U.S. DOL fiduciary rule at OMB

first_img Related news Industry applauds, investors lament new “best interest” standards The proposed rule aims to reduce conflicts of interest in the investment industry by extending the regulatory definition of fiduciary so that it applies to brokers and investment advisers that provide retirement advice. The proposal, which has been in the works since the financial crisis, went through a session of public hearings last fall. It has faced staunch opposition from the investment industry. And, at the same time, the U.S. Securities and Exchange Commission (SEC) is also working on its own proposal to develop a common fiduciary standard that would apply to both broker dealers and investment advisers. The U.S. Securities Industry and Financial Markets Association (SIFMA) of Friday issued a statement, calling on the OMB to thoroughly review the rule, and all of its implications, before proceeding. “The proposed rule could have serious consequences for retirement savers including limiting choice and access to advice, while raising the cost of saving,” says SIFMA president and CEO, Kenneth Bentsen, Jr., in a statement. “Given the consequential impact the proposed rule would have on investors and the additional costs involved, as many independent analysts have reported, we strongly urge the OMB to conduct a comprehensive cost-benefit review of the final proposed rule.” In Canada, consumer and investor advocacy groups have long called for a version of fiduciary duty for advisors, which the industry has generally opposed. The Canadian Securities Administrators (CSA) is expected to make a policy decision in this area in the first half of 2016. See: Regulation: Reality bites James Langton Fiduciary duty breach caught by whistleblower Keywords Fiduciary duty center_img A proposal to introduce fiduciary duties for retirement advice in the United States is moving ahead, as the U.S. Department of Labor (DOL) has sent its proposed rule on the subject to the White House’s Office of Management and Budget (OMB) for review. The OMB indicated receipt of the DOL proposal on its website on Friday. The OMB has up to 90 days to review the rule. Massachusetts adopts fiduciary standard Share this article and your comments with peers on social media Facebook LinkedIn Twitterlast_img

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