SEC staff are themselves “skeptical” about coming up with a plan, Brown said. And any action on a uniform fiduciary standard by the SEC will have to wait for a new administration and a new chairman.
That ongoing delay could give the securities industry a chance to push again for a uniform fiduciary standard, essentially imposing the costly Finra rule book on advisors, Brown said. “I would keep my eye out for that.”
Meanwhile, it’s possible the SEC could move forward on a new advisor exam program.
“We know a rule has been drafted [by the SEC] to authorize third-party examiners,” Brown said. Putting the plan out for comment this year could start the ball rolling, he added.
But details would have to be worked out. What would the exam standards be? How would examiners qualify? What would the scope of exams be?
“It’s going to be a long process” before any advisor exam rule goes into effect, Townsend said.
It’s possible the agency could propose something this year, “but we’re looking at multiple years before” an exam scheme could be implemented, Townsend said.