SEC sets date for Reg BI, but will it mollify critics’ concerns?
May 29, 2019 by Andrew Welsch
The SEC and Department of Labor are moving closer to resetting the rules governing how advisors and brokers serve their clients.
The commission will vote June 5 on its proposed Regulation Best Interest, according to a regulatory notice issued by the SEC. It’ll be an opportunity to see whether the SEC, which has received a lot of public and industry feedback, has significantly amended any aspects of its contested plan to update standards of conduct for advisors and brokers.
Consumer advocates have criticized the commission’s proposal for falling short of a fiduciary standard. Wall Street trade groups and brokerage firms, meanwhile, have given the proposed regulation a warmer reception than they gave the Department of Labor’s 2016 fiduciary rule, which would have required brokers and advisors to put clients interests first when providing investment recommendations on retirement assets.