Subject: Standards of Trust
From: Neal Shikes

June 6, 2017

Mr. Clayton:


Included in your above referenced Public Statement is:

You welcome "the Department of Labor's invitation to engage constructively as the Commission moves forward with its [own] examination of the standards of conduct applicable to investment advisers and broker-dealers, and related matters.”

Conduct is the visible manner in which a person behaves. To fulfill Fiduciary Duties, there must be visible behaviors of conduct and methodologies that improve the likelihood that the client's/participant's objectives are met.

Enhancing disclosures and contracts are outcomes that result from parties protecting their own interests. This is the antithesis of Fiduciary Law where a person owes a duty of loyalty in an ethical relationship of trust to another party.

If there is to be an engaging dialogue with the DOL, The Financial Services Industry, and the Legal Profession you ought to focus on the lack of comprehension. Understanding what it means to be a fiduciary must be prerequisite to complying with the law. This is the lesson that should have been learned since ERISA of 1974 materialized evidenced by how creative The Financial Service Industry became in an effort to avoid it.

If in fact "the SEC strives to promote a market environment that is worthy of the public's trust" you may want to help all parties understand what trust means in a Fiduciary Relationship.



Neal Shikes
The "Trusted & Willing" Fiduciary