The Fiduciary Rule’s Little Brother is Growing
There was always going to be a big push back against the delay/slow death of the current fiduciary rule. Lawsuits will abound, politicking will happen, but something new-some call it the fiduciary rule's little brother-is now emerging. That little brother is how industry bodies who set standards may be coming together to form a de facto fiduciary rule despite the federal government backing away from it. For instance, the National Association of Insurance Commissioners is now working on new guidelines for members that would put a "best interest standard of care" in its guidelines. The NAIC changes could mean state regulators across the country adopt the same fiduciary standard.
FINSUM : There seem to be quite a few states pushing for a fiduciary standard, and in a worst case scenario, each of them might develop their own slight variations of the rule, leading to a compliance nightmare.
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