Dodd and Frank Say SEC’s Reg BI Violates Law
January 8, 2020 by Melanie Waddell
The Securities and Exchange Commission’s Regulation Best Interest violates Section 913 of the Dodd-Frank Act, which directed the commission to “harmonize” the standards of conduct for broker-dealers and investment advisors through a fiduciary rule, current and former Democratic lawmakers, including the law’s authors, told the U.S. Court of Appeals for the 2nd Circuit.
Congress’ mandate in Section 913 of Dodd-Frank “required that any rule promulgated to address the inconsistent standards of care between investment advisers and broker-dealers must harmonize those standards of care,” the lawmakers, which include former Rep. Barney Frank and former Sen. Chris Dodd, said in their amicus brief supporting XY Planning Network’s lawsuit against Reg BI. “The rule therefore cannot stand.”