April 12 2018


Herb Perone

IAA Statement on SEC Scheduling of Fiduciary/Standards of Conduct Rule Proposal

Washington, DC (April 12, 2018) –- Following is the statement of Investment Adviser Association Karen Barr on the SEC’s scheduling of its Fiduciary/Standards of Conduct Rule Proposal for April 18:

“The Investment Adviser Association has long advocated that all financial services professionals providing investment advice be held to a standard of conduct as stringent as the one that binds investment advisers – the well-established fiduciary duty under the Investment Advisers Act of 1940. The IAA is pleased that the SEC will be proposing a new standard of conduct rule for broker-dealers that we hope will be as robust as the Advisers Act standard – such a rule is crucial for investor protection.

“The IAA also supports efforts aimed at ensuring that investors understand key elements of their relationship with their financial services professional. We look forward to reviewing and weighing in on the new disclosure document the SEC is likely to propose.

“We are pleased that, as the IAA strongly advocated, the SEC is not proposing new conduct rules under the Advisers Act. However, the SEC proposal is also expected to include a provision for ‘interpretive guidance’ under the Act. The IAA believes that the fiduciary duty under the Investment Advisers Act is well-understood and has served investors, the economy and the capital markets well for more than 75 years. We are encouraged to see that the SEC will solicit comment from the industry on any proposed interpretive guidance.”

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About Investment Adviser Association

The Investment Adviser Association (IAA) is the leading trade association representing the interests of SEC-registered investment adviser firms. The IAA’s more than 600 member firms collectively manage approximately $20 trillion in assets for a wide variety of institutional and individual investors. In addition to serving as the voice of the advisory profession on Capitol Hill and before the SEC, DOL, CFTC and other U.S. and international regulators, the IAA provides extensive compliance and educational services to its membership. For more information, visit www.investmentadviser.org or follow us on LinkedIn, Twitter and YouTube.

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