WASHINGTON–Insurance agents would be required, probably within 18 months, to meet a fiduciary standard in selling investment products under a deal worked out in Congres today.
Under a compromise provision that will be part of financial services reform legislation that was approved by House and Senate negotiators today, the Securities and Exchange Commission must report back to Congress within six months on its findings of gaps in existing regulation.
After that, the agency would be allowed to launch rulemaking designed to impose a fiduciary standard on the sale of all investment products.
Knut Rostad, chairman of the Committee for the Fiduciary Standard, called the compromise language a “huge victory for investors.”
He said the Securities and Exchange Commission will now have the authority to extend the fiduciary standard to brokers rendering investment advice.