News | 05.03.19
Uncertainty on Advisor Conduct Rules Raises Costs, Hurts Investors: SEC Chief
In crafting standards of conduct rules for brokers and advisors, preserving investors' choice and lowering their costs are paramount concerns, SEC Chair Jay Clayton said at ICI's General Membership Meeting. “What is clear is that one form of relationship is probably not optimal for investors,” Clayton said during a Q&A session with ICI President and CEO Paul Schott Stevens. “I looked at this [issue], it was clear that there was confusion in the marketplace; it was clear that everyone was adjusting their behavior in the face of uncertainty," said Clayton after being asked by Stevens why he “tackled” the issue right away. "And when people are adjusting their behavior in the face of uncertainty, costs go up. And our job is to give investors the best access to investment opportunities with appropriate protection, and at the least cost.” Stevens said he looked forward to seeing the final rule in the coming months. "Me, too," was Clayton's response, reports Pensions & Investments. In a discussion with reporters, InvestmentNews reports, Clayton sidestepped a question about how Regulation Best Interest would address mitigation of broker conflicts of interest. "Wait and see," Clayton said. "You won't have to wait long."
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