Schwab CEO: Consistency Needed In Fiduciary Rules

WASHINGTON— The president of Charles Schwab said it would be best for the securities industry if the Securities and Exchange Commission (SEC) took its cue on imposing a new fiduciary standard from the Department of Labor’s (DOL) proposal.

Walter Bettinger II, president and CEO of Charles Schwab, made his comments at last week’s Investment Company Institute (ICI) conference.

Bettinger said it would be better for the industry to have one set of rules, regardless of who leads or who “goes first,” a Schwab spokesman told InsuranceNewsNet.

“He simply stated that if the DOL does go first, it would be better if the SEC just followed in a consistent manner so we don’t end with two sets of rules, one for taxable accounts and the other for retirement accounts,” Glen Mathison said, in clarifying what Bettinger’s remarks.

Mathison also said that Bettinger cautioned that the securities industry “should be careful about falling into the trap of appearing to be trying to stall versus offering up productive alternative ways to improving the rule.”

Bettinger did not “express the view” at the ICI conference “that it would be better for the DOL to go first,” Mathison said.

Mathison explained that Bettinger was commenting on the problems Schwab would have in dealing with two sets of rules relating to customers, as well as the customer confusion that would be created by having two sets of rules.

InsuranceNewsNet Washington Bureau Chief Arthur D. Postal has covered regulatory and legislative issues for more than 30 years. He can be reached at arthur.postal@innfeedback.com.

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InsuranceNewsNet Washington Bureau Chief Arthur D. Postal has covered regulatory and legislative issues for more than 30 years. He can be reached at arthur.postal@innfeedback.com.