News | 06.06.19
New SEC Rule Heightens Broker Responsibilities to Investors
The SEC approved its investment advice regulation by a 3 to 1 vote along party lines. The new rules, which become enforceable in one year, will give investors more information about brokers' pay incentives. The agency did not impose a higher fiduciary duty on brokers that applies to investment advisors, whose requirements were spelled out through a separate regulatory notice issued Wednesday. While brokers will have more responsibility to act in the best interest of investors, the regulation does not spell out specific conflicts that would violate the best-interest standard. Brokers will need to write policies to reduce conflicts of interest such as supersize commissions for hitting higher sales targets.
Read the full article on Wall Street Journal