Michael Kitces, who’s challenging the SEC’s Regulation Best Interest in a lawsuit, hopes the rule will be overturned by the end of June.
“We’re asking the court to vacate the rule altogether,” Kitces wrote in a tweet last week. He added that a request for a delay of the rule may become necessary if the rule isn’t vacated by June 30.
“We hope the rule will already be gone by then,” Kitces wrote.
The XY Planning Network, the financial planning platform for fee-for-service financial advisors co-founded by Kitces and Alan Moore, filed suit in the Southern District of New York in September challenging the SEC’s authority to issue the rule.
According to the suit, the rule, which was implemented in June, creates an unfair advantage for broker-dealers by letting them sell financial planning services without subjecting them to RIA registration or the fiduciary duty.
The suit came days after seven state attorneys general filed a lawsuit accusing the SEC of overstepping its authority by deviating from the mandate given to it by the 2010 Dodd-Frank Act.
Critics of the SEC’s rule say it doesn’t go far enough to protect retail investors compared to the Obama-era fiduciary rule from the Department of Labor, which was vacated by an appeals court in 2018.