The biggest story from last week in regards to regulatory reform is the news that Senate Banking Committee Chairman Christopher Dodd (D-Conn.) is retiring at the end of his current term. As one of the architects of the Senate's financial regulatory reform bill, this has raised a number of questions about the affect his lame duck status will have on the legislation, which still has a ways to go before becoming law. Without reelection to worry about, he is certainly more free to act without regard to his political future. The question now is, which direction does that free him to move towards?
One sentiment says that he will seek to reward longtime supporters of his from the hedge fund and insurance company industries by influencing legislation to be more friendly to their interests. Another says that his influence is diminished by his decision and that makes consumer-friendly reform less likely. However, the most optimistic theory is that, freed from outside influence, Dodd will be able to concentrate even harder on pushing a bill that is for the best interests of investors, including a stricter fiduciary standard. We can't think of a better parting gift he could leave as his lasting legacy.
Now on to the rest of the best links from the last week.
In the news/commentary:
- Fred Reish looks at the fiduciary's duty to remove investments [PlanSponsor]
- InvestmentNews weighs the winners and losers of Dodd's retirement [InvestmentNews]
- Proposed legislation would make QDIA manager's act as fiduciaries [InvestmentNews]
- Kristina appears on a podcast addressing fiduciary duties for brokers under regulatory reform [Employee Benefit Adviser]
- Daily Finance has two stories of similar cases of John Hancock and Merrill Lynch arguing in court they are not fiduciaries despite marketing that suggests otherwise [Daily Finance]
- Some firms already preparing for a fiduciary future [Wall Street Journal]
- If InvestmentNews' 2010 Outlook comes to fruition, this will be a very good year for fiduciary standards. Make sure to check out the slideshow. [InvestmentNews]
- An article from two of our AIFA designees helps prepare plan sponsors for DoL examinations [PlanSponsor]
From the organizations/associations/government/academia:
- A new poll of nonprofit investment committees places liquidity issues and defining fiduciary roles among highest priorities for 2010 [SEI Institutions]
From the blogs:
- Do the events of the '00s mean an end to passive investing? [Fiduciary News]
Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.
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