The Securities and Exchange Commission’s Investor Advisory Committee will host a panel discussion on the topic of who is required to serve in the client’s best interest during a public meeting in Washington D.C. on Thursday, September 19th, 2024 at 10 am EST.
The panel discussion titled, “Investment Advice: A History and Update on Who is Required to Serve in Your Best Interest,” came about because of the “uncertainty and confusion” among many investors as to when their financial professionals are “investment advice fiduciaries,” following the July 2024 Federal District Court stays of the Department of Labor’s Retirement Security Rule and related rulemaking.
Over the span of two days in late July, two different U.S. District Court judges in Texas
“In light of those court decisions and the varying definitions of fiduciary under SEC rules, ERISA and state law, this panel will discuss the differences, similarities and nuances of financial professionals’ obligations to their clients and how this may impact investors,” says the meeting’s official agenda regarding the panel discussion.
Over the course of two days in late July, two different challenges filed in Federal District Courts in Texas resulted in two different stays of the effective date of the Department of Labor’s Retirement Security Rule, which had been scheduled to take effect on Sept. 23.
Until both stays are resolved, retirement plan advisors will continue to follow the current fiduciary regulation, including the original five-part test and current prohibited transaction exemptions (PTEs) 84-24 and 2020-02.
Thursday’s panel is scheduled to run from 10:35 a.m. to 12:05 p.m. ET. The meeting will be webcast on the SEC website.
It will be moderated by Paul Sommerstad, Partner, Cerity Partners; Vice Chair of the Investor Advisory Committee Investor as Purchaser Subcommittee, and panelists include:
- Jason Berkowitz, Chief Legal & Regulatory Affairs Officer, Insured Retirement Institute
- Dr. Edwin Hu, Associate Professor, University of Virginia School of Law
- Allison Itami, Partner, Lathrop GPM
- Erin Koeppel, Managing Director, Government Relations and Public Policy Counsel, CFP Board
- Brian J. Tiemann, Partner, Employee Benefits, McDermott, Will & Emery
The Investor Advisory Committee, which focuses on investor-related interests, advises the Commission on regulatory priorities and various initiatives to help protect investors and promote the integrity of the U.S. securities markets. Established by the Dodd-Frank Act, the Committee is authorized by Congress to submit findings and recommendations to the Commission.
SEE ALSO:
• Fiduciary Rule Update and ERISA at 50 with Lathrop GPM’s Allie Itami
• IRI’s Jason Berkowitz: Why Biden’s Fiduciary Rule Gets it Wrong
• ERISA Attorneys Outline Next Steps, Actions Item After DOL Fiduciary Rule Stays
• Fiduciary Rule Stayed a Second Time in Texas
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
