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Jeff Holik Published in Law360: A Fiduciary Standard For Brokerage Firms May Be Inevitable

July 1, 2015

“A Fiduciary Standard For Brokerage Firms May Be Inevitable,” an article written by Jeff Holik of Shulman Rogers’ Financial Regulatory and Compliance Practice Group, along with Emily Gordy and Renee Kramer, was published by Law360 on July 1, 2015.

The article discusses recent developments in the longstanding debate about whether the Department of Labor should impose a fiduciary standard of care on retail brokerage firms and warns that the DOL appears poised to do so.  It suggests that brokerage firms with substantial IRA business begin preparing compliance strategies now because current service models will be impacted dramatically by new and tougher standards.

Holik advises broker-dealers “not to give in to the ‘wait and see’ temptation. We don’t have a crystal ball but as broker-dealer practitioners with long experience reading the regulatory signs, we believe the day is fast approaching where, as a matter of government policy and by popular demand, brokerage firms will be required to act in customers’ best interests when advising them about investments, especially their retirement savings.”

Click here to view the full article.