Some of the SEC rule proposals generating the most withering criticism are among those that would have the biggest impact on financial advisors. But the widespread opposition won’t necessarily influence the SEC to revise them substantially before they become final regulations.
Financial industry trade associations, bipartisan lawmakers on Capitol Hill and even some investor advocates are strongly resisting SEC proposals on mutual fund reform, advisor custody of client funds and conflicts of interest related to advisors’ use of artificial intelligence and predictive analytics.
Many opponents want the SEC to withdraw those proposals. Although the agency has modified to some extent most of the nearly two dozen final rules it has promulgated since Chair Gary Gensler was sworn in in April 2021, taking a proposal off the table would be an extraordinary step.
Source: Trying to halt the SEC
