More work needed: SEC releases new best interest standard

Author: John Crabb | Published: 25 Apr 2018

Early reports suggest the industry is unsure about the Securities and Exchange Commission’s (SEC) latest proposals for new legislation on a standard of conduct for investment advisers, which come with a request for public comment in the next 90 days.

The proposals have been long expected, released amid growing uncertainty that the Department of Labor’s (DoL) fiduciary standard rule, which applies only to retirement brokers, will be stricken from the records on the May 8.

Despite being readily anticipated, early responses have reportedly not been positive overall. The SEC commissioners themselves voted by a margin of 4-1 to release the proposals, with Democrat Kara Stein - the dissenting vote - suggesting that the suggestions did not go far enough or provide comprehensive enough coverage or protection.

"The SEC's votes demonstrate a willingness to move forward with a package of three important proposals - but the meeting also underscored that these...