June 15, 2010

House Proposes Fiduciary Duty for Final Reforms Bill

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The house Financial Services Committee released proposed language for discussion by the House-Senate Committee that is finalizing Wall Street reforms legislation. It is expected that a final bill will be presented to President Obama by July 4.

The House recommends that the language in the final bill include the requirement of the fiduciary standard of conduct for brokers who provide investment advice to retail investors. The Senate's version calls for a "study" of whether brokers "should have to put investor's interests first."

The House released this recommendation to ammend the language for the final bill, replacing the Senate's text "with the House provision requiring the SEC to impose the fiduciary duty on broker-dealers providing investment advice to retail customers. (House ? 7103, p. 1276)."

The House also proposes that the Conference Committee, "Add the House provision requiring the SEC to study the need for enhanced examination and enforcement resources for investment advisers. (House ? 7107, p. 1289) "

The Conference Committee will debate these proposals Wednesday, June 16 starting at 11 am.

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