Regulatory Outlook | 04.28.21
Rollovers, Revenue Sharing Could Be in Examiners' Sights: SEC's Peirce
SEC Commissioner Hester Peirce said that “it will matter how we implement [Regulation Best Interest (Reg BI)] in terms of enforcement and examinations,” and reiterated her hope that the industry has “a chance to let it play out before we start to make changes to it.” In a virtual event held by the Insured Retirement Institute, Peirce reiterated her concerns that the Customer Relationship Summary, or Form CRS, is “too dense,” and wonders whether “in practice” it will be helpful for investors. What should firms expect from their next exam in terms of Reg BI compliance? Peirce said that it will depend on “fact and circumstances,” but noted that firms should look at, for instance, how they treat rollovers and how they disclose revenue sharing agreements.
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