The House and Senate conferees will resume their conference on Tuesday, June 22. Senator Christopher Dodd (D-Connecticut) has said that Senator Tim Johnson (D-South Dakota) is working on a compromise to the House’s language calling for a fiduciary duty for brokers. Johnson drafted the original language calling for an SEC study of gaps in regulation for advisors and brokers, instead of imposing a fiduciary duty on brokers, as set out in the House bill.
Rep. Barney Frank (D-Massachusetts), chairman of the House Financial Services Committee, who is chair of the conference committee, is reported as saying Wedneday during the conference process that he was optimistic a compromise position would emerge giving the SEC rulemaking authority on the fiduciary issue. One possibility is to use the Senate language calling for an SEC study, but at the end of the study to give the SEC the rulemaking authority to put brokers under a fiduciary standard. This is what SEC Chairman Mary Schapiro has been pressing for.