The Securities and Exchange Commission plans to issue a “personalized investment advice standard of conduct” in the spring of 2017, according to the agency’s latest regulatory plan.
The SEC’s Division of Trading and Markets and Division of Investment Management are considering jointly proposing a new rule for a uniform fiduciary standard of conduct for broker-dealers and investment advisers when they provide personalized investment advice about securities to retail customers. According to the regulatory plan posted on May 18, the SEC plans to issue a notice of proposed rulemaking (NPRM) on the standard of conduct next April.
This is not the first “reveal” of the SEC’s interest in promulgating an investment advice standard of conduct. Most recently, SEC Chair Mary Jo White announced on Feb. 19 at the Practising Law Institute conference in Washington, D.C. that the SEC would proceed with its work on investment advice standards rules and oversight of advisors.
The SEC’s regulatory plan lists more than 30 projects in the proposed rule stage, including three long-standing projects that would affect advisors directly or indirectly:
It’s important to note that the guidance issuance dates listed on federal agencies’ regulatory plans are viewed as operational target dates, not hard-and-fast deadlines.
The SEC’s Division of Trading and Markets and Division of Investment Management are considering jointly proposing a new rule for a uniform fiduciary standard of conduct for broker-dealers and investment advisers when they provide personalized investment advice about securities to retail customers. According to the regulatory plan posted on May 18, the SEC plans to issue a notice of proposed rulemaking (NPRM) on the standard of conduct next April.
This is not the first “reveal” of the SEC’s interest in promulgating an investment advice standard of conduct. Most recently, SEC Chair Mary Jo White announced on Feb. 19 at the Practising Law Institute conference in Washington, D.C. that the SEC would proceed with its work on investment advice standards rules and oversight of advisors.
The SEC’s regulatory plan lists more than 30 projects in the proposed rule stage, including three long-standing projects that would affect advisors directly or indirectly:
- investment firm advertising and TDF marketing (April 2017);
- transition plans for advisors (undetermined); and
- incentive compensation (undetermined).
It’s important to note that the guidance issuance dates listed on federal agencies’ regulatory plans are viewed as operational target dates, not hard-and-fast deadlines.
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