Is Reg BI stronger than an adviser’s fiduciary duties?

SEC Commissioner
Hester M. Peirce

InvestmentNews reported that SEC Commission Hester Pierce stated at a recent conference, “When you lay it side-to-side against the fiduciary standard, I think one could argue that it’s a stronger standard because it does require mitigation or elimination of conflicts in a way the fiduciary standard does not.” This is in reference to certain provisions within proposed Regulation Best Interest that disallow disclosure as a proper method for addressing certain conflicts of interest. We will wait to see if the final Reg BI will better define the type of conflicts that cannot be disclosed away.