End Game to the Fiduciary Issue?
By Bob Clark
Okay, so I may have been a bit overly optimistic with my assessment of the Johnson amendment (February 22, 2010 blog). But it happens so rarely these days, I have to admit, it felt kind of good. But reality has reared its head to bite me on the keister, and things aren’t looking nearly as good for the fiduciary standard this week as they were last week.
For those you who might have missed it, what with all the lollapalooza about the Olympics, the healthcare summit, and Tiger Wood’s press conference, the fiduciary duty for brokers has been dropped from financial services re-regulation. It seems that the amendment introduced two weeks ago by Sen. Tim Johnson (D-South Dakota)–which would replacing a fiduciary standard now in the legislation with a study of the practicality of such a standard–has been added to the Senate version of the reform bill. That means neither the House nor the Senate versions of financial services re-regulation contains any change in the current fiduciary status quo.