Rep. Wagner On SEC's Proposed Fiduciary Standard
WASHINGTON - Congresswoman Ann Wagner (MO-02) released the following statement on the U.S. Securities and Exchange Commission (SEC) proposal to create a new standard of conduct for investment advisers and broker-dealers.
“After eight long years, the SEC is finally returning as the rightful regulator of broker-dealers,” said Congresswoman Ann Wagner. “Since taking on this fight against the Department of Labor (DOL) fiduciary rule almost six years ago, I have always argued that oversight of broker-dealers must be about Main Street Americans and their access to sound financial advice. Plain and simple, the DOL rule was confusing, lacked sufficient economic analysis to be taken seriously, and was already hurting low and middle income retirement savers. Today’s decision by the SEC is an important first step in overturning years of misguided policy. I applaud Chairman Clayton and look forward to working with him going forward. It is past time we create a best interest standard for broker-dealers that benefits consumers and protects their access to financial products.”
Section 913 of the Dodd-Frank Act instructed the Securities Exchange Commission (SEC) to conduct a study on the effectiveness of existing legal or regulatory standards of care for brokers, dealers, and investment advisers. Although Dodd-Frank gave the SEC rulemaking authority, the Department of Labor (DOL) issued its final version of the fiduciary rule, which President Trump delayed in 2017. Last month, the U.S. Court of Appeals for the 5th Circuit voted to vacate the Labor Department’s fiduciary rule, ruling that the DOL lacked jurisdiction over fiduciary standards.
Congressman Ann Wagner has been a leading voice in repealing the DOL’s fiduciary rule. In the 113th, 114th and 115th Congresses, Representative Wagner passed legislation repealing the DOL’s rule and creating a best interest standard that serves retail investors and families saving for their futures.