In a recent comment letter to the Department of Labor (DOL), SEC Commissioner Daniel Gallagher, stated that the recent proposal by DOL, in creating a fiduciary rule for broker-dealers, is at best, unworkable and should be withdrawn. Instead, according to the Commissioner, DOL should work with the SEC to find a reasonable way to address the fiduciary responsibilities of a broker-dealer.
Reportedly, the relationship between the two agencies is not always conducive to finding common ground in policy making. Also, the SEC is apparently working on its own fiduciary proposal for broker-dealers. Commissioner Gallagher believes that the DOL needs to lean on the SEC’s expertise in this area and not create a DOL rule that would not be workable for broker-dealers and their clients.