The Securities and Exchange Commission (SEC) is speeding up the process to write a uniform fiduciary standard regulation according to Chair of the U.S. House Financial Services Committee, Rep. Spencer Bachus (R-Alabama). The Dodd-Frank Act requires the SEC to study the need for a uniform fiduciary standard before writing new fiduciary standard regulations. Bachus also said that it “authorizes but does not require the SEC to promulgate rules that would apply the same standards to broker-dealers as to investment advisors,” and expressed concern that “the economic analysis has not been done to justify the SEC moving forward on a proposed fiduciary rule.”

Traditionally, a fiduciary standard has applied to investment advisors. A suitability standard - which requires the seller to verify that a product suits the buyer’s needs - applies to broker-dealers and their representatives, including many life insurance agents who have the licenses to sell variable annuities and variable life insurance.