SEC: Only Registered Advisors Can Call Themselves ‘Advisors’
April 29, 2020 by Alex Padalka
The SEC has clarified that under Regulation Best Interest it will not tolerate broker-dealers calling themselves “advisors” unless they’re registered as investment advisors, except in certain cases.
In an update to its FAQ for Reg BI, the SEC says that broker-dealers who use the terms “adviser” or “advisor” in their titles or their firms’ names without being registered as investment advisors will be in violation of the rule’s disclosure obligation. Reg Bi’s compliance deadline remains June 30 despite the Covid-19 pandemic.