SEC’S REGULATION BEST INTEREST – A CAPCO INTERPRETATION

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SEC’S REGULATION BEST INTEREST – A CAPCO INTERPRETATION

  • David Vasecka
  • Published: 17 April 2019
Wealth managers may feel a case of déjà vu when first reviewing the Security and Exchange Commission’s (SEC) proposed Regulation Best Interest. Similar to the Department of Labor’s (DOL) revised Fiduciary Standard for retirement accounts, or ‘The DOL Fiduciary Rule’ as it became known a few years ago, the new legislation speaks a familiar language. The SEC wants to ensure wealth management institutions put the interest of the client first and, thus, seeks to put in place an enhanced suitability standard, known as the ‘Best Interest’ standard.

With this rule unlikely to get stalled in the courts. Firms need to make sure they are prepared once it takes effect. Read on to learn more about what this regulation means for wealth managers, how it differs from the DOL Fiduciary Rule and next steps for your organization to consider.