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SEC Board Back To Full Strength
The Securities and Exchange Commission’s board has be operating at less than full capacity. But earlier this week, President Donald Trump filled the last seat with the appointment of veteran securities law practitioner Allison Herren Lee to fill the open Democratic seat left by Kara M. Stein’s departure in January.
Lee has worked with the SEC in various roles for nearly two decades. Her previous roles include serving as senior counsel in the Complex Financial Instruments Unit and as counsel to Commissioner Stein.
If confirmed, Lee would begin her five-year term helping the SEC decide the fate of the proposed Regulation Best Interest rule. Lee’s term would expire on June 5, 2022.
Maryland Drops Fiduciary Rule
Growing tired of waiting for a federal fiduciary standard, several states including New York and Nevada have enacted or proposed state best-interest standards.
In February, Maryland joined the growing number of states with a fiduciary standard similar to the one proposed in Nevada. State Sen. Jim Rosapepe introduced the Financial Consumer Protection Act of 2019 to strengthen consumer protections in financial transactions. The proposed bill would have established that broker/dealers, investment advisors and insurance producers act in their client’s best interest regardless of compensation model or firm.
This week, the bill was struck down by the Maryland Senate Finance Committee following two March hearings and an “unfavorable” report from the Finance Committee. The bill was considered unfavorable after a 10-1 vote against the legislation.
No explanation on why it was struck down was given, but state lawmakers are due to adjourn on April 8, which could explain why the bill was abandoned.
AdvisorNews Managing Editor Cassie Miller may be reached at cassie.miller@Adnewsfeedback.com. Cassie has an extensive background in magazine writing, editing and design. Follow her on Twitter @ANCassieM.