Financial rule proposal gets SEC extension

At the behest of industry lobbyists, the Securities and Exchange Commission has extended the comment period on a…

At the behest of industry lobbyists, the Securities and Exchange Commission has extended the comment period on a financial responsibility rule proposal to June 18 from last Friday.
The 153-page proposal contains changes on the handling of customer assets and credits, cash sweeps, net capital rules and the use of banks for reserve deposits.
The action follows a letter sent this month to the SEC by the Securities Industry and Financial Markets Association of New York and Washington. SIFMA asked that the comment period be extended by 30 days due to “the complexity of the issues involved and the significance of the potential impact” on brokerage firms.

Study: Trust boosts 401(k) participation
Trust in financial institutions and financial literacy increase 401(k) participation rates, a study by the Center for Retirement Research at Boston College in Newton, Mass., has found.
“Trust appears to be very important in influencing savings behavior in automatic enrollment plans, with participants more likely to opt out if they lack a fundamental trust of financial institutions,” the study said.
The study also found that financial literacy reduces the proportion of non-joiners in voluntary 401(k) plans and the proportion of quitters in automatic enrollment plans.

FPA yet to weigh in on SEC’s request
The Financial Planning Association on Friday had yet to decide whether to oppose a motion by the Securities and Exchange Commission that would give the brokerage industry until Oct. 1 to transition fee-based brokerage assets into alternative accounts, said Merril Hirsh, an attorney with Ross Dixon & Bell LLP in Washington, which represents the FPA.
The SEC asked the U.S. Court of Appeals for the District of Columbia Circuit to delay implementation, scheduled for today, of its order vacating the agency’s
broker-dealer exemption rule.