News & Analysis as of

Broker-Dealer Regulation BI Disclosure Requirements

Goodwin

SEC EXAMS Division 2025 Priorities Signal Continued Scrutiny of Broker-Dealers

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The SEC Division of Examinations (EXAMS) recently published its list of priorities for 2025, providing a roadmap for broker-dealers and other registrants to better understand where examination teams will focus their efforts...more

Dechert LLP

Cash Sweep Programs Face Increasing Scrutiny from Regulators and Investors

Dechert LLP on

Recent months have seen a significant increase in litigation around, and regulatory scrutiny by the SEC and FINRA of, cash sweep programs offered to retail advisory clients and brokerage customers. Many of these...more

Faegre Drinker Biddle & Reath LLP

“Or Worse, Expelled.”

Hermione Granger (yes, from Harry Potter) is famously attributed with the following quote: “I’m going to bed before either of you come up with another clever idea to get us killed. Or worse, expelled.” Unfortunately,...more

Holland & Knight LLP

SEC Knows Best: Exam Highlights Deficiencies in Broker-Dealer Reg BI Compliance

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The SEC's Division of Examinations (Exam) published a Risk Alert on Jan. 30, 2023, summarizing alleged deficiencies its staff observed since Exam started conducting broker-dealer examinations to assess compliance with...more

McGuireWoods LLP

SEC Issues Risk Alert on Reg BI Deficiencies Identified During Exams

McGuireWoods LLP on

On Jan. 30, 2023, the Securities and Exchange Commission’s Division of Examinations (Division) released a Risk Alert, “Observations from Broker-Dealer Examinations Related to Regulation Best Interest,” in which the Division...more

Oberheiden P.C.

When Is a Trade Considered “Unauthorized”?

Oberheiden P.C. on

Allegations of unauthorized trading claims present significant risks for investment brokers and brokerage firms. In addition to investor arbitration with the Financial Industry Regulatory Authority (FINRA), brokers and...more

Goodwin

FINRA on Reg. BI Compliance: There is “No One-Size Fits All” Approach

Goodwin on

​​​​​​​FINRA recently hosted a conference call with its smaller members covering Regulation Best Interest and Form CRS compliance. FINRA’s resounding message was that there is “no one-size-fits all” approach to Reg. BI...more

Goodwin

BD and IA Conflicts of Interest: SEC Staff Says Don’t Set It (Them) and Forget It (Them)

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​​​​​​​SEC staff recently served up a juicy staff bulletin covering the standards of conduct for broker-dealer and investment adviser conflicts of interest. The staff bulletin includes 13 Q&As categorized into five different...more

Goodwin

FINRA Proposes to Publicly Identify “Restricted Firms” on BrokerCheck

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BrokerCheck is the database through which FINRA publishes licensing, registration, and disciplinary history of brokerage industry firms and their personnel. BrokerCheck does not currently specify whether a particular firm is...more

Faegre Drinker Biddle & Reath LLP

Comparing the Standard of Conduct: Broker-Dealers vs. Investment Advisers

The SEC’s standard of conduct for broker-dealers under Regulation Best Interest (Reg BI) became effective on June 30, 2020. While registered investment advisers (RIAs) always have been subject to a best interest standard of...more

Eversheds Sutherland (US) LLP

Videocast: Asset management regulation in 2020 videocast series – The annuity regulatory landscape

In this Bottom Line videocast, Dodie Kent and Clifford Kirsch discuss: The continued emergence of registered index linked annuity products. The NAIC’s amended Suitability Rule. The SEC’s variable product summary prospectus...more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #23

Regulation Best Interest: SEC 2020 Examination Priorities—Examinations for Compliance With Reg BI and the Investment Adviser Interpretation - The SEC has issued its final Regulation Best Interest (Reg BI), Form CRS Rule,...more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #22

Regulation Best Interest: FINRA Examination Priorities—2020 Examinations for Compliance - The SEC has issued its final Regulation Best Interest (Reg BI), Form CRS Rule, RIA Interpretation and Solely Incidental...more

UB Greensfelder LLP

Reg BI Continues To Tantalize And Confuse Both The Industry And The Regulators

UB Greensfelder LLP on

My young boys will sometimes chase me around the house, catch me, and yell “gotcha” as they drag me off to their pretend jail. No matter how much I plead that I’ve done nothing wrong, I always end up in jail, despite having...more

Carlton Fields

New SEC Regulation Defines ‘Best Interest’ Flexibly

Carlton Fields on

Each Broker-Dealer Can Help Shape Concept Appropriately to Its Business - The SEC’s new Regulation Best Interest (Reg BI) requires broker-dealers to: - Disclose business practices in dealing with retail customers; and ...more

Vedder Price

The New Standards for Investor Protection: An Analysis of Regulation Best Interest, Form CRS and Two Interpretations of the US...

Vedder Price on

On June 5, 2019, the Securities and Exchange Commission (the “SEC”) voted three to one to approve a package of rulemakings and interpretations designed to enhance the quality and transparency of investors’ relationships with...more

WilmerHale

The Countdown Is On! Building a Reg BI Compliance Program as Deadlines Loom

WilmerHale on

On June 5, 2019, the SEC adopted a package of rulemakings and interpretations designed to enhance the quality and transparency of investors’ relationships with broker-dealers and investment advisers. The focal point of this...more

Carlton Fields

Unpacking the SEC’s Regulation Best Interest Package

Carlton Fields on

On June 5, 2019, the SEC adopted a four-part regulatory package that includes: new Regulation Best Interest (Reg. BI), the related “Relationship Summary” disclosure form (Form CRS), and two interpretations of the Advisers...more

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