Investors will soon learn more about conflicts of interest that can bias investment advice under a regulatory action that is expected to be completed on Wednesday. Less clear is whether it would disrupt how brokers are paid.
The Securities and Exchange Commission plans to vote Wednesday on what it calls Regulation Best Interest, which says brokers can’t put their own paychecks ahead of a customer’s needs. The SEC’s proposal for the rule, issued last year, said brokers should disclose and reduce financial conflicts of interest, though it doesn’t mandate how to limit them.
‘Enforcement 40’ for 2020
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn