Barbara Roper, director of investor protection for the Consumer Federation of America, agrees, noting that while it's “encouraging” that further efforts on a fiduciary rule are on the agency's agenda, “unless the Republican [commissioners] are prepared to drop their opposition,” to a fiduciary rule “it's going to take a third Democratic vote to finalize a rule.”

Indeed, there was disagreement among the SEC Commissioners this year on “which questions to even ask in a preliminary cost-analysis review to submit for public comment prior to agreeing on an actual proposal,” adds Duane Thompson, senior policy analyst at fi360. “Complicating things even more is the likelihood of a 2-2 deadlock on many issues before the Commission, including the fiduciary study, at least until a nomination is submitted by the Obama Administration to fill the open Commission slot” after Schapiro resigns.

The same question exists with respect to other “harmonization” issues, Tittsworth adds. Section 913 of Dodd-Frank “authorized the SEC to conduct rulemakings on various aspects of disclosure as well as 'rules prohibiting or restricting certain sales practices, conflicts of interest, and compensation schemes for brokers, dealers, and investment advisers that the Commission deems contrary to the public interest and the protection of investors.'”

The report's “Looking Forward” section also states that the SEC's Division of Investment Management will hire additional examiners next year to oversee funds and advisers, if the money is available. These examiners, the report states, “would increase investor protection by supplementing and coordinating with other examination efforts. They would also bring skills and specialized experience to examinations of funds and investment advisers.” In addition, the examiners' specialized skills are “expected to directly inform and support and improve policies and rulemakings that address industry practices observed during exams.”

The exam function, the division says, “will be part of a larger Office of Risk and Examination Group, which will also conduct rigorous quantitative and qualitative financial analysis of the investment management industry to assist the Commission and the Division in carrying out their missions.”

Along with other Dodd-Frank and Jumpstart Our Business Startups (JOBS) Act rulemakings, the report also states the agency will finalize rules that disqualify securities offerings involving certain “felons and other 'bad actors'” from relying on the safe harbor from Securities Act registration provided by Rule 506 of Regulation D.

The SEC says that it will engage in rulemaking to implement the JOBS Act's provisions, including modifying the prohibition against general solicitation and general advertising in Rule 506 of Regulation D and Rule 144A under the Securities Act, and implementing exemptions under the Securities Act for “crowdfunding” offerings and unregistered public offerings of up to $50 million.

This article was originally posted at AdvisorOne.com, a sister site of Credit Union Times.