The Dodd-Frank Act was signed into law by President Obama one year ago this
Thursday, but there’s no more clarity about the legislation’s impact on the industry than a year ago. The fiduciary standard is still up in the air, and firms are still bracing for the uncertainty that lies ahead, as if they don’t have enough to worry about.
Dale Brown, president and CEO of the Financial Services Institute, an advocacy group for independent broker/dealers, put the industry’s frustration more eloquently today in a statement:
For the last year, FSI has urged the implementation of Dodd-Frank in a way that preserves investor choice and investor access. We have urged regulators to take a thoughtful approach that avoids unintended consequences and moves us toward our goal of harmonized, effective regulation. Unfortunately, we are no closer to that goal than we were a year ago. A harmonized, effective regulatory environment still eludes us. A big first step toward that goal would be the adoption of a uniform fiduciary standard of care and the creation of a self-regulatory organization for investment advisors. These important steps would create a win-win for consumers and the industry.
And banks are in the same boat. Now the Republican House is working on changing parts of the law, according to several publications.
We often ask IBD execs who visit our offices how Dodd-Frank will impact their industry and their businesses. And pretty much every time, we get a confused look. “We really don’t know what the impact will be,” they usually say.
Once the verdict's out, you’ll be the first to know.