The SEC rulemaking package designed to enhance retail investors' protections when dealing with broker-dealers and investment advisers was published in the Federal Register.
The rulemaking package consists of (i) Regulation Best Interest (effective September 10, 2019), (ii) the Form CRS Relationship Summary (effective September 10, 2019), (iii) an interpretation of investment advisers' fiduciary duty (effective July 12, 2019), and (iv) an interpretation of the "solely incidental" prong of the broker-dealer exclusion under the Advisers Act (effective July 12, 2019).
SEC Chair Jay Clayton responded to criticism of the recently adopted rulemaking package designed to strengthen protections afforded retail investors.
By a 224 to 196 vote, the House of Representatives passed an amendment to the Financial Services and General Government Appropriations bill that would prohibit the SEC from implementing, administering, enforcing or publicizing Regulation BI and related rules and interpretations recently adopted by the SEC.
SIFMA dismissed New Jersey's proposal to create a state fiduciary standard, calling a federal standard the "optimal approach," as compared to the "uneven patchwork" of state laws.
SIFMA summarized the SEC's "Regulation Best Interest" rulemaking package.
SEC Commissioner Hester Peirce urged critics "to take a fair look at what [Regulation Best Interest] says before . . . proclaim[ing] it a success or failure" and committed the agency to closely monitoring the implementation of the new rule.
Cadwalader attorneys authored a memorandum on newly adopted Regulation Best Interest, which is intended to expand the duties that broker-dealers owe to retail investors.
The SEC adopted a rulemaking package designed to enhance retail investors' protections when dealing with broker-dealers and investment advisers.
Cadwalader attorneys authored a memorandum on the implications of the recently proposed SEC releases that are intended to expand and clarify the duties that broker-dealers and investment advisers owe to their clients under the Exchange Act.
The SEC proposed rules (i) to require broker-dealers to act in the "best interests" of retail customers when making investment recommendations and (ii) to affirm and clarify the various types of obligations that investment advisers owe to their clients.
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