SEC chief forges ahead on financial adviser regs
Securities and Exchange Commission (SEC) Chair Mary Jo White will tell Congress Tuesday that she is moving forward with stringent new regulations for financial advisers, according to prepared testimony obtained by The Hill.
White is asking staff to prepare recommendations about how to implement the contentious rules, according to the remarks drafted ahead of a hearing before the House Financial Services Committee.
{mosads}White said in her testimony that she will discuss the regulations — known as the “fiduciary rule” — in the “very near term.”
“After significant study and consideration, I believe that broker-dealers and investment advisers should be subject to a uniform fiduciary standard of conduct when providing personalized securities advice to retail investors,” according to the testimony.
Officials at the White House and the Department of Labor (DOL) are also pushing to impose new regulations on financial advisers and broker-dealers. The business community opposes DOL’s effort, arguing that it would re-shape the industry and end up limiting financial advice services to low-income Americans.
“I will be discussing these concepts in depth with my fellow Commissioners in the very near term, and I have asked the staff to develop rulemaking recommendations for Commission consideration,” White said in her testimony.
The industry has also raised concerns that DOL’s fiduciary standards would not mesh with SEC’s fiduciary standards.
White said in her testimony that she is “committed to continuing these conversations with the Department of Labor, both to provide technical assistance and information with respect to the Commission’s regulatory approach and to discuss the practical effect on retail investors, and investor choice, of their potential amendments to the definition of fiduciary.”
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