Statement on SEC’s Staff Bulletin on Standards of Conduct for Brokers-Dealers and Investment Advisers
The following is a statement from CFP Board on the Securities and Exchange Commission’s Regulation Best Interest (Reg BI) and related set of guidance for investment advisers.
“CFP Board applauds the Securities and Exchange Commission’s latest Staff Bulletin on Standards of Conduct for Broker-Dealers and Investment Advisers. CFP Board’s skepticism about Reg BI when it was adopted centered on the vague and undefined ‘best interests’ concept on which it was based. This latest bulletin, focused on the Care Obligation of Reg BI, along with the previous two Staff Bulletins (Account Recommendations and Conflicts of Interest), provides substantial clarity on compliance expectations under Reg BI.”