Regulatory Outlook | 06.23.20
Borzi Challenges SEC to Use Reg BI to Attack Revenue Sharing Conflicts
Phyllis Borzi, architect of the now defunct Labor Department fiduciary rule, challenged the SEC to use its new broker advice standard to target conflicts of interest related to payments from fund companies to financial advisors. “If it’s really serious about enforcing the new rule, the SEC needs to quickly and seriously ramp up its efforts to understand and regulate these conflicted revenue-sharing payments,” Borzi said on a webinar hosted by the Institute for the Fiduciary Standard. “Without seriously focusing on these newly emerging sources of conflict, the SEC will never be able to make any headway in protecting investors in a post-Reg BI world.”
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