SEC Commissioner Warns Broker-dealers to Brace for Regulation Best Interest

Published On June 12, 2019

A Commissioner at the US’s Securities and Exchange Commission, Hester Peirce, has warned that broker-dealers should expect a “massive implementation” process for Regulation Best Interest (RBI). 

The new regulation was announced last month and it is anticipated that it will clarify the standards expected of broker-dealers and investment advisers. However, Peirce has noted that there will likely be a “very aggressive implementation timeline”, with a compliance date of 30 June 2020.

Peirce added that it is very likely that the SEC will issue guidance, but in the meantime urges the industry to “come in as soon as they see issues” as “it’s better to get those questions in early so that they can get answered early”. Moreover, she confirmed that SEC is working alongside FINRA towards the implementation, as FINRA will be the enforcer of Reg BI once it takes effect.