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Uniform fiduciary standard for brokers and advisers on track, but slow – SEC official

Dec 07 2012 Stuart Gittleman, Compliance Complete

Securities and Exchange Commission staffers are recommending that the agency consider harmonizing broker-dealer and investment adviser regulation if it would meaningfully add to investor protection, Division of Investment Management director Norm Champ said Thursday. In January the staff recommended proposing a uniform fiduciary standard of conduct for brokers and advisers when providing personalized investment advice about securities to retail investors, Champ said at an American Law Institute Continuing Legal Education event on institutional advisory regulation. While the SEC considers the recommendation, the staff is gathering information and economic data for analyzing the potential costs and benefits of any eventual proposal, Champ added. This is an increasingly vital part of rulemaking because courts have struck down several recent SEC rules over the adequacy of the agency's cost-benefit analysis. However completely the SEC conducts any rulemaking on a fiduciary standard,

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