Looks like another entity may be weighing in on the redefinition of fiduciary issue. FINRA’s CEO Richard Ketchum stated at the group’s annual meeting this week that the SEC should act quickly to create a uniform fiduciary rule and that, in the absence of progress, his group would look to set additional disclosure rules for FINRA firms.
The SEC has issued an RFI on uniform fiduciary rules under power granted by Dodd-Frank. [NAPA’s Government Affairs Committee will be responding to the SEC’s RFI on the uniform fiduciary standard.] Of course, the DOL is expected to submit its proposed redefinition of fiduciary soon — although the definition of “soon” varies from next month to next fall.
This is not that first time that Ketchum seemed to indicate that his group is ready to step in if the SEC does not act. In a previous speech, he stated that SEC advisers are not being examined as rigorously as registered reps, implying that his group was ready to help.
And as for the SEC, Commission Chair Mary Jo White recently asked Congress for more funds to beef up examinations of advisors.
