Regulatory Outlook | 10.20.20
Reg BI Promotes Same Standard of Care Across Advice Models: SEC’s Clayton
SEC Chair Jay Clayton said Monday that Regulation Best Interest (Reg BI) is ensuring that financial professionals registered as investment advisors and brokers act in their clients best interests, no matter which hat they’re wearing. “The dual-hatted investment professional — the investment advisor-broker dealer who’s now subject to [Reg BI] — is finding out that while the compensation models are different … the standard you owe your customer is very much the same,” Clayton said a the virtual Securities Industry and Financial Markets Association annual conference. “You’re seeing it in the disclosures.”
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