Appeals Court Strikes Down DOL’s Rule Regarding the ‘Fiduciary Standard.’ Christopher Cooke’s Reaction, as Seen on Financial Times Magazine

Posted by Rita Raagas De Ramos on March 28, 2018 at FinancialAdvisorIQ.com.

The Financial Times Top 400 broker-dealer advisors’ reactions range from business as usual to supporting a uniform fiduciary rule by the SEC.

This is a reaction to The Fifth Circuit Court of Appeals ordering of the Department of Labor to vacate the fiduciary rule. The Securities and Exchange Commission is forging ahead with its own best interest standard.

Hear Chris Cooke’s thoughts at 2:34.

Transcript Highlight

CHRISTOPHER COOKE, PARTNER AND SENIOR INSTITUTIONAL CONSULTANT, COOKE FINANCIAL GROUP (NOYES): Speaking as a former law student, and I guess an attorney who never practiced, I would love to be a part of these court hearings and hear what different judges and different attorneys for each side have to say. But I think that the ruling that vacated the DOL rule was a split decision. By definition, we have some disagreement on what is happening.

At the end of the day, I’m not sure it matters. And the reason I say I’m not sure it matters is the heart and the guts of the Department of Labor rule is to do the right thing for the client. We have always believed in our practice in doing the best thing for the client. I believe over many, many years, that’s why we’ve been successful and grown. I believe the top advisors in the country broadly all do the right thing for the clients. The heart of this rule is going to be implemented because it’s the right thing to do.

Now, how it gets implemented is what we’re debating today. Will it be the Supreme Court reversing this Appeals Court, will it be a new rule from the SEC, or will it just be the evolution of the business? But the heart of the DOL rule is coming, and for those of us who’ve practiced, or have been in business and practiced for many years, it’s a good thing. It’s what we should be doing.

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