On April 18, the U.S. Securities and Exchange Commission (SEC) released for comment three proposals intended to enhance the standard of conduct for investment professionals and to reaffirm and clarify the terms of existing relationships between investors and investment professionals:
- Regulation Best Interest: A new rule that would require broker-dealers and associated persons to act in the best interest of a retail customer when recommending a securities transaction or investment strategy involving securities.
- Investment Adviser Interpretation: An interpretation of the fiduciary standard of conduct for registered investment advisers and proposed new requirements for licensing and continuing education, delivery of account statements to clients with investment advisory accounts and financial responsibility.
- Form CRS/Relationship Summary: A new rule that would require broker-dealers and registered investment advisers to provide a brief relationship summary to investors at the beginning of a relationship and in connection with any material changes.
This Update provides an overview of the nearly 1,000 pages of the proposal releases and highlights several key takeaways. Click here to view.
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