Fiduciaries 1

Fiduciaries 1 - Broker-Dealers and Other Non-Fiduciaries as...

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Broker-Dealers and Other Non-Fiduciaries as Fiduciaries? by W. Scott Simon | 09-03-09 I normally don't worry too much about legislative and regulatory proposals concerning the financial-services industry for two reasons. First, most such proposals eventually fall by the wayside. Second, I can't influence their outcome anyway. I thought, nonetheless, that it might be interesting this month to explore one of these proposals that is shaping up as a truly monumental wrestling match between the executive branch of the federal government and the mighty special interest groups whose members can be impacted so heavily by it. This match has now commenced with the proposed Investor Protection Act of 2009 and the Department of Treasury white paper titled "Financial Regulatory Reform, a New Foundation: Rebuilding Financial Supervision and Regulation." Part of this proposal, in which the Obama administration is effectively pitted against the broker-dealer industry, seeks to (1) subject broker-dealers providing investment advice to their clients to a fiduciary standard and (2) "harmonize" the regulation of broker-
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