08.10.18
Indie BDs Warn SEC of Major Flaw in Conduct Rules
by: Melanie Waddell
Independent broker-dealers are urging the SEC to revise its Regulation Best Interest proposal so as not to repeat mistakes made in the Labor Department fiduciary rule. “Our largest concern [with the proposal] is the preamble,” the American Securities Association (ASA) told the SEC in its comment letter. “The preamble language plainly rejects the principles-based approach set forth in the proposed rule text and adopts a prescriptive approach that was based on Labor’s fiduciary rule,” which has been overturned, the group wrote. Adopting a principles-based approach “is the best course of action ... and we think that is what the commission intended to achieve based on the proposed rule text.”
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