On June 5, 2019, the Securities and Exchange Commission
(SEC) voted to adopt a package of rulemakings and interpretations
affecting broker-dealers and investment advisors. The actions are
designed to:
- Enhance and clarify the standards of conduct applicable
to broker-dealers and investment advisors;
- Help retail investors better understand and compare the
services offered and make an informed choice of the relationship
best suited to their needs and circumstances; and
- Foster greater consistency in the level of protections
provided by each regime, particularly at the point in time that a
recommendation is made.
The package includes the new Regulation Best Interest, the
new Form CRS Relationship Summary and two separate interpretations
under the Investment Advisors Act of 1940. Regulation Best Interest
and Form CRS will become effective 60 days after they are published
in the Federal Register and will include a transition period until
June 30, 2020 to give
