The Securities and Exchange Commission is “flat out doing” a fiduciary rule for broker-dealers providing financial advice to retail investors, SEC Chair Mary Jo White said Tuesday.
She added her staff is working full time on developing it.
However, White refused to estimate the chances a proposal would be presented to the commission before President Obama leaves office in 13 months.
She noted there are a number of points of view that should be included in a best-interest standard and it is important a rule not deprive investors of reliable, reasonably priced advice.
Speaking at SIFMA’s annual conference in Washington, D.C., White said her agency’s enforcement actions have led to immediate changes in behavior in the allocation of fees and expenses between funds and advisors.
Looking at cybersecurity, she said there has to be exchanges of information on assaults between companies and government agencies, though some are reluctant to provide it at times.
She praised the memo by Deputy Assistant Attorney General Sally Yates urging increased prosecution of financial industry workers for crimes (instead of just concentrating on their companies), saying it represents a constructive focus for DOJ regional offices.
On a more jovial note, White said, “I’m having fun for most days for part of the day” as the SEC's leader.