In a speech before the
However, while Schapiro may be bullish on the agency’s ability to promulgate a uniform fiduciary standard, that doesn’t mean such a rule is in the bag. The SEC is charged with conducting a six-month study on the differences between the fiduciary standard under the Investment Advisers Act of 1940 and the suitability standard non-registered investment advisers are held to by
The debate is likely to get heated, to say the least. Banks, in particular, could be hurt by a blanket fiduciary standard, which could hypothetically put an end to platform programs if a new rule stipulated that investors pay a flat fee for anything they buy because many bank clients have fewer assets to invest.
Heywood Sloane, managing director of the
“As the SEC works through this, it has to allow people to provide services in a way that earns them a living,” he says. “If not, you’ll see only high-net-worth individuals taken care of because the margins will be too tight on smaller accounts."