Regulatory Outlook | 07.07.20
State Regulators Propose Their Own Reg BI Rules
State securities regulators have proposed a new model law that in effect creates a state-by-state version of the SEC's Regulation Best Interest. The rules call for a code of ethics that aligns closely with SEC rules, including those that “enhance investment advisors' abilities to fulfill their fiduciary duties to clients,” the North American Securities Administrators Association (NASAA) said in their new proposal. Broker-dealers with registered investment advisories (RIAs), as well as RIAs themselves, that do business in multiple states will need to customize their compliance practices to each state's specific regulations, NASAA said. Advisors and their firms will not be able to rely on their Reg BI materials or any cookie cutter compliance plans. Comments on the proposal are due by August 1.
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