ASPPA Urges SEC to Improve Disclosures

The following is a statement from Brian H. Graff, Executive Director & CEO of The American Society of Pension Professionals & Actuaries (ASPPA) and Executive Director of The National Association of Plan Advisors (NAPA) in response to a request for information on File Number 4-606 on the Duties of Brokers, Dealers, and Investment Advisers from the U.S. Securities and Exchange Commission (SEC):

“ASPPA and NAPA believe the proposal by the U.S. Securities & Exchange Commission (SEC) to create a ‘uniform fiduciary standard’ for broker-dealers and investment advisers will actually cause more – not less – confusion for retail customers. This recommendation would effectively result in a non-uniform “uniform fiduciary standard” leading to significantly increased confusion for retail customers when selecting an investment professional.

Instead of mislabeling all investment professionals who are governed by different requirements, we believe improved disclosure will better serve retail customers. One solution the SEC should consider is to require broker-dealers and investment advisers to provide retail customers with clear and concise pre-engagement disclosures designed to assist the retail customers in the selection of investment professionals. 

We urge the SEC to take the lead to ensure that concise, consistent disclosures are provided by broker-dealers and investment advisers to protect retail customers’ access to investment advice, regardless of the method by which their investment accounts are taxed.”

For more detail on ASPPA and NAPA’s recommendations to the SEC read our comment letter here.

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