A FINRA proposal to modify its suitability requirements and rules governing non-cash compensation to conform to the stricter standards of Regulation Best Interest was published in the Federal Register.
In a targeted examination, FINRA is seeking information on the practices of firms that charge zero commission on client trades and "the impact that not charging commissions has or will have on the Firm’s order routing."
SEC Chair Jay Clayton, Commissioner Hester M. Peirce and Division Director Dalia Blass highlighted the importance of ensuring that "Main Street investors" are protected through effective asset management regulation.
Regulation Best Interest significantly expands the obligations that broker-dealers owe to retail investors. To assist in navigating these new requirements, the Cabinet produced four new Retail Best Interest Topic Pages.
The Massachusetts Securities Division of the Office of the Secretary of the Commonwealth proposed a fiduciary conduct standard for broker-dealers, agents, investment advisers and investment adviser representatives.