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SEC to Vote on Regulation Best Interest June 5

By Alex Padalka May 24, 2019

The SEC says it will vote on Regulation Best Interest, its proposed overhaul of investment advisor and broker conduct, in less than two weeks.

On June 5, the SEC’s Division of Investment Management and Division of Trading and Markets will consider several aspects of the proposed regulation, the regulator says in open meeting agenda notice posted on its website yesterday.

For starters, the SEC will consider whether to adopt a new rule governing broker-dealer conduct when they make recommendations to retail investors about transactions or investment strategies, according to the regulator.

In addition, the SEC’s staff will also consider whether to adopt rules requiring RIAs and brokers to provide retail investors with a customer relationship summary, known as Form CRS, the regulator says.

The commission will also consider whether to publish its interpretation of the investment advisor conduct standard and another interpretation of the “solely incidental” provision of the Investment Advisers Act of 1940, according to the notice. The provision excludes certain persons or firms from the definition of an investment advisor.

It’s unclear whether the scheduling of the vote indicates that the SEC will accelerate the final release of the rule.


Barbara Roper, director of investor protection at the Consumer Federation of America and a member of the SEC’s Investor Advisory Council, which advises the SEC on regulatory priorities and other issues, has said that there’s been rumors of an earlier-than-expected release. But she told FA-IQ earlier this month that the council isn’t told about the timing of any rule announcements.