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Stories of Interest
- Goldman's Lloyd Blankfein Seems to be Making a Habit Out of Trolling Trump
- Goldman on Hunt for Star Traders to Revive Struggling Commodities Unit
- Yahoo Owes Millions for Busting NCAA Tourney Bracket Deal
- JPMorgan Joins 21st Century Fox in Fighting 'Deep Divisions Across Our Country'
- Please, God, Save Gary Cohn From Himself: The Case for Resigning
- Regulatory Considerations When Bringing on a New Advisor
- Why Deutsche Bank is at Mercy of Regulators
- U.S. Treasury Auction Class-Action – Federal Judge Causes Interminable Delay
- Mnuchin Rejects Calls to Resign and Defends Trump
- Best Time to Go to the U.S. (Tennis) Open Tourney - Before It Starts on August 28
- Stifel Prevails in Arbitration But Ex-Hilltop Employees Hit with Awards - Bill Singer
- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
- SEC Drops Case Against Ex-JPMorgan Traders Over 'London Whale'
- Financial Advisers That Invest in Technology Need to Accomplish These Two Things
- FINRA Amends Codes Regarding Expedited Arbitrator List Selection
- FINRA July 2017 Quarterly Disciplinary Review (Podcast)
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NEWSLETTERS & ALERTS
Rules & Regulations
Suspending the Fiduciary Rule: The Process Has Begun
The Department of Labor has requested an 18-month delay in implementing the remaining parts of its fiduciary rule, according to a brief that was filed in a Minnesota lawsuit Wednesday. In that brief, the DOL indicated it had submitted to the Office of Management and Budget a proposal to delay the rule from 1/1/18 until 7/1/19. The OMB must review and approve the proposal before it can go into effect.
While 2 provisions of the rule were implemented as of June 9, 2017, the heart of the rule – the actual fiduciary rule contract and disclosure requirements - are set to become effective as of 1/1/18. On that date, here’s what would go into effect:
- The best interest contract exemption requires that the advisor’s firm enter into a contract with the client that commits the advisor to act in the best interests of the client. The contract must contain an acknowledgement of the fiduciary status of the firm and its advisors.
- The contract requires that the firm and its advisors will adhere to certain impartial conduct standards (including the best interest standard). The DOL has clarified that the impartial conduct standards are measured based on the circumstances as they exist at the time of the recommendation, rather than upon the ultimate performance of the investment, however.
- The contract must contain the firm’s warranty that it has adopted, and will comply with, policies and procedures designed to mitigate conflicts, and must include a disclosure about the firm’s services, including its fees and compensation practices.