Regulation Best Interest, the part of SEC's 1,000-page proposal that addresses brokers' sales practices, is defined by new Disclosure, Care, and Conflict of Interest Obligations.(Photo: Diego M. Radzinschi/ALM)
In the immediate aftermath of the Security and Exchange Commissions' released proposal for a best interest standard, lines are being drawn over whether the regulation goes far enough to enhance the suitability standard broker-dealers currently operate under.
The tension will surprise no one at the SEC. At the end of this week's open forum vote to release the proposal to the public, Chairman Jay Clayton insisted the proposal extends brokers' duties to clients beyond the suitability standard, after Commissioner Kara Stein argued the proposal merely reiterates FINRA's suitability standard.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
