SEC’s ‘best interest’ Reg BI rule fails to live up to initial promise, panel says

August 7, 2024 by Doug Bailey

Reg BI, the rule adopted by securities regulators five years ago that intended to require brokers to provide a higher standard of care for clients, has not nearly lived up to its promises, leaving regular investors more vulnerable than ever to fraud and abuse by financial advisors.

That was the consensus finding of a recent panel hosted by the Institute for the Fiduciary Standard to mark the quinquennial of the Securities and Exchange Commission’s Reg BI, establishing a “Best Interest,” standard. The enhanced standard for financial professionals was seen as a means to address conflicts of interest, disclosure requirements, and compliance. 

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Originally Posted at InsuranceNewsNet on July 30, 2024 by Doug Bailey.