05.17.22
SEC May Issue Further Guidance on Reg BI Compliance, Gensler Says
by: Tracey Longo
The U.S. Securities and Exchange Commission (SEC) is considering issuing three bulletins that would detail agency expectations regarding Regulation Best Interest (Reg BI), SEC Chair Gary Gensler said at the North American Securities Administrators Association conference Tuesday. The guidance would take a deeper dive into how SEC staff expects registered investment advisors and broker-dealers to handle Reg BI’s requirements in the areas of mitigating conflicts of interests, the consideration of reasonably available investment alternatives and the analysis of risks and costs. “These words matter to investors," Gensler said. "They should have meaning for brokers and advisors as well. Thus, I’ve asked our divisions of investment management, trading and markets, examinations and enforcement to help ensure that investment professionals live up to these obligations.”
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