8 Attorneys General Sue SEC Over Reg BI
September 11, 2019 by Melanie Waddell
Eight attorneys general filed a federal lawsuit Monday in the Southern District of New York challenging the Securities and Exchange Commission’s Regulation Best Interest for failing to institute a uniform fiduciary standard and “meet basic investor protections” that were laid out in the Dodd-Frank Act.
“With this rule, the SEC is choosing Wall Street over Main Street,” said New York Attorney General Letitia James, who’s leading the coalition, in a statement. “Instead of adopting the investor protections of Dodd-Frank, this watered-down rule puts brokers first.”
The other attorneys general hail from California, Connecticut, Delaware, Maine, New Mexico, Oregon and the District of Columbia.
The SEC is “promulgating a rule that fails to address the confusion felt by consumers and fails to remedy the conflicting advice that motivated Congress to act in the first place,” James said. “Despite the SEC’s refusal to do its job, New York will continue to lead the charge to protect the millions of individuals investing in their futures, including the millions of Americans saving for retirement.”