Industry officials are debating whether a new memo sent by the Trump administration’s Office of Management and Budget to independent agencies setting out how to comply with the Congressional Review Act when issuing rules will impact the timing of the SEC’s upcoming advice standards package.
Bob Plaze, former co-director of the SEC’s Division of Investment Management, who’s now a partner at Proskauer Rose in Washington, told ThinkAdvisor on Tuesday that the timing of the OMB’s April 11 memo and the upcoming release of the SEC’s advice standards package, including the controversial Regulation Best Interest, may just be coincidental.
The OMB memo seems to be “part of an effort to impose greater political control on independent agencies, which happens from time to time,” Plaze said.
The OMB’s role is to determine whether a rule is “major” or not, with major ones being those deemed to have an annual effect on the economy of $100 million or more.
“There’s no doubt that the advice standards package will be a major rule,” Plaze said.
Barbara Roper, director of investor protection for the Consumer Federation of America, told ThinkAdvisor that “if OMB wanted to slow it [the advice-standards package] down, it would appear this [memo] would give it the means to do so. But I don’t see any reason that they [OMB] want to slow this [SEC rule] down.”