Since the 2008 SEC RAND Report, “investor confusion” has been the central story. The Institute argues that bad language, instead, is to blame.
Research
Fiduciary Leaders Call on SEC to Repair Defects of Rulemakings and Interpretation to Restore Investor Trust
Major repairs to Reg BI, Form CRS and Adviser Act guidance are proposed to affirm broker and adviser differences and to level with investors
Institute Comment Letter to Iowa Insurance Divison on “Best Interest Standard of Care for Insurance and Securities Professionals”
The Institute submitted a comment letter to the Iowa Insurance Division on its proposed rulemaking in light of SEC’s Reg BI.
Advisors as Fiduciaries
By Arthur Laby — This Article provides a sustained account of advice giving as a fiduciary activity, and it demonstrates that the dominant approach to defining fiduciary relationships is flawed. Leading academic commentators assert that fiduciary relationships only arise when one party has discretion over the assets or affairs of another.
Institute Paper: SEC, CFP Board Standards Abandon Advisers Act Principle that Treats Sales and Advice Differently
Regulators treated brokerage sales and fiduciary advice differently for years, stressing the harms and risks of conflicts of interest. Avoiding conflicts, if at all possible, was the norm. That was yesterday.
Jay Clayton: Reg BI Still Coming June 30th
SEC staff to issue two “Risk Alerts” for further guidance.
