{"id":5259,"date":"2011-11-28T00:00:00","date_gmt":"2011-11-28T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/11\/finra_may_put_forward_another"},"modified":"2022-04-04T13:05:51","modified_gmt":"2022-04-04T18:05:51","slug":"finra-may-put-forward-another","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/","title":{"rendered":"FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty"},"content":{"rendered":"\n<p>According to FINRA CEO and Chairman Richard G. Ketchum, the SRO may put out a second concept proposal about its stance regarding disclosure obligations related to a possible Securities and Exchange Commission rulemaking about formalizing a uniform fiduciary duty standard between broker-dealers and investment advisers. Currently, the 1940 Investment Advisers Act defines the investment advisers\u2019 fiduciary obligation to their clients, while broker-dealers are upheld to suitability rules that will be superseded next August by two FINRA rules regarding broker-dealer suitability standards.<\/p>\n<p>The Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s Section 913, however, said that it is SEC\u2019s responsibility to determine whether these current regulatory and legal standards s are still effective and if any regulatory shortcomings that exist need to be filled. In July 2010, the SEC asked stakeholders for feedback about this mandates. After receiving over 3,000 public comments, it issued a study recommending that there be a uniform fiduciary standard for both types of representatives when giving advice to retail clients. The SEC could put out its proposed rule by the end of this year. <\/p>\n<p>FINRA is working with the Commission on this and plans to stay involved in the process. It was just last year that the SRO put out a concept proposal seeking public comment about the idea that broker-dealers should have to provide retail investors with certain disclosures at the start of a business relationship. These clients would be required to give a written statement detailing the kids of services and accounts they provide, any conflicts of interests, and limits on duties that they are entitled to expect. FINRA said that regardless of what a unified fiduciary standard would look like, retail investors would benefit from getting this disclosure document at the start and that such a mandate is an \u201coutright necessity.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/\"  title=\"Continue Reading FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to FINRA CEO and Chairman Richard G. Ketchum, the SRO may put out a second concept proposal about its stance regarding disclosure obligations related to a possible Securities and Exchange Commission rulemaking about formalizing a uniform fiduciary duty standard between broker-dealers and investment advisers. Currently, the 1940 Investment Advisers Act defines the investment advisers\u2019 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3960,3739,3781,3761,3963],"tags":[],"class_list":["post-5259","post","type-post","status-publish","format-standard","hentry","category-doddfrank-wall-street-reform-a","category-finra","category-investment-advisers","category-securities-and-exchange-commis","category-securities-law-and-regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty &#8212; Investor Lawyers Blog &#8212; November 28, 2011<\/title>\n<meta name=\"description\" content=\"According to FINRA CEO and Chairman Richard G. Ketchum, the SRO may put out a second concept proposal about its stance regarding disclosure obligations &#8212; November 28, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty &#8212; Investor Lawyers Blog &#8212; November 28, 2011\" \/>\n<meta name=\"twitter:description\" content=\"According to FINRA CEO and Chairman Richard G. Ketchum, the SRO may put out a second concept proposal about its stance regarding disclosure obligations &#8212; November 28, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty &#8212; Investor Lawyers Blog &#8212; November 28, 2011","description":"According to FINRA CEO and Chairman Richard G. Ketchum, the SRO may put out a second concept proposal about its stance regarding disclosure obligations &#8212; November 28, 2011","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/","twitter_card":"summary_large_image","twitter_title":"FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty &#8212; Investor Lawyers Blog &#8212; November 28, 2011","twitter_description":"According to FINRA CEO and Chairman Richard G. Ketchum, the SRO may put out a second concept proposal about its stance regarding disclosure obligations &#8212; November 28, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty","datePublished":"2011-11-28T06:00:00+00:00","dateModified":"2022-04-04T18:05:51+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/"},"wordCount":528,"articleSection":["Dodd-Frank Wall Street Reform and Consumer Protection Act","FINRA","Investment Advisers","Securities and Exchange Commission","Securities Law and Regulations"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/","url":"https:\/\/www.investorlawyers.com\/blog\/finra-may-put-forward-another\/","name":"FINRA May Put Forward Another Proposal About Possible SEC Rule Regarding Fiduciary Duty &#8212; Investor Lawyers Blog &#8212; November 28, 2011","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2011-11-28T06:00:00+00:00","dateModified":"2022-04-04T18:05:51+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"According to FINRA CEO and Chairman Richard G. 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