Don’t Sleep on Reg BI Compliance, Industry Officials Warn
January 29, 2020 by Melanie Waddell
Industry officials are warning advisors and broker-dealers not to dawdle on compliance with the Securities and Exchange Commission’s Regulation Best Interest and advice-standards package, with one compliance firm stating that the consequences for noncompliance are “heavy.”
Top of mind for advisors and broker-dealers is whether they “need to race to comply” with Reg BI if the rule is going to suffer the same fact as the now-defunct Labor Department fiduciary rule, according to Blaine Aikin, executive chairman at Fi360, a fiduciary education, training and technology company.
Despite legal challenges, however, advisors and broker-dealers “don’t have much choice” but to comply with Reg BI’s June 30 compliance date, Aikin said during a recent Fi360 webinar.
Aikin, along with Duane Thompson, Fi360’s senior policy analyst, agreed that as with the vacated Labor rule, “you have to assume the deadline will take effect when the agency said it would.”