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DOL Fiduciary News: September 24, 2018

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Clayton declines to set timeline for final SEC advice rule 

InvestmentNews; Sep 21, 2018 @ 1:38 pm

Securities and Exchange Commission chairman Jay Clayton won't set a deadline for the agency to complete its work on investment advice reform.

"I have no specific date set yet," Mr. Clayton told reporters Thursday night in Baltimore, following an investor roundtable focused on the proposal. "It's not this month, probably not next month. We have work to do."

The SEC received thousands of comments letters as well as feedback in several investor roundtables like the one in Baltimore. Mr. Clayton said the agency needs to sift through all of that information. 

Investors Give Best-Interest Rule Thumbs Down At SEC Event 

Financial Advisor; September 21, 2018

About 30 investors told SEC Chairman Jay Clayton that while the SEC’s best-interest customer disclosures are needed by investors as [they] decide which type of investment professional to hire, the agency's proposed document just doesn’t work.

The investors, many of them retirees, said at the agency’s seventh investor roundtable on Thursday that they had difficulty understanding the "Regulation Best-Interest" proposal and the customer relationship summary (CRS) form that goes with it. 

CFP Board opposes state regulation of financial planning process 

InvestmentNews; Sep 24, 2018 @ 12:05 am

The Certified Financial Planner Board of Standards Inc. announced Monday that it opposes state regulation of planners.

The organization is staking out its position to try to preempt potential bills from percolating in statehouses as most legislatures come back into session early next year.

Although some states recently approved bills to reform credentialing that could put new restrictions on using the CFP mark, there is no specific legislation to regulate the process of financial planning — and CFP Board wants to keep it that way.

CFP Board chairman Richard Salmen asserted that state regulation would be costly and burdensome for CFPs, who often have clients spread across many states.

"Financial planning has developed as a very interstate profession rather than an intrastate profession, like being a doctor or lawyer," said Mr. Salmen, president of Family Investment Center. "I've got clients in 20-some states, and most financial planners do. A patchwork of legislation around the country that's not the same — we just don't see that as the right way to regulate this new profession of financial planning."