Fiduciary Duty

SIFMA strongly supports enhancing investor protections by establishing a heightened and more stringent broker-dealer best interest standard. The SEC should establish such a uniform best interest of the customer standard.

Since early 2009, SIFMA has consistently advocated for the establishment of a uniform best interest standard for financial professionals when providing retirement advice. We continue to support such a standard under the industry’s primary regulator, the U.S. Securities and Exchange Commission (SEC). Specifically, the standard should:

  • Apply the best interest standard across all securities recommendations made to retail customers in all broker-dealer accounts, not just to IRA accounts.
  • Fit the best interest standard within the existing and long-standing securities regulatory regime for broker-dealers.
  • Require rigorous examination, oversight, and enforcement by the SEC, FINRA and state securities regulators.

Together with the U.S. Chamber of Commerce, Financial Services Institute, Financial Services Roundtable, Greater Irving-Las Colinas Chamber of Commerce, Insured Retirement Institute, Lake Houston Area Chamber of Commerce, Lubbock Chamber of Commerce and Texas Association of Business, SIFMA has filed a legal challenge to the Department of Labor’s fiduciary standard of conduct rule for brokers and registered investment advisors serving people with Individual Retirement Accounts (IRAs) and 401(k) plans. Unfortunately, this lawsuit is necessary to protect retirement savers from DOL’s misguided rule that makes saving for retirement more difficult for the very same savers it seeks to protect.

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