US Appeals Court Upholds Reg BI
July 1, 2020 by Wire Reports
The 2nd U.S. Circuit Court of Appeals ruled that the Securities and Exchange Commission acted properly in developing Regulation Best Interest and that the rule was not arbitrary and capricious.
The court’s decision on Friday means that Reg BI, which establishes a new advice standard for brokers, can take effect as planned on Tuesday.
Seven states, the District of Columbia, the XY Planning Network, andXYPN member Ford Financial Solutions filed suit against the SEC in September, claiming that the SEC had ignored a provision of the Dodd-Frank Act that said regulators should create a fiduciary standard for broker-dealers that is no less stringent than the one for registered investment advisors.
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