SIFMA Supports Retail Investor Protection Act

SIFMA expressed its general support for the adoption of H.R. 1090 ("Retail Investor Protection Act"). The act would require the SEC (rather than the Department of Labor) to take the first action in establishing a uniform fiduciary standard.

In its comment letter to the House Committee on Financial Services, SIFMA stated that the DOL's proposal would result in bifurcated and conflicting standards, redundant compliance regimes, and unnecessary confusion and costs among investors. SIFMA encouraged the implementation of a best-interest standard that follows the traditional securities regulatory approach by establishing a heightened benchmark, including robust disclosure, coupled with examination, oversight and enforcement by the SEC, FINRA and state securities regulators.

SIFMA asserted that as drafted, H.R. 1090 emphasizes the lead role of the SEC as the nation's primary securities regulator, and that nothing in H.R. 1090 precludes the SEC from taking regulatory action, as it deems appropriate.