We try our best to keep up. With all that’s happening, it ain’t easy.
This interviewed titled “2018 Fi360 Conference – Fred Reish, Drinker, Biddle & Reath, LLP” is an interview conducted by 401(K) Specialist with Fred Reish at the 2018 Fi360 Conference in San Diego. The discussion focuses on the SEC’s recent regulatory proposals related to fiduciary responsibilities and broker-dealer standards.
Key points covered include:
1. **Regulation Best Interest**: A proposed rule that establishes a standard of care for broker-dealer advisors, focusing on how conflicts of interest should be managed.
2. **Title Distinction**: The SEC is working on separating the titles used by broker-dealers and investment advisors to reduce confusion among retail customers. The idea is that investment advisors have ongoing relationships with their clients, whereas broker-dealers operate on a transactional basis with no duty to monitor afterward.
3. **Fiduciary Rule**: There’s a discussion about whether a fiduciary rule will be introduced, with the SEC Chairman suggesting that the term “fiduciary” is too emotionally charged to foster productive conversations. However, the new standards, despite not using the term, may effectively impose fiduciary-like responsibilities on broker-dealers.
The video concludes with Fred Reish predicting that the SEC and DOL rules might converge over the next few years, potentially allowing the fiduciary term to be reintroduced in a more accepted manner.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
