12.12.18
Clayton Says Broker-Dealer 'Best Interest' Language May Mirror Investment Advisor's Fiduciary Duty
by: Francine McKenna
SEC Chair Jay Clayton told Sen. Elizabeth Warren (D-MA) on Tuesday that the final language of the regulator's proposed “best interest” standard for broker-dealers may be the same language as the fiduciary standard for investment advisors. The exchange came after a back-and-forth between Clayton and Warren at a Senate Banking Committee hearing on oversight of the agency. Under questioning from Warren, reports InvestmentNews, Clayton said the goal of the agency's advice-reform proposal is to hold brokers to the same fundamental requirement as advisors, while keeping advisor and broker regulation separate. Warren pressed Clayton to clear up the semantics in the SEC proposal, saying the agency's own investor testing showed that customers don't understand the differences between brokers and advisors. "If it's the same, just use the same words," she said. "We may do that," he said.
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