By: Steven E. Saltzman
In days of old, boxing matches used to be circular spaces in a crowd of onlookers, rather
than the square, roped 'rings' of the contemporary sport. Any challenger who fancied his chances in a bout would throw in his hat— which was a more reliable way of putting oneself forward than just shouting over the din of the crowd.
Yesterday, in a 4-1 vote, the five SEC commissioners voted in support of a proposed package of rulemakings and interpretations supporting new standards of conduct for investment professionals, effectively announcing their willingness to enter the fight.
The proposed rules and interpretations are the SEC’s long-awaited response to the Dodd Frank Wall Street Reform’s directive and to the ongoing saga associated with the DOL’s Fiduciary Rule.
There is already a plethora of articles available for everyone to read about yesterday’s SEC hearing and insights on the proposals- so I will not spend time duplicating that effort. Rather, this post will focus on hitting the high notes of the SEC’s proposal and providing links to the relevant resources for you to review/consider.
Please know that the sum total of the proposal package is nearly 1,000 pages, so it’s going to take a while to plow through it. You can access (and download) the proposals at the SEC’s Proposed Rules page on its website. Specifically, look for the three proposals dated April 18, 2018 (Release Nos. 34-83063, IA-4889, and 34-83062).
Since the U.S. Court of Appeals for the Fifth Circuit decision to vacate the DOL’s Fiduciary Rule in its entirety, the spotlight now squarely rests on the SEC and its newly proposed package of rules and interpretations. That said, the DOL still has until the end of April to appeal the ruling before it becomes effective on May 7th. And, it’s not a forgone conclusion that they will just let go of their defense. The next eight business days could be very interesting.
Let’s get ready to rumble…
We hope that these postings are helpful. We will continue to provide updates when relevant as important information related to this topic becomes available.
Contact Steve Saltzman with questions or comments at firstname.lastname@example.org.