The stream of important news on the fiduciary rule continues. Today, the market received the most tangible piece of news on the SEC’s involvement in the fiduciary rule yet. SEC chief Jay Clayton told Congress yesterday that his department was drafting a “[rule] proposal”. The comments are a definite escalation of the SEC’s involvement, as previously the SEC had only taken comments on the issue. Clayton reiterated that creating a rule will not be easy, but that it will work with the DOL. He said he is “confident” that the SEC can create a workable rule.
FINSUM: This is very good news, and frankly, came out sooner than we were expecting. There is no announced timeline for this yet, but they must at least be aiming to work within the new July 2019 implementation date for the current rule.