Jul
16
2010
Financial Regulatory Reform Bill Passes
Yesterday, the Senate voted 60-39 to approve the 2,315 page financial regulatory reform bill. The President is expected to sign the legislation sometime next week. The final Dodd-Frank bill requires the SEC to conduct a comprehensive study of all the issues involved in harmonizing the regulation of all providers of retail financial advice, including a fiduciary standard of care and enhanced supervision of RIAs. When signed by the President into law, the SEC would be required to report the results of the study to Congress within six months. At the conclusion of the study, the SEC may promulgate rules that would impose an obligation to act in the best interest of the client without regard to the financial or other interests of the broker, dealer, or investment adviser providing the advice.
“After almost two years of legislative activity, the real work begins as implementation of regulatory reform falls to the SEC and other regulators,” said Dale Brown, President & CEO of the Financial Services Institute. “We are already working to articulate unintended consequences and to bring the unique perspective of independent broker-dealers and financial advisors to this process.”
Our ultimate goal has been, and remains, a standard of care that works in all client situations and in all business models, combined with an industry-funded self-regulatory organization for investment advisers. We have supported the inclusion of the SEC study in the final bill throughout the legislative process. We believe the study represents the best available opportunity to achieve our goals.
We would like to thank everyone who acted on this important issue.
