SEC's Piwowar Questions Need for Expanded Fiduciary Standard

Securities and Exchange Commission member Michael Piwowar told Mark Scoeff Jr. of the Investment News that he has doubts about whether a regulation to require registered representatives to operate under a fiduciary standard of care is necessary.

Piwowar is one of five SEC commissioners, and a majority would need to approve a fiduciary rule before it could be proposed.

NAIFA has long urged the SEC to ensure that any proposed rule would address real problems existing in the marketplace and would not bring unintended consequences for the investors it would aim to protect.

The SEC is currently reviewing comments from numerous industry organizations, including NAIFA, as it conducts a cost-benefit analysis.

NAIFA President John Nichols told Schoeff that NAIFA members already operate under a very stringent regulatory regime and that because their businesses are “relationship-based” rather than “transaction-based” it benefits them to work in the interests of their clients.

“We’re not the bad person,”  Nichols said. “The third tenet in our mission is to promote ethical conduct in our industry. That is so important.”
  • Posted February 5, 2014 IN
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2/11/2014 2:58:30 PM