News | 09.10.19
Seven States Sue SEC on Concern Broker Rule Is Weak
New York, California, Connecticut, Delaware, Maine, New Mexico, Oregon and the District of Columbia asked a federal court on Monday to invalidate the SEC's Regulation Best Interest. The states argue the SEC exceeded its authority to craft the rule by taking an approach that deviates from a model authorized by the Dodd-Frank financial reform law. Dodd-Frank said brokers could be required to follow the same standard of conduct that applies to investment advisors. The SEC wound up not requiring brokers to follow the stricter standard. “With this rule, the SEC is choosing Wall Street over Main Street,” New York Attorney General Letitia James said.
Read the full article on Wall Street Journal