Fiduciary Rule

Head of industry group lobbying against the Labor Department's proposal is hopeful that the final regulation will address compliance objections and expand permissible transactions.

Labor Secretary tells skeptical lawmakers fiduciary proposal is a needed investor protection, as industry representatives contend rules would force them out of retirement segment.

Industry leaders believe the plan isn't ready.

Public hearings begin on Aug. 10 and comments may stretch beyond four months.

Advocates are calling on the head of the SEC to move forward with a uniform fiduciary proposal, even if that means pushing the rules through a divided commission split along party lines.

The SEC is weighing a requirement that brokers tell investors exactly where their stock trades go to be executed, a proposal that may address complaints that the decisions are sometimes made against the client’s best interests.

A measure that would put the brakes on the Department of Labor's proposal to establish a fiduciary standard for advisors to retirement plans was approved by the U.S. House of Representatives in a largely party-line vote on Tuesday.

As regulators continue their work implementing the numerous provisions of the Dodd-Frank financial reform act, a leading Wall Street trade group is hoping that 2013 will see movement on the controversial effort to implement a uniform fiduciary duty for investment advisors and broker-dealers when providing personalized advice to retail clients.

Leaders of the Financial Services Institute expressed cautious optimism about their efforts to dilute or derail an initiative under way at the Department of Labor to broaden the scope of the term "fiduciary," a top policy priority for the advocacy organization.