The SEC will not implement a universal fiduciary standard for retail investment advice in Spring of 2011, as it had hoped.  Resistance from SEC Commissioners Kathleen Casey and Troy Paredes, both Republicans, means that the new rule will not go into effect until late 2011, at the earliest.  

In January, Commission staff delivered a fiduciary study to Congress, as mandated by the Dodd-Frank Reform Act.  That report called for SEC commissioners to extend the fiduciary duty requirement to broker dealers so as to protect investors - whom they say are confused by differing standards that investment advisers and brokers must meet.  But Commissioners Casey and Paredes have dissented, arguing that the study's conclusion was not backed up by rigorous economic analysis.  This led Congressional Republicans to write to SEC Chairman Mary Schapiro urging her not to proceed with rulemaking.  

At a recent ICI conference (Investment Company Institute), a senior advisor to Ms. Schapiro and coordinator of the fiduciary study, Jennifer McHugh, said that SEC action will "likely occur later in the year."  She added that the Commission had not formed a “rulemaking team” and continues to meet with outsiders "to get their reaction, rather than [move] straight to rulemaking.”   [Investment News, 3/28/11]