Before the Department of Labor rewrites its proposal to redefine fiduciary responsibility — a new proposal is expected in the first half of 2012 — there are three changes SIFMA would like to see in the rulemaking process, said SIFMA’s chairman emeritus, John Taft. The Department of Labor’s original rule was withdrawn in September.

First, any new rule “should be preceded with a real cost/benefit analysis,” Taft, who is also CEO of RBC Wealth Management’s U.S. operations, told Financial Planning in an interview. Secondly, the rule should not cover IRAs, he said, as IRAs will be covered by any standard the SEC proposes. The Dodd-Frank act authorizes the SEC to come up with a new uniform fiduciary standard of care, although there is no set deadline for this to happen.

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