The United States Court of Appeals for the Fifth Circuit
decision last week to vacate the Department of
Labor’s (DoL) fiduciary standard rule will give
the Security and Exchange Commission (SEC) unfettered freedom
to craft its own version of the rule that applies to the entire
Presiding judges on the court ruled by a two-to-one majority
to cast aside the rule, based largely on arguments put forward
by the US Chamber of Commerce and the Securities Industries and
Financial Markets Association (Sifma).
The fiduciary standards rule loosely demands that retirement
advisors act in the best interests of their clients and put
their interests above their own.
SEC chairman Jay Clayton this week confirmed that the
commission continues to be in the process of drafting its own
version of the rule, but suggested at Sifma’s
C&L Annual Seminar that the court decision would have
little effect on how it looks....