09.09.22

SEC Exams Will Focus on Reg BI Compliance, Agency Officials Say

by: Tracey Longo

Officials with the U.S. Securities and Exchange Commission (SEC) said they expect to conduct exams to see how well the industry has adopted Regulation Best Interest. “Our exam staff has noted that examining for compliance with these standards is a priority, so we would expect a number of exams that are related to this to be coming up in the next year,” Thoreau Bartmann, assistant director of the SEC Chief Counsel’s Office, said at a Practising Law Institute conference. The SEC’s focus will be on compliance with the rule overall, as well as on the two staff bulletins the SEC has introduced in the past year. “Our hope is that these bulletins send a strong message that we take the ‘best interest’ obligation at the heart of both standards very seriously and we expect investment professionals and firms to do the same,” Emily Russell, chief counsel of the SEC Division of Trading and Markets, said at the conference.

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