Life and Annuity Groups Give SEC’s Final Best-Interest Standard Mixed Reviews
June 11, 2019 by Allison Bell
Members of the U.S. Securities and Exchange Commission voted 3-1 Wednesday to approve the SEC’s Regulation Best Interest: The Broker-Dealer Standard of Conduct (Regulation BI).
The SEC has posted a 771-page regulation packet for Regulation BI, which is set to have a compliance date of June 30, 2020.
The SEC also agreed to update its customer relationship summary (CRS) form to reflect the Reg BI changes, and to issue instructions on how registered investment advisors should interpret their fiduciary duty requirements.
The SEC began working on the Reg BI project after the U.S. Department of Labor began to have problems with implementing its own fiduciary rule regulations. The new standard requires broker-dealers to act in investors’ best interest when making investment recommendations.
Groups representing the securities industry and financial planners have started to weigh in.
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