NAIFA CEO Kevin Mayeux issued the following statement:
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Reg BI Enhances Consumer Protections With Uniform, Nationwide Standard
The Securities and Exchange Commission (SEC) today voted to finalize Regulation Best Interest (Reg BI), which significantly enhances the standard of care that broker-dealers (BDs) and their registered representatives (RRs) owe their clients. The standard contained in Reg BI exceeds the existing suitability standard by requiring BDs and their RRs to act in the best interests of their clients when recommending any securities transaction or investment strategy involving securities, without placing the interest of the BD or RR ahead of the interests of the client. In connection with Reg BI, the Commission also adopted a new client relations summary disclosure requirement known as Form CRS, and issued an interpretation of the fiduciary duty requirements that registered investment advisers must follow.
