SEC bulletin tackles Reg BI care obligation FAQs
By 
Kyle Brasseur2023-04-21T17:46:00
Staff at the Securities and Exchange Commission (SEC) issued a bulletin Thursday addressing standards of conduct for broker-dealers and investment advisers in addressing their care obligations under Regulation Best Interest (Reg BI) and the Investment Advisers Act.
Reg BI, which took effect in 2020, requires financial professionals to act in the best interests of a customer when offering investment strategies involving securities. Compliance with the rule was highlighted by the SEC earlier this year as an area of examination priority in 2023 after examiners in January issued a risk alert listing deficiencies they found in broker-dealer’s efforts under the rule.
A key tenet of Reg BI is its care obligations, which require investment advisers to:
Related articles
-
News BriefCarl M. Hennig dinged by SEC over Reg BI lapses
Wisconsin-based broker-dealer Carl M. Hennig agreed to pay a $50,000 fine to settle allegations by the Securities and Exchange Commission it failed to comply with Regulation Best Interest.
-
PremiumNew SEC rules for private fund advisers will keep compliance teams busy
Even though compliance dates for the Securities and Exchange Commission’s new private fund rules are a year to 18 months away, compliance teams should start analyzing the impact now, according to experts.
-
Premium
SEC passes sweeping new rules for private fund advisers
The Securities and Exchange Commission passed a sweeping set of rules for the $26 trillion private fund industry designed to increase transparency and competition but with provisions that address industry concerns about potential overreach.
More from Regulatory Policy
-
ArticleWhat is AI washing and why companies need to stop exaggerating their AI prowess
The buzz around generative AI has reached fever pitch over the past few years—to such an extent that it’s practically a death knell for any company to say it’s not investing massively in gen AI to transform their business. There’s only one problem: many companies are either being misleading or ...
-
News BriefApple, Google face compliance crossroads as states push digital safeguards
A new law in Texas will go into effect next January that requires Apple and Google to verify the age of their app store users. This marks another piece of legislation from the state level intended to protect children, and the second such law specifically from Texas to limit children’s ...
-
Basic PageConsumer electronic supply chain at risk, FCC says in proposing new rules
Thousands of computers and other consumer electronic devices imported into the U.S. that were certified as safe by foreign laboratories have been identified as having links to the Chinese government or military, Brendan Carr, chair of the Federal Communications Commission, said Thursday in announcing an order to close the security ...