SEC’s Regulation Best Interest Comes Under Attack
September 25, 2019 by Melanie Waddell
The Securities and Exchange Commission’s Regulation Best Interest came under legal assault in early September when two separate lawsuits were filed challenging the rule’s validity. More challenges are likely on the way, at least one attorney predicts.
Seven states along with the District of Columbia filed a suit in the Southern District of New York on Sept. 10 against Reg BI for failing to institute a uniform fiduciary standard and “meet basic investor protections” that were laid out in the Dodd-Frank Act.
The same day, XY Planning Network (XYPN), co-founded by well-known industry planner and blogger Michael Kitces, also filed a lawsuit challenging broker-dealers’ ability to deliver comprehensive financial planning services under the rule.