{"id":22073,"date":"2018-08-16T00:01:43","date_gmt":"2018-08-16T04:01:43","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?p=22073"},"modified":"2018-08-16T09:56:06","modified_gmt":"2018-08-16T13:56:06","slug":"sec-receives-an-earful-on-reg-bi","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/sec-receives-an-earful-on-reg-bi\/","title":{"rendered":"SEC Receives an Earful on \u2018Reg BI\u2019"},"content":{"rendered":"

SEC Receives an Earful on \u2018Reg BI\u2019<\/h1>\n

August 15, 2018 | Beth Glavosek | Blue Vault<\/p>\n

\"\"<\/p>\n

Ever since the long-debated Department of Labor (DOL) Fiduciary Rule faded away earlier this year, regulators have attempted to keep the spirit of the ruling alive by implementing a substitute rule.
\n\u00a0
\nIn April, the Securities & Exchange Commission (SEC) introduced its Regulation Best Interest<\/a>\u2013 or Reg BI \u2013 in an effort to establish a standard of conduct for broker-dealers and associated persons when they make recommendations to retail customers involving securities. The proposed standard of conduct is to act in the \u2018best interest\u2019 of the retail customer and not place the interests of the broker-dealer ahead of the interest of the retail customer.
\n\u00a0
\nAs reported in Investment News<\/a>, the proposal includes a\u00a0best-interest standard for brokers<\/a>;\u00a0new disclosure requirements<\/a> for brokers and investment advisers and\u00a0financial adviser title reform<\/a>; and an\u00a0interpretation of the fiduciary standard<\/a>\u00a0that currently applies to investment advisers.
\n\u00a0
\nThe SEC opened up a comment period to receive public feedback, and this period recently ended on August 7. Not surprisingly, such a regulation has been met with continued skepticism<\/a> and resistance from those in the financial community who believe that it does more to confuse than clarify.
\n\u00a0
\nWhat are the controversies?<\/strong>
\nThe following are among the proposed ruling\u2019s controversial aspects:<\/p>\n\n\n\n\n\n
\u2022<\/td>\nAttempts to control \u2018titles\u2019 in the advisory relationship.<\/strong> While some responders support the SEC’s intent of helping retail investors better understand financial professional roles and services, they also believe that restrictions on the use of titles could create unintended consequences. For example, restricting the use of the term \u2018advisor\u2019 could lead to a proliferation of other titles that add to customer confusion.<\/td>\n<\/tr>\n
\u2022<\/td>\n\u00a0Reliance on disclosure to protect investors.<\/strong> As one advisor points out, clients are already not reading complicated prospectuses. So, relying on them to read complicated disclosure documents is probably not the answer to helping them better understand the terms of their financial advice.<\/td>\n<\/tr>\n
\u2022<\/td>\nSuitability and client choice.\u00a0<\/strong>Opponents believe that the current proposal doesn\u2019t do much to increase real investor protection, yet, like the old DOL ruling, it limits some advisors\u2019 ability to provide a complete array of products and services. As one advisor puts it, \u201cDiversity in product, service and compensation are good for the industry and ultimately for the client when used appropriately.”<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

\nA number of financial industry leaders responded to the call for comments, and their feedback can be read here<\/a> or in a recent article published by Financial Planning<\/a>.
\n\u00a0<\/p>\n

<\/div>","protected":false},"excerpt":{"rendered":"

SEC Receives an Earful on \u2018Reg BI\u2019 August 15, 2018 | Beth Glavosek | Blue Vault Ever since the long-debated Department of Labor (DOL) Fiduciary Rule faded away earlier this … <\/p>\n

Read more<\/a><\/p>\n","protected":false},"author":1676,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-22073","post","type-post","status-publish","format-standard","hentry","category-reitindustryupdate"],"acf":[],"yoast_head":"\nSEC Receives an Earful on \u2018Reg BI\u2019 - Blue Vault<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/qa.bluevaultpartners.com\/sec-receives-an-earful-on-reg-bi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Receives an Earful on \u2018Reg BI\u2019 - Blue Vault\" \/>\n<meta property=\"og:description\" content=\"SEC Receives an Earful on \u2018Reg BI\u2019 August 15, 2018 | Beth Glavosek | Blue Vault Ever since the long-debated Department of Labor (DOL) Fiduciary Rule faded away earlier this … Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/qa.bluevaultpartners.com\/sec-receives-an-earful-on-reg-bi\/\" \/>\n<meta property=\"og:site_name\" content=\"Blue Vault\" \/>\n<meta property=\"article:published_time\" content=\"2018-08-16T04:01:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-08-16T13:56:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/05\/Featured-News-Image_0012_Organization_SEC_00-300x225.jpg\" \/>\n<meta name=\"author\" content=\"Sonya Andrews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sonya Andrews\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/qa.bluevaultpartners.com\/sec-receives-an-earful-on-reg-bi\/\",\"url\":\"https:\/\/qa.bluevaultpartners.com\/sec-receives-an-earful-on-reg-bi\/\",\"name\":\"SEC Receives an Earful on \u2018Reg BI\u2019 - 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