American Bar Association 

On June 5, 2019, the SEC voted to adopt Rule 15I-1, known as “Regulation Best Interest” or “Reg. BI,” under the Securities Exchange Act of 1934. The SEC adopted Reg. BI to enhance the standard of conduct applicable to broker-dealers and their financial advisors when servicing retail clients and require that they act in their clients’ best interest. Reg. BI became effective September 10, 2019. The compliance date for Reg. BI is June 30, 2020.

The SRO and States Subcommittee of the Section of Litigation’s Securities Litigation Committee recently hosted a State Securities Regulators Roundtable to discuss Reg. BI and its implications for the financial services industry and regulators. The following professionals participated in the Roundtable:

  • Moderator: Andrew W. Sidman, Principal, Bressler, Amery & Ross, P.C.

  • Joseph P. Borg, Director, Alabama Securities Commission; NASAA President 2007, 2018

  • Christopher W. Gerold, Bureau Chief, New Jersey Bureau of Securities; Chair, NASAA Enforcement Section 2019

  • Katherine C. Milgram, Vice President & Counsel, Head of Regulatory Affairs, Chief of Staff to the General Counsel, The Guardian Life Insurance Company

  • Michael S. Pieciak, Commissioner, Vermont Department of Financial Regulation; NASAA President 2019

The Roundtable participants provided valuable insights into the various stakeholders’ viewpoints on Reg. BI, all of which can be distilled into the following tips for broker-dealers as they prepare for the evolving regulatory framework under Reg. BI.

This article first appeared on the American Bar Association website. Click here to read the full article on their website. 

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