This bill prohibits the Secretary of Labor from prescribing any regulation under the Employee Retirement Income Security Act of 1974 (ERISA) defining the circumstances under which an individual shall be considered a fiduciary until 60 days after the Securities and Exchange Commission (SEC) issues a final rule governing standards of conduct for brokers and dealers under specified law.

The Securities Exchange Act of 1934 is amended to prohibit the SEC from promulgating a rule establishing an investment adviser standard of conduct as the standard of conduct of brokers and dealers before it reports to certain congressional committees whether:

• retail investors and other customers are being harmed by brokers or dealers operating under different standards of conduct than those applicable to investment advisers under the Investment Advisers Act of 1940;
• alternative remedies will reduce any confusion or harm to retail investors due to brokers or dealers operating under such different standards of conduct;
• adoption of a uniform fiduciary standard of conduct for brokers, dealers, and investment advisers would adversely impact their commissions and the availability of proprietary products offered by brokers and dealers, as well as the ability of brokers and dealers to engage in principal transactions with customers; and
• adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisers would adversely impact retail investor access to personalized, cost-effective investment advice and recommendations.

The SEC shall: (1) publish in the Federal Register formal findings that such rule would reduce retail customer confusion or harm due to different standards of conduct applicable to brokers, dealers, and investment advisers; and (2) consider, when proposing rules, the differences in the registration, supervision, and examination requirements applicable to brokers, dealers, and investment advisers.