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Amid uncertainty, SEC’s entrance into Fiduciary rule saga takes shape

Joe Mont | November 14, 2017

If there was such a thing as placing a bet on whether or not there will be a fiduciary duty rule from the Department of Labor, the odds keep changing.

In April 2016, the Labor Department finalized a new rule that creates a fiduciary duty for brokers and registered investment advisers who offer retirement advice. They are held to a higher standard of customer care, one with best practices and prohibitions on conflict of interest.

The rule, to put it mildly, is under attack. Recently passed House legislation, if agreed to by the Senate, would kill the rule. There is also bad news for its prospects with a stay of implementation ordered by a Minnesota judge this month. Thrivent Financial for Lutherans, a large non-profit, demonstrated that it would face irreparable harm by the rule’s encouragement of class-action lawsuits to settle investor grievances.

Then again, lawsuits demanding the Fiduciary rule’s reinstatement are also working their way through the courts.... To get the full story, subscribe now.