Piwowar departure casts shadow over SEC best-interest standard

Author: John Crabb | Published: 9 May 2018

Securities and Exchange Commission (SEC) commissioner Michael Piwowar announced his intention to stand down from his role yesterday, throwing doubt over the future of the best-interest standard rule proposed by the agency last month.

In an open letter to President Trump, Piwowar outlined his intention to resign from the post on July 7 or when a successor is sworn in, whichever is sooner. The move could make a big difference as to how chairman Jay Clayton is able to move forward with the set of proposals made in April that suggested new standards of conduct for broker-dealers, offer new guidance on fiduciary duty for registered investment advisors (RIAs), and introduce requirements for supplementary disclosure of conflicts of interest. 

Piwowar's departure has come as something of...