In its recently released 2012 financial report, the SEC indicated that, among other things, it will look to harmonize fiduciary standards for investment advisors and broker dealers that provide the same services. According to the report, “Looking Forward,” the SEC indicated it will “[m]ove forward with recommendations from a staff report to consider a uniform fiduciary standard of conduct for investment advisers and broker-dealers when providing personalized investment advice to retail investors about securities. In addition, the Commission will continue assessing ways to better harmonize the regulatory requirements of investment advisers and broker-dealers when they are providing the same or substantially similar services to retail investors.”
The SEC also plans to hire more examiners — funds permitting — and to continue with other rulemaking under Dodd Frank.
With the DOL likely to pursue its own agenda — defining fiduciary activity and addressing the role of an advisor when working with participants, especially regarding rollovers — will the rules covering advisors working with DC plans and retail investors be compatible? There’s no doubt that the lines have become blurred between advisors and broker dealers, especially in the minds of investors. But will the SEC and DOL make them clearer?
