SIFMA Fears New DOL Rules Could Hurt Brokers

Posted on January 29th, 2014 at 9:20 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The Securities Industry and Financial Markets Association (“SIFMA”) supports a uniform fiduciary standardto govern all financial professionals. But SIFMAfears that new Department of Labor (“DOL”) rules could hurt brokers who both provide advice and traditional brokerage services. They also argue that writing the standard should be the work of another government agency.

Both the SEC and DOL are working on fiduciary rules in order to ensure that their regulatory efforts are appropriately harmonized. SIFMAhas urged the SEC to find a middle ground between the needs of the investment advisor and the broker-dealer, and, at the same time,protecting the clients’ interests. However, DOL is responsible for enforcing rules under the Employee Retirement Income Security Act (“ERISA”) which imposes high standards of care and loyalty on the fiduciaries of pension plans and IRAs to protect plan participants and IRA customers from the dangers posed by advisors’ conflicts of interest. Accordingly, DOL is expected to offer a stronger standard than the SEC. Indeed, DOL rules are believed by some industry observers to hold brokers to the same standards as RIAs and certified financial planners.That’s something that SIFMAargue could be very difficult for many of its members, especially those advising clients on qualified assets.SIFMA claims, “The DOL‘s fiduciary proposal would adversely affect millions of IRA holders and plan participants with assets expected to reach $7.3 trillion by 2016.”

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services. 

Related Attorneys: James J. Eccleston


Return to Archive



Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.

January 20, 2022
Edward Jones Fails To Convince Supreme Court To Review Federal Preemption of Account Fee Suit

Edward Jones & Co. failed to convince the U.S. Supreme Court to analyze how a federal securities law impacts a client dispute pertaining to fee-based accounts.

January 19, 2022
SEC Charges Texas Entities Over Oil and Gas Fraud

The Securities and Exchange Commission (SEC) has charged The Heartland Group Ventures, Heartland Production and Recovery, six other Heartland-affiliated entities, four Heartland-affiliated individuals as well as several oil and gas operators.