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Advisor Insights

Final Thoughts on the SEC’s Regulation Best Interest

Contributor Scott Simon examines one of the two lawsuits filed in September that could topple the new rule.

Ninety years ago last week--Oct. 29, 1929, known as Black Tuesday--marked the official beginning of the Great Depression, according to most historians. America didn’t emerge completely from that worldwide disaster until the build-up began for World War II.

In an effort to repair some of the excesses in the country’s financial markets that helped lead to the Great Depression, Congress passed the Securities Exchange Act of 1934 (’34 Act) and the Investment Advisers Act of 1940 (’40 Act), both of which were signed into law by President Franklin Roosevelt. The ‘34 Act also created the U.S. Securities and Exchange Commission, the agency of the U.S. government with primary responsibility for enforcing federal securities laws.