Certain Republican House lawmakers are questioning the need for a uniform fiduciary standard, adding more fuel to a legislative debate set to take place soon.
The Republican group, composed of House Capital Markets Subcommittee members, sent a letter to the Securities and Exchange Commission last Thursday. In that document, the lawmakers sided with two SEC commissioners, who in January called for more justification before implementing a new standard.
That dissenting opinion was delivered alongside an SEC study that recommended a uniform fiduciary standard of conduct for broker-dealers and investment advisers.
The SEC proposal aims to have those financial professionals answer to the same requirements and better protect investors. But the Republicans said that the study does not consider how the new rule could negatively affect investors. More research and information is necessary to justify a change to existing rules, the letter said.
It was not immediately clear what the Democrat members of the subcommittee thought about the issue. Subcommittee Ranking Member Maxine Waters, D-Calif., did not return a request for comment by press time.
