Richard Ketchum, chairman and CEO of the Financial Industry Regulatory Authority, cited concerns Friday with the Department of Labor’s fiduciary redraft, and reiterated his stance that the Securities and Exchange Commission should lead the effort to create a uniform fiduciary standard.
Ketchum, testifying before the House Financial Services Capital Markets Subcommittee during a hearing on FINRA oversight, also said that FINRA should work with the SEC on a uniform fiduciary standard.
The self-regulator’s CEO also said that FINRA’s controversial Comprehensive Automated Risk Data System proposal, or CARDS, remains under review, and will not move forward until all the security concerns are addressed.
When questioned during his testimony about DOL moving forward with its fiduciary redraft, Ketchum stated that he believes “there should be a best interest standard and the SEC should lead it.” He added that it’s also important to “look at where we can improve disclosure and the handling of conflicts.”
Said Ketchum: “I believe the right way to move forward is to have the Commission look at the possibility of a balanced fiduciary standard across all products, and I regret the possibility of having different standards in regard to the Labor Department proposal.”
Ketchum told reporters after his testimony that FINRA has talked with DOL regarding its fiduciary redraft and that FINRA is “thinking” about sending a comment letter to DOL.