conference, “When you lay it side-to-side against the fiduciary standard, I think one could argue that it’s a stronger standard because it does require mitigation or elimination of conflicts in a way the fiduciary standard does not.” This is in reference to certain provisions within proposed Regulation Best Interest that disallow disclosure as a proper method for addressing certain conflicts of interest. We will wait to see if the final Reg BI will better define the type of conflicts that cannot be disclosed away.
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.