The US Securities and Exchange Commission has issued rulemaking that:
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requires registered investment advisers and registered broker-dealers to provide a brief relationship summary to retail investors
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establishes a standard of conduct for broker-dealers when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer
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provides an interpretation regarding investment advisers’ fiduciary obligations
At the same time, state securities regulators are considering updating their rules to, among other things, directly incorporate the SEC’s broker-dealer standard of conduct rule. Adding to the emerging fiduciary and best interest patchwork are regulations that have been put in place by state insurance regulators including the New York State Department of Financial Services and the National Association of Insurance Commissioners. The US Department of Labor recently released its Proposal 4.0 regarding ERISA fiduciary investment advice, including amended exemptions for conflicted investment advice.
Resources
- Advisers Act Regulatory Update Series, June 17, 2021
- DOL's fiduciary proposal - what financial institutions should be considering now, September 1, 2020
- Advisers Act Regulatory Series: 2020 First Quarter Update, March 11, 2020
For additional questions on Fiduciary and Regulatory Compliance, please email us.
Questions about the DOL fiduciary rule? Visit DOL Fiduciary Rule.
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