SEC Chairman Jay Clayton. (Photo: New York Law Journal)
The Securities and Exchange Commission plans to consider the agency's long-awaited — and much anticipated — fiduciary proposal on Wednesday.
In an open meeting notice on the agency's website, the securities regulator states that it will consider whether to propose:
- New and amended rules and forms to require registered investment advisors and registered broker-dealers to provide a brief relationship summary to retail investors.
- A rule to establish a standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer.
- A Commission interpretation of the standard of conduct for investment advisors.
SEC Chairman Jay Clayton reiterated Tuesday that issuing a fiduciary proposal soon was a priority for him. "I've been clear, the sooner the better. We're working through the process. I'd like to see it very soon," Clayton said at the Equity Market Structure symposium in Chicago.
Clayton said in mid-March that the recent 5th Circuit Court of Appeals ruling torpedoing the Labor Department's fiduciary rule wasn't impeding the SEC's efforts to write its own fiduciary rule.
