AM Best TV

Market Leaders Push Back on Fed's Fiduciary Rule

SEC should be taking the lead

OLDWICK, N.J., November 20, 2015—This A.M.BestTV episode looks at the Securities Industry and Financial Markets Association’s (SIFMA) recent annual meeting in Washington, D.C., where its leaders discussed cyber security regulation, market structure and the proposed rule changing the definition of fiduciary. Click here to view the entire program.

SIFMA is an industry trade group that represents hundreds of security firms, banks and asset managers. At this year’s meeting, its leaders pushed back on the U.S. Department of Labor proposal (regarding the fiduciary rule or the conflict of
interest rule), which expands the scope of those who become fiduciaries.

“SIFMA believes that the U.S. Securities and Exchange Commission, which is the expert regulator of securities, should be taking the lead on this issue,” said Ira Hammerman, general counsel, SIFMA.

William Johnstone, outgoing board of directors’ chairman, SIFMA, addressed the issue of cost. “Whether a person is investing in the securities market or the insurance market, the SIFMA believes that this proposed conflict of interest rule, as it is currently structured, is very costly for the average investor,” said Johnstone.

No exact date for release of the rule’s final version has been announced.

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