The Securities and Exchange Commission will discuss its long-awaited rule on the standards of conduct for broker-dealers and registered investment advisers at a public meeting held next week in Washington D.C.
The SEC will consider establishing a standard of conduct for brokers that recommend any securities transaction or investment strategy involving securities to a retail customer. Additionally, they will discuss implementing new rules that require RIAs and broker-dealers to provide a brief relationship summary to retail investors, as well as an “interpretation of the standard of conduct for investment advisers.”
Chairman Jay Clayton informed lawmakers late last year that the agency was drafting its own fiduciary rule proposal and pledged to work with the Department of Labor on its fiduciary rulemaking efforts.
The DOL fiduciary rule, which is currently under review as directed by President Trump, redefines who is considered an investment advice fiduciary under the Employee Retirement Income Security Act of 1974. Enforcement of the rule was previously delayed for 18-months until July 1, 2019.
Last month, the Fifth Circuit Court of Appeals ruled that the DOL “lacked statutory authority to promulgate the rule with its overreaching definition of ‘investment advice fiduciary.’” Days after the Fifth Circuit ruling to vacate the rule, Clayton reiterated that the Commission was undeterred and still moving forward.
The SEC meeting will be held on Wednesday April 18th at the SEC’s Washington, D.C. headquarters in Auditorium LL-002. The meeting will begin at 3:30 p.m. EST and will be open to the public. For those unable to attend, a webcast will be available on the SEC website.