In the August/September issue, we summarized the SEC’s proposed Regulation Best Interest. The proposal would require broker/dealers to act in the best interests of their clients and mitigate conflicts of interest. Broker/dealers would not have to operate under the same fiduciary standards that apply to Registered Investment Advisors, but the rule would raise the standard of care for broker/dealers.
Before the period for public comments closed in August, we submitted suggestions to improve the final rule. As the SEC evaluates thousands of comment letters in response to its proposal, we take a step back and summarize what we think are the most important matters the commission needs to consider as it crafts a final rule. We offered suggestions to the SEC for each of the following issues: