Responding to Dodd-Frank Section 913’s Punt: An Essay Calling for Bifurcated Fiduciary Standards Among Retail Financial Advice Providers

Abstract:     
In response to the Great Recession, Congress passed, and President Obama signed into law, the Dodd-Frank Wall Street Reform and Consumer Protection Act, in late July 2010. Dodd-Frank represented the most expansive federal securities legislation since the Great Depression, and given the timing of its passage, the first major round of scholarship on Dodd-Frank will occur during this submission cycle. Securities statutes authorize a federal agency, the Securities and Exchange Commission ("SEC") to promulgate rules and regulations implementing the law more broadly. The Essay argues that Dodd-Frank serves as a watershed moment for the SEC to create a uniform standard of fiduciary duties among all providers of consumer financial advice. In addition, the Essay uniquely calls for bifurcation of that standard, so that advice relating to newer retirement vehicles such as 401(k)s and IRAs is held at the same level of care as required by ERISA relative to traditional retiree pension plans.

Number of Pages in PDF File: 9

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