Washington insiders involved with advisor issues are predicting tougher Securities and Exchange Commission enforcement actions and a rollout of President Obama’s myRA savings plan that will be so successful it will become a model for the states.

To get the Washington forecast for the year ahead on advisor concerns, we asked Investment Adviser Association President and CEO Karen Barr, Employee Benefit Research Institute President and CEO Dallas Salisbury, Insured Retirement Institute President and CEO Cathy Weatherford, AARP top lobbyist David Certner, and National Association of Insurance and Financial Advisors lobbyist Judi Carsrud.

Here are our experts' predictions for the SEC, the Department of Labor, Treasury, Congress, the Supreme Court and the Commodity Futures Trading Commission.

Securities And Exchange Commission

IAA President and CEO Karen Barr

“The SEC will continue to ramp up its enforcement cases against investment advisors, including cases involving allocation (cherry picking) and aberrational performance, as well as its broken windows initiative targeting rule violations that do not necessarily result in investor harm.

“The SEC will place greater emphasis on risk management by advisors. We predict regulatory movement in terms of more data gathering, especially collecting data on separately managed accounts, to fill perceived data gaps. This initiative may come via proposed amendments to Form ADV.

“Chair Mary Jo White recently announced that the SEC may act on transition plans so that advisors are prepared for loss of key personnel, dissolution or a major business disruption; annual stress testing by large investment advisors and large funds; and a focus on addressing systemic risks in the financial system. The “SEC may also consider refinement of accredited investor qualifications. At this point, I have gotten out of the business of making predictions about the SEC’s fiduciary rulemaking.”

EBRI President and CEO Dallas Salisbury

“The SEC will complete action on executive compensation reporting.”

President and CEO Cathy Weatherford

“The Securities and Exchange Commission will adopt a variable annuity summary prospectus rule.” (Editor’s note: The summary would be a shortened, plain English version of the main prospectus to make an annuity more easily understood by retail investors.)

Department of Labor

AARP top lobbyist David Certner

“We expect the Department of Labor to send a reproposed fiduciary rule to the White House’s Office of Management and Budget for clearance, and that will once again ignite a battle over whether advisors should be permitted to give advice not in the best interests of their clients.”

IRI’s Weatherford

“The DOL will release a new fiduciary rule, either following the approach used during 2010 or a new approach that will avoid the unintended consequences of millions of Americans losing access to help in preparing for retirement and losing access to employer provided retirement plans.

“The DOL will also adopt a rule providing workers with much greater access to guaranteed lifetime income products in retirement plans that provide income workers can't outlive.

“DOL will adopt a rule that will provide workers with helpful illustrations of how their savings will translate into monthly income payments during retirement.”

EBRI’s Salisbury

“DOL will publish a revised 'conflict of interest standard' that will be tighter than the current multi-part rules and will take actions to allow myRA as a route to state approaches to expanding worker access to payroll deductions into retirement accounts without being deemed "an employee benefit plan' for ERISA purposes.”

NAIFA’s lobbyist Judi Carsrud

“We predict that the Department of Labor will release a re-proposal of a rule that would redefine who is a fiduciary when offering education, advice and services to retirement savers.

“We remain confident that Congress will exercise its oversight authority if the rule is detrimental to a disparate class of retirement savers.” 

Congress

NAIFA’s Carsrud

“We believe that Congress understands the importance of access and choices that Middle American’s need as they ready themselves for retirement and that Congress will act accordingly if the Department of Labor’s rule impedes that access.

IAA’s Barr

“Congress will consider means of increasing federal oversight of advisors. Some members of Congress will also increase the pressure on the SEC both to re-allocate resources and use its existing resources more efficiently to enhance adviser oversight.

“Congress will hold hearings on Federal Reserve transparency.”

IRI’s Weatherford

“Legislation to create The National Association of Registered Agents and Brokers (NARAB II) will again receive strong bipartisan support and will pass Congress and be signed into law by President Obama, providing important consumer protections, retaining states’ authority to regulate the marketplace, and ultimately removing a barrier that is impeding broker-dealers’ ability and financial advisors’ willingness to sell lifetime income products.

“Congress will adopt legislation that will enhance workers' access to employer provider retirement plans; expand their ability to save more through enhanced auto enrollment and escalation plan features; and will make more widely available their access to guaranteed lifetime income products in retirement plans to provide income workers cannot outlive.”

EBRI’s Salisbury

“Congress will move forward with tax reform and retirement related legislation, even if it is not passed until after the 2016 Presidential election.”

Treasury Department

EBRI’s Salisbury

“The Treasury Department successfully launch myRA and it will become a model for the states to deliver the payroll deduction opportunity to workers with ease for employers and no required ERISA documents, liabilities, etc.”

IAA’s Barr

“The Treasury Department may well re-propose Anti Money Laundering rules for investment advisers.”

IRI’s Weatherford

“The Treasury Department will pass a rule allowing for partial annuitization of annuity investments held in retirement plans eliminating the all or nothing dilemma retirees face today by providing them the ability to tailor withdrawals to their individual needs.”

Commodity Futures Trading Commission

IAA’s Barr

“The CFTC will be active in continuing to implement rulemaking regarding trading, clearing, reporting, and disclosure for OTC swaps, as well as the regulation of intermediaries in the derivatives market. We will continue to urge the CFTC to continue to work to harmonize CFTC and SEC regulation affecting CPOs and CTAs, as well as the application of Title VII to cross-border transactions.”

Supreme Court

EBRI’s Salisbury
“Will allow subsidies for those that signed up on the federal health exchange.”