Best Interest

How the states are trying to revive the DOL fiduciary rule

Wealth Management Magazine just ran a story on how the states are attempting to revive the DOL Fiduciary Rule in their own image. As part of my interview, I say: “To me, there’s no question that the Department of Labor fiduciary rule is a bit of the ideal paradigm in terms of governance (for these states).” This is true, but the DOL rule appears to also be a litmus test for some of the states in evaluating Regulation Best Interest (Reg BI) and their own rules. As some states try to channel the DOL Fiduciary Rule, Jay Clayton and Alex Acosta are, by all, accounts, coordinating on a June unveiling of the SEC Standards of Conduct package with a  proposed DOL exemption and some guidance (i.e., not a new rule on when one becomes an investment advice fiduciary under section 3(21) of ERISA) to follow.

Another Reprise: Look for DOL guidance late summer/fall that complements a final SEC standards of conduct rulemaking package, particularly Reg BI

Reprise: Is a final Reg BI “imminent”?

Report: Reg BI likely coming out this month

Is Reg BI stronger than an adviser’s fiduciary duties?

SEC Commissioner
Hester M. Peirce

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 to Compliance Reporter: Reg BI is a world unto itself and unlikely to be changed due to NV and NJ fiduciary proposals

Stradley Ronon’s Fiduciary Governance Group cited for identifying state-wide trends on fiduciary legislation

The Fiduciary Governance Group’s tracking and analysis of the various state fiduciary developments was referenced in a recent planadviser article on New Jersey’s new proposal.

OMB comes back into focus with Reg BI

Jackson thinks a strong enough Reg BI might allay the states

Bill Mandia and George Michael Gerstein discuss the race for fiduciary regulation at the federal and state levels