Speaking at a PLI-sponsored "SEC Speaks" meeting in Washington Feb. 21, SEC Chair Mary Jo White stated that she will intensify the consideration of the rule and push commissioners to make a decision, according to Investment News. Recently, White said that the rule was a back burner issue at the SEC.
White also indicated at the PLI event that while the pending uniform fiduciary rule is a "primary, immediate focus" of her agency, there is no decision yet on whether to proceed. The SEC is currently conducting a cost/benefit analysis of a possible fiduciary standard.
Last October, the U.S. House of Representatives passed a bill sponsored by Rep. Ann Wagner (R-MO) that would require the SEC and DOL to harmonize their separate efforts to craft a fiduciary standard, but the Senate is unlikely to take up that bill. Brian Graff, executive director/CEO of NAPA and ASPPA, raised concerns last year that the end result of two agencies’ separate efforts could be a "not-so-uniform uniform standard."
Questioned at the Feb 21 PLI event, SEC Commissioner Daniel Gallagher indicated that he has not made a decision, commenting that he doesn't know what the rule is because nothing has been put before him. Commissioner Kara Stein was also unsure about how she would vote, while Commissioner Luis Aguilar said he supported it. Last month, Michael Piwowar, the SEC’s newest commissioner, expressed concerns that the agency’s rulemaking on the uniform fiduciary rule could cause confusion. Piwowar advocated instead for more disclosure and investor education.
Three of the five commissioners would have to approve the rule for it to move forward to the public comment stage.
“NAPA has met with each of the commissioners individually, and with SEC staff, to express the concerns of NAPA’s Government Affairs Committee regarding the likely confusion among plan sponsors that would result from a ‘non-uniform uniform fiduciary standard,’” Graff told NAPA Net.
