Securities and Exchange Commission (SEC)

Financial advisers may be forced to look out for clients again

block that says fidiciary duty
Photo: Getty Images

The Obama-era rule that financial advisers must give advice in the best interest of their clients rather steering them toward products that pay kickbacks to the adviser will return — at least in some form. It died in court last year after the Trump administration declined to defend it. But in a congressional hearing last week, Labor Secretary Alexander Acosta said the agency plans to revive it.

Why it matters: Since the rule was rescinded in June 2018, "[s]ales of potentially questionable investment products have soared, and retirees stand to end up billions of dollars poorer," says Ethan Schwartz, an investment manager who worked in the Clinton administration Treasury Department, in an editorial for Bloomberg.

Why Lyft and WeWork filed for IPOs last year

Illustration of smiling unicorn with hundred dollar bills on horn.
Illustration: Sarah Grillo/Axios

Earlier this week we marveled at how news of WeWork's confidential IPO filing hadn't leaked, despite having submitted it last December. We also should have noted the import of that particular month, since it was the last opportunity for WeWork to be considered an "emerging growth company."

The bottom line: Companies with less than $1.07 billion in revenue for their most recently-completed calendar year qualify for certain benefits that make the IPO process easier.