SEC Chairman Mary Schapiro has said the Commission will address RIA/BD reform along with fund regulation this summer - after 7/21/11, the one-year anniversary of Dodd-Frank.  The Commission will “put together a rulemaking team” to craft a rule for putting brokers under the same fiduciary standard as advisors.  At the same time, the SEC wold look at harmonizing advisor and broker rules, and revising mutual fund distribution fees under Rule 12b-1. 

Ms. Schapiro initially made these remarks at the Investment Company Institute’s (ICI) annual conference in Washington.  She also has asked SEC economists to analyze available economic data regarding fiduciary duty to help inform the rulemaking.  Some lawmakers have called for a cost-benefit analysis before any fiduciary rule is promulgated.  While the SEC, she said, is focused on putting “in place a fiduciary duty [for brokers] that is no less stringent” than the duty under the Investment Adviser Act, she stressed that any rule must “not limit investor choice.”

As far as an SRO for advisors, Ms. Schapiro said that, while the SEC continues to explore the issue, all 3 options put forth in the SEC’s study to Congress - i.e., one or more SROs, extension of FINRA oversight over advisors, imposing user fees to fund advisor exams - would require legislation to “move forward.”

The SEC also is moving forward with the second phase of money market fund reform.  The SEC is “really pleased with what we are seeing and hearing in response to our first round of money market fund reform put in place last year.”  [AdvisorOne, 6/1/11]