Displaying items by tag: compliance

(New York)

Nobody in the industry wants to hear it, but that doesn’t mean it isn’t true. Think Advisor has just published an article arguing that the DOL rule may still pose a comeback and that RIAs need to keep the DOL-guided compliance procedures they developed in place. The argument is that though the DOL let the May 1st appeal deadline to its Fifth Circuit Court loss pass, it still has until June 13th to escalate the case to the US Supreme Court. If it does so, a stay in the Fifth Circuit Court’s ruling is likely, meaning the rule would technically still be in place until the Supreme Court delivers its verdict.

FINSUM: Obviously no one knows what the DOL will do, especially because the motivation to escalate this seems to be lacking. That said, it still has the choice and so advisors must keep their compliance policies in place.

(New York)

Despite the fact that the DOL says it will no longer enforce the fiduciary rule in any capacity, those in the industry say that firms should not abandon their fiduciary rule compliance. The reason why is that despite all the momentum against the rule, it is still not officially gone. That means the DOL could change course and decide to enforce the rule at any time, giving no comfort about getting rid of fiduciary rule compliance for firms.

FINSUM: So our view is that the whole fiduciary rule playing field is more uncertain after this court ruling. The SEC could still be dissuaded from proposing a new rule, and the current rule could still hold up in court, with both possibilities completely changing the picture.