Can the SEC and DOL sing in harmony?

In the coming months, both the SEC and DOL are expected to begin issuing a number of new rules and proposals as part of their “harmonization” efforts. (Photo: Diego M. Radzinschi/ALM Media)

“Harmonization” is the buzzword that we keep hearing from regulators of the retail advice space.  The SEC used the word in the title of its recent concept release on private securities offering exemptions.  DOL Assistant Secretary Preston Rutledge used the same word in recent comments on the SEC’s Reg BI by stating that DOL’s goal is to “align, build up, and harmonize with [the SEC’s agenda].”  In the coming months, both the SEC and DOL are expected to begin issuing a number of new rules and proposals as these “harmonization” efforts come into daylight.  Key areas of focus may include rollover recommendations, electronic disclosure, and permissible investments.

First, rollover recommendations have in the past been and remain a key focal point for the SEC and DOL.  At times, it has seemed as though the two agencies have both sought to be the primary regulator.