July 7, 2015

SIFMA Proposes “Best Interests of the Customer” Standard for Broker-Dealers

On June 3, 2015, SIFMA proposed a “best interestsof the customer” standard that would apply to broker-dealers and therecommendations issued to any of their individual retail customers about anybrokerage accounts.  SIFMA’s proposal wasin response to an April 14, 2015 definition proposal by the Department of Labor(“DOL”) about who is considered a fiduciary under ERISA, and the DOL’s carve-outfrom their proposed definition for broker-dealers who service IRA accounts. SIFMA’sstandard articulates its support for a move toward a uniform “Best Interests ofthe Customer” standard for broker-dealers.

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