House Finance Committee Plans Hearings on Fiduciary Duty
Republican members of the House Financial Services Committee’s Capital Markets Subcommittee have asked the U.S. Securities and Exchange Commission to postpone any rulemaking that would impose a uniform standard of care on brokers and investment advisors until the “broader practical impact that such changes might have throughout the entire financial marketplace” are assessed.
In a March 17 letter to SEC Chairman Mary Schapiro, Committee members shared concerns raised by some SEC commissioners about the study’s shortcomings. In addition, the Subcommittee is concerned about potential conflicts with a rule being pursued by the Department of Labor that would expand the definition of “fiduciary” for financial professionals who manage employee benefit plans under the Employee Retirement Income Security Act (ERISA).
In response to repeated requests by NAILBA and its industry partners, the Capital Markets Subcommittee, led by Chairman Scott Garrett (R-NJ), intends to schedule hearings in the coming weeks to learn more about the impact a uniform standard of care would have on consumers and the financial services industry.
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