Regulatory Outlook | 10.28.20
Reg BI Compliance Being Met Despite Growing Pains, Regulators Say
Nearly four months after the SEC's Regulation Best Interest (Reg BI) and Form CRS went into effect, firms are mostly meeting their obligations, but issues persist, SEC and FINRA staffers said Monday at a virtual roundtable hosted by the SEC. "Generally, we have seen firms do a decent job implementing procedures and processes," said Bill St. Louis, senior vice president for member supervision at FINRA. "For the most part, firms that were actively preparing for [the] DOL [fiduciary rule] were well positioned to leverage that work for their BI and CRS procedures and processes." John Polise, associate director of the SEC's office of compliance inspections and examinations' broker-dealer and exchange examination program, said his office is seeing firms still gear their policies and procedures toward FINRA's suitability rule, the standard to which broker-dealers were previously held.
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