News | 07.11.19
SEC's Blass Rebuts Assertion Reg BI Is Tougher Than Fiduciary Standard
Dalia Blass, director of the SEC Division of Investment Management, says that Regulation Best Interest (Reg BI) has not eclipsed the fiduciary duty investment advisors must continue to meet under the new SEC regulations. "It is not true to say that the broker-dealer standard is higher than the fiduciary standard," Blass said at a Securities Industry and Financial Markets Association seminar. Some in the brokerage industry, as well as SEC commissioner Hester Peirce, have suggested that Reg BI is tougher than a fiduciary duty because it requires brokers to mitigate conflicts of interest. But Blass said investment advisors also must mitigate or eliminate conflicts in the interpretation of the advisor standard that was part of the rule package.
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