With the possibility of two fiduciary standards for financial advisors looming — one by the DOL, whose rule is pending and was originally expected to come out in July, and another by the SEC, which has issued an RFI — Congress may step in and require the two agencies to coordinate their efforts. The so-called “message” bill (as opposed to a “policy” bill) is still being drafted, but it is slated be the focus of a House hearing next week.
If it’s enacted, the practical effect of the bill would be to slow down the DOL’s effort, likely pushing their fiduciary rule into the fall. Certainly, having two fiduciary standards that could potentially overlap could cause confusion in the market and muddy enforcement actions.
