(Washington)

In what seemed an inevitable development, House Democrats are starting their push against the SEC’s Regulation Best Interest. The House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets will devote a hearing next Thursday to the SEC’s new rule proposal. The chairwoman of the committee is Maxine Waters, who was a champion of the defunct DOL Rule. Waters has commented on the SEC BI Rule that “When you have investment advisers who are not acting in [clients'] best interests but acting in their own best interests, it does not bode well for our senior investors in particular”.

FINSUM: We think the SEC BI Rule is a long way from ever getting enacted and will likely experience significant redrafting before implementation.