to text of the Retail Investor Protection Act, “the Secretary of Labor shall
not prescribe any regulation under the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1001 et seq.) defining the circumstances under which an
individual is considered a fiduciary until the date that is 60 days after the
Securities and Exchange Commission issues a final rule relating to standards of
conduct for brokers and dealers pursuant to the second subsection (k) of Section
15 of the Securities Exchange Act of 1934."
bill goes on to say the Securities and Exchange Commission (SEC) cannot issue
its final rule until it determines whether retail investors are being harmed by
different standards for broker/dealers and advisers and whether adopting a
uniform fiduciary standard of care for broker/dealers and advisers would
adversely impact retail investors’ access to personalized investment advice.
a recent speaking engagement, Assistant Secretary of Labor Phyllis Borzi of the
DOL’s Employee Benefits Security Administration (EBSA) said the agency is “very
close to finishing” a new definition of fiduciary (see “Shutdown Put Delay on Some Regulations”). She assured the audience the EBSA is
working closely with the SEC on the regulations.
Text of House bill
H.R. 2374 is here.