03.15.19
House Democrats Call on SEC to Strengthen Regulation Best Interest
by: Mark, Jr. Schoeff
House Democrats are calling on the SEC to strengthen its investment advice reform proposal. In the first hearing about the measure since the party took over the House in last year's elections, Rep. Carolyn Maloney (D-NY) said the SEC's Regulation Best Interest falls short of needed investor protections. While the proposal may be "an improvement on the status quo, it is still far too weak," Maloney, chairwoman of the House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets, said at a meeting of the panel Thursday. Unlike the now-defunct Labor Department fiduciary rule, Maloney asserted the SEC proposal relies too much on disclosure of conflicts of interest rather than their elimination. Rep. Sean Casten (D-IL) indicated at the hearing he is working on a bill that would require the agency to conduct usability tests regarding disclosures to retail investors. Related coverage: Politico Pro
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