SEC

Blass and Peirce contrast broker-dealer and investment adviser standards

Peirce expresses openness to extending Reg BI implementation deadline if firm shows good faith compliance efforts

Her comments, as reported by InvestmentNews, were made at the recent SIFMA seminar.

Jay Clayton’s speech on Regulation Best Interest and the Investment Adviser Fiduciary Duty

SEC Chairman Jay Clayton

Here is a copy of Chairman Clayton’s recent speech on broker-dealer and investment adviser standards of conduct.

Clayton defends standards of conduct rulemaking

As reported in Bloomberg, Jay Clayton characterized various objections to Regulation Best Interest and other parts of the rulemaking as “false, misleading” and in some cases, “policy preferences disguised as legal critiques.”” He also dismissed claims that the SEC’s interpretive release effectively lowered the standard of conduct for investment advisers. These remarks were made as part of a speech in Boston this week.

Focus turns to Reg BI implementation

Update on SEC Standards of Conduct Package/Weekend Reading

The Securities and Exchange Commission’s package of rule amendments and interpretations on broker-dealers’ and investment advisers’ standards of conduct will be published today in the Federal Register.  The SEC releases were issued on June 5.  Publication does not affect the timing of the rule and form amendments, which have a compliance date of June 30, 2020.  However, the interpretive releases are effective upon publication.  Here are the links:

The U.S. House of Representatives has added a provision to the appropriations bill for the fiscal year beginning October 1, 2019, and ending September 30, 2020, to provide that none of the appropriated funds for that fiscal year may be used by the SEC to implement, administer, enforce, or publicize any part of the package.  The provision is not expected to be included in the Senate version of the appropriations bill.

Larry Stadulis, Sara Crovitz and John Baker will participate in a 90-minute Strafford webinar on July 31, from 1:00 to 2:30 pm, on Regulation Best Interest and Other New SEC Standards of Conduct: Impact on Broker-Dealers, Investment Advisers and Investment Companies.  The webinar will provide continuing legal education credit, and there is an early registration discount for people who sign up by today. You can register here.

We have already presented a shorter (one-hour) webcast, which aired July 9, featuring Larry Stadulis, Alan Goldberg, and John Baker, on the same subject.  This webinar is less detailed than the Strafford webinar will be and does not provide continuing legal education credit, but it does have the advantage of being free. You can view the webcast here.

In addition, we have published a number of client alerts from different perspectives on the SEC rulemaking. You can find all of our analysis in a single downloadable PDF here.

Have a nice weekend.

Reminder – Webcast: The Practical Effects of Regulation Best Interest, Form CRS, and Advisers Act Interpretations on Broker-Dealers, Investment Advisers and Investment Companies

Larry Stadulis, Alan Goldberg and John Baker will host a 1 hour webcast to discuss the SEC’s adoption of Regulation Best Interest, Form CRS, and other rules and interpretations, and their effect on broker-dealers, registered investment advisers and investment companies.

The webcast will occur on July 9 at 2 pm (EDT). Click here to register.

A Guide to Regulation Best Interest

Risk&Reward, July 1, 2019Click image to view PDF

Reg BI FAQs may be on the horizon

According to a report by Politico Pro, SEC Commissioner Hester Pierce indicated that the SEC is “very likely” to publish additional guidance on how to comply with Regulation Best Interest, possibly in the form of FAQs. The SEC may also produce a chart with a side-by-side comparison of broker-dealer and investment adviser obligations.