House to Vote on Financial Services Bill Regarding Broker-Dealer Fiduciary Responsibilities

The Retail Investor Protection Act (H.R. 2374) will be voted on by the House this week.  The Bill addresses Dodd-Frank Section 913 (“Study and Rulemaking Regarding Obligations of Brokers, Dealers and Investment Advisers”), which permits but does not require the SEC to issue rules that extend fiduciary responsibilities which currently apply to investment advisers to broker-dealers.  H.R. 2374 would require the SEC to consider all other options before moving forward on a fiduciary standard for broker-dealers.  The bill would further require the SEC to identify if expanded fiduciary standards would result in less access to financial products and services for retail investors.  Additionally, the bill would require that the DOL wait until the SEC completes its rulemaking before proposing any rules altering the definition of a fiduciary. 

See: House Financial Service Committee Press Release.
See also: H.R. 2374.
Related news: House Subcommittee Approves Four Financial Services Bills (June 21, 2013).

 

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