The SEC and DOL recently signed a Memorandum of Understanding (MOU) designed to share information and coordinate efforts on matters of mutual interest. The MOU requires:
• Regular meetings of DOL and SEC officials
• Cross-training initiatives
• Mutual access to non-public information
The obvious area that the MOU could cover is the fiduciary issue. The DOL’s proposed rule redefining fiduciaries working on qualified plans and IRAs is expected out later this year, with the SEC possibly moving forward on a uniform fiduciary rule under Dodd-Frank as well. Obviously, having different fiduciary rules promulgated by two agencies would cause confusion in the market.
According to Brian Graff, CEO/Executive Director of NAPA and ASPPA, the MOU “means that the DOl and SEC have formally committed to working together more, which also means that it’s imbedded in the regulatory process. In other words, if either one works on something connected to the other agency's jurisdiction, they are now required to consult with one another. The MOU has significant implications for all future regulations relevant to 401(k) advisors.”
