News | 12.06.18
Best the SEC Can Do or Huge Step Backward? Industry Leaders Tussle Over Advice Reform
While the SEC's proposal to raise investment advice standards for brokers does not represent a major change from current regulations, it is about as far as the agency can go right now, according to Dale Brown, president and chief executive of the Financial Services Institute. Brown said Wednesday that the centerpiece of the SEC proposal, the so-called Regulation Best Interest — which would require brokers to act in the best interests of their clients — would make a modest impact. "Is Reg BI as proposed a substantial improvement over the current suitability standard? No. It's not," Brown said. "I think it's probably what Chairman Jay Clayton feels that he can get at least two other … commissioners on the SEC to agree to." The SEC has taken the lead from the Department of Labor on setting a new advice standard after the DOL's fiduciary rule died in court earlier this year.
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