|Dave Michaels and Robert Schmidt|
(Bloomberg) — There’s a gap between the
The White House’s move leaves
Under current rules, brokers must make “suitable” recommendations to clients, meaning the investments have to fit the customer’s needs and tolerance for risk.
All eyes are now on White, who said in November that she planned to disclose her position in the coming months. She is considering delivering a speech on the issue in the coming weeks, according to two people familiar with the matter.
White has been studying options for new rules since late last year, when the agency’s staff presented her with alternatives, including rules that would hold brokers and investment advisers to the same fiduciary standard, the people said. That option was endorsed by
The staff also suggested a watered-down measure, such as requiring brokers to disclose conflicts of interest on a form filed with the
In an interview last week, White said the
White also said she doesn’t feel any political pressure to speed up progress on new rules. “We’re very focused on our own decision whether to proceed,” she said.
Almost as soon as Perez announced the proposal last month,
In one letter sent around by an industry group last week, Senator
“We strongly believe the DOL rule will significantly harm low and middle-income investors seeking financial advice regarding their retirement and will cause unintended consequences,” the two lawmakers wrote.
In the House, Representative
Along with congressional pressure, White is also dealing with differing opinions among her fellow commissioners.
The SEC’s two Republicans,
“The fiduciary duty debate lies squarely in the realm of issues contrived by and urged upon the
On the Democratic side, Commissioner
For now, the
Some consumer advocates who have talked to White say they see signs that the
“Even with a very full agenda of issues, she’s been giving attention to it, and that’s a good thing,” said
|Copyright:||(c) 2015 Financial Planning. All rights Reserved.|
|Source:||Source Media, Inc.|