Reg BI Readiness Questioned on All Fronts: SEC Commissioners, Trade Groups, Legislators
April 2, 2019 by Melanie Waddell
The Securities and Exchange Commission’s Regulation Best Interest continues to grab headlines as two SEC commissioners recently made candid comments about the three-pronged advice-standards package and House lawmakers held the first hearing on the plan. Interest in the package is reaching a fever pitch as the plan is anticipated to be finalized in late summer.
Commissioner Robert Jackson, a Democrat, said at the Investment Adviser Association’s annual compliance event in Washington in mid-March that as it stands now, he can’t support passing the controversial Reg BI, or the advice-standards package’s Customer Relationship Summary disclosure form (Form CRS), because the cost-benefit analysis performed by the SEC thus far is subpar.
The weak economic analysis, Jackson stated, will make the rule a prime target for legal challenges.
“Our economic analysis was not a serious attempt to understand the effects of the rule,” Jackson said during a question-and-answer session. “We did not make any serious attempts to understand the costs and benefits for investors” of the rulemaking, Jackson said.
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