SEC Will Not Delay Reg BI Compliance Date

SEC Chair Jay Clayton announced that the SEC will not delay the June 30, 2020 compliance date for Regulation Best Interest ("Reg. BI"), despite the COVID-19 pandemic.

As previously covered, Reg. BI will require broker-dealers not to prioritize their interests ahead of their customers' when making recommendations regarding a securities transaction, investment strategy, or account recommendation.

In a statement, Mr. Clayton emphasized the importance of requiring that investment professionals put their clients' interests ahead of their own, particularly in times of uncertainty. He also identified several measures already taken by firms in order to prepare for the upcoming compliance date. Based on the progress in implementing these initiatives and their benefits to retail investors, Mr. Clayton stated that the compliance deadline "remains appropriate." He noted that firms unable to make certain filings or meet certain requirements due to COVID-19 related disruptions should engage with the SEC.