Displaying items by tag: reg bi

(Washington)

Brokers, those that are dually-registered, pretty much anyone covered by Reg BI, you should be on the lookout for a pending crackdown by the new Biden administration-led SEC…see the full story on our partner Magnifi’s site

(Washington)

Brokers, advisors, anyone covered by Reg BI, look out for a crackdown by the SEC. Former chief of FINRA, Susan Schroeder, says that enforcement is likely to start soon (i.e. this year) and may be “very aggressive”. According to Schroeder, “Early enforcement actions will be predicated on things like policies and procedures, but by past SEC standards, that is very aggressive”, and if the enforcement actions “are predicated on things like inadequate training or failures to have policies and procedures, from a legal theory perspective, that’s aggressive”.

FINSUM: So any way you cut it, SEC enforcement of the DOL rule this year looks like it is going to be intense. Brokers beware.

(Washington)
Every year around this time, advisors can get a special look at what the SEC’s policy priorities are likely to be for the rest of the year. This takes on special significance this year since we have a new administration in place. The way to get the insight is to look at what focus the SEC applies to their regulatory exams, and this year they are quite interesting. SEC exams for 2021 will focus on Reg BI (not such a surprise), but also climate, ESG, and Crypto, among other topics.

FINSUM: Quite an interesting list, but one very notable absence: meme stocks/social media. This is important because some think the SEC will turn its gaze to that area, which might have delayed focus on Reg BI.

(New York)

All the regulatory focus recently has been on the SEC and DOL, and understandably so. However, FINRA plays a big role in the lives of RIAs and BDs, and it looks poised to make a big move. FINRA is currently examining Reg BI and seeing if they believe it applies to the meme stock trading situation. In particular, FINRA is considering whether new regulations need to be put in place that govern self-directed trading which is not covered by Reg BI. FINRA says it is “committed to supporting the SEC staff’s review (announced in October 2020) of the increase in self-directed trading by retail investors that is not covered by Reg BI, and the effectiveness of existing regulatory requirements in protecting investors in those circumstances”.

FINSUM: This is still in the early stages so it is hard to tell the extent to which it may affect advisors, but it is certainly something to keep an eye on.

(Washington)

One big anxiety that has been on every broker’s mind since mid-January is: is the SEC going to be make Reg BI compliance tougher, or introduce something even worse? A lose-lose ...View the full story on our partner Magnifi’s site