(Nasdaq) In what we think might be the worst case scenario for the industry, it is looking like the DOL and SEC are in a full scale partnership to regulate the wealth management industry.
With the DOL's announcement that it is taking another crack at the fiduciary rule, and its guidance that it would issue a new rule in September 2019, many insiders now expect that the DOL and SEC are working together to craft a comprehensive package of fiduciary regulations.
According to Fred Reish, a top industry lawyer, "It appears that DOL and the SEC have coordinated their agendas so that the SEC's rules can be incorporated into a new exemption for prohibited transactions resulting from non-discretionary fiduciary advice".
FINSUM : Some think this is a good sign, but more partnership between the regulators means a more diverse set of rules to adhere to. Further, there will inevitably be significant gaps between the different agency rules, leaving a lot of doubt and grey area, which causes headaches for anyone trying to play by the rules.
