Perez indicates Labor won't extend comment period for fiduciary proposal | Raymond James CEO raises concerns about Labor fiduciary proposal | 1978 agreement allows Labor's purview to include IRAs
April 24, 2015
SIFMA SmartBrief
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Morning Bell
Perez indicates Labor won't extend comment period for fiduciary proposal
Biden Swears In Thomas Perez As Labor Secretary
Perez (Chip Somodevilla/Getty Images)
The Department of Labor Secretary Thomas Perez indicated that the comment period for a proposed fiduciary standard for financial professionals who give retirement advice won't be extended. "The comment period is 75 days, followed by a public hearing and publication of the transcript, followed by another opportunity to comment on it; that's all in the aftermath of 18 months of informal outreach," he said. "That's a long time that we've provided, and we'll make sure we've heard people's voices." Read SIFMA's letter about the comment period. ThinkAdvisor (4/23)
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Raymond James CEO raises concerns about Labor fiduciary proposal
Paul Reilly, CEO of Raymond James Financial, is raising concerns about a proposal from the Department of Labor that would require financial professionals, including brokers, who offer advice on retirement plans to adhere to a fiduciary standard. "Honestly, I believe [the proposal] will leave millions of people without the advice they're getting today," Reilly said. Reuters (4/23)
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1978 agreement allows Labor's purview to include IRAs
The Treasury and Labor departments reached an agreement in 1978 giving Labor the jurisdiction to define fiduciaries for workplace retirement accounts. Lisa Bleier, an associate general counsel at SIFMA, said the group recognizes "the jurisdiction that the Department of Labor has," but says the association would prefer that the Securities and Exchange Commission determine the standards for both retirement and other accounts. The Wall Street Journal (tiered subscription model)/Total Return blog (4/23)
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Why Success Is Less About Your Business and More About Aging Well
Do you have the qualities needed to age successfully? These 5 improvements may help the second half of your life be a smashing success. Read the featured article.

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Nasdaq closes at record high
The Nasdaq Composite hit a record high Thursday, closing at 5,056.06 and topping a record set in 2000 right before the dot-com crash. Reuters (4/23)
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NASDAQ CEO encourages exchanges to seek out abusive trading
Nasdaq OMX Group CEO Robert Greifeld says exchange operators should be paranoid in putting up shields against disreputable traders. "Our view is you have to assume there's a trader sitting in some house in London or Singapore or Podunk, Iowa, trying to do bad things in the market. We have to build our defenses and infrastructure around that perspective," Greifeld said. "We need to be paranoid.” Reuters (4/23), The Wall Street Journal (tiered subscription model) (4/23)
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Judge sides with Barclays in assets dispute with Lehman
Barclays has a right to billions of dollars in cash and collateral in a dispute with Lehman Brothers over margin assets, a federal judge has ruled. The decision by Judge Katherine Forrest rejects an effort by Lehman to separate $1.3 billion from a previous $4 billion court award. The Wall Street Journal (tiered subscription model) (4/23)
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6 Best Practices to Continuous Planning Success
Whether you call it 'forecasting' or 'planning', the key is to enable a continuous process that delivers real-time, up-to-date information to drive effective business decisions. Download this whitepaper to learn how you can bring everyone in your organization into your planning process.

Washington Roundup
CFTC adjusts SEF rules
The Commodity Futures Trading Commission is adjusting rules to promote more efficient trading on swap-execution facilities and make it easier for the venues to become fully registered with the agency. The changes, detailed by Commodity Futures Trading Commission Chairman Timothy Massad at an industry conference, include a streamlined process to fix erroneous trades. The Wall Street Journal (tiered subscription model) (4/23)
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Supporters of cybersecurity legislation look to Senate
This week, the House approved a couple of cybersecurity bills, shifting supporters' focus to the Senate. The starting texts for cybersecurity legislation are similar in the House and Senate, observers say. "They are definitely not worlds apart," said SIFMA's Karl Schimmeck. (subscription required) (4/23)
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CFTC chief to look at rules, exchanges in wake of arrest
Senate Banking Committee Holds Hearing On Wall Street Reform
Massad (Alex Wong/Getty Images)
The Commodity Futures Trading Commission is examining its rules and the workings of exchanges such as CME Group that handled transactions cited in "flash crash" allegations against Navinder Sarao, CFTC Chairman Timothy Massad said. He said he would like "to be in the position to do more," but the CFTC doesn't have the resources to examine message data. CME is facing increased scrutiny as it has emerged that the exchange operator identified in 2009 that Sarao had initiated a high volume of orders that were subsequently canceled. Bloomberg (4/23), Financial Times (tiered subscription model) (4/23)
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Libor case results in record fine, guilty plea for Deutsche Bank
Deutsche Bank's London unit will plead guilty to wire fraud for manipulating the London Interbank Offered Rate as part of a deal with the U.S. Justice Department, authorities say. Germany's largest bank will pay U.K. and U.S. authorities $2.5 billion, the biggest penalty in a seven-year investigation of benchmark-rate manipulation. The bank must also terminate employees involved. BBC (4/23), Reuters (4/23), The Independent (London) (tiered subscription model) (4/23)
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Announcing the 2015 SIFMA-TCH Prudential Bank Regulation Conference: June 9, Washington, D.C.
This year will mark the fifth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which introduced rules to enhance prudential supervision of financial institutions and improve oversight of the entire financial system. The SIFMA-TCH Prudential Bank Regulation Conference will bring together leading industry experts from regulatory agencies, banks and prominent academic institutions to examine the progress made, role of regulation in today's banking system, and how changes have affected U.S. and European capital markets. CLE credits will be available.
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New EY study on corporate dividend and capital gains taxation: A comparison of the U.S. to other developed nations
A new study by Ernst & Young finds that for 2014, the top U.S. integrated tax rate on corporate profits, which combines corporate-level taxes with investor-level taxes on dividends and capital gains, are among the highest of developed nations. The top U.S. integrated tax rate has increased over the past several years due to the new 3.8% tax on investment income enacted under the 2010 health insurance reform and the increase in the top federal tax rate on dividends and capital gains from 15% to 20% beginning in 2013. The top integrated tax rate has fallen in many other countries. “The United States has among the highest capital gains and dividend tax rates in the developed world, second only to France. ... In order for the United States to compete in the global market for capital investment, to promote economic growth and support high-paying jobs, our tax laws need to be competitive; this is one reason why tax reform is essential to our future prosperity,” said Payson Peabody, Managing Director & Tax Counsel for SIFMA, on behalf of the Alliance for Savings & Investment. Ernst & Young prepared the study for the Alliance for Savings & Investment, a coalition of which SIFMA is a member.
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Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even."
-- Muhammad Ali,
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