There is quite a lot here (the Release for Regulation Best Interest tops 400 pages), including a good deal that could have a significant effect on the products that firms offer and the way in which broker-dealers conduct business. For example, broker-dealers will need to examine closely (i) the types of products that they offer (particularly proprietary, complex or structured products), (ii) the manner in which they compensate their employees, (iii) the manner in which they charge fees to…

To the sound advice from Commissioner Pierce, one might add that regulators should not attempt coordination where (i) there is no significant benefit and (ii) otherwise divergent rules and legal systems would make harmonization irrelevant. Protection of seniors is a good example: firms can certainly tailor the way in which they market to seniors so as to meet different types of expectations in the United States vs. the European Union (although fifty different state regimes present…

CFTC Chair Giancarlo's remark that the CFTC had strayed from its prior principles-based approach is notable. The assertion permits re-examination of the CFTC's trading rules with respect to swaps, where the details of the CFTC's requirements arguably diverged substantially from existing market practices and have drawn criticism from both sell- and buy-side market participants.

The settlement of governmental enforcement actions by donation to nonprofit organizations ought to be closely scrutinized, no matter how nice a thing it appears to be. At a minimum, shouldn't there be a transparent process for determining the beneficiaries?