News & Analysis as of

Regulation Best Interest Financial Services Industry

Orrick, Herrington & Sutcliffe LLP

FINRA accepts Regulation BI-related AWC

On January 13, FINRA accepted a Letter of Acceptance, Waiver and Consent (AWC) from a financial services member firm to address allegations of supervisory failures related to recommendations of alternative investments. ...more

WilmerHale

Keeping Up with the Regulators: How to Build an Effective Compliance Programme to Satisfy the Best Interest Care Obligation

WilmerHale on

It has been nearly five years since the US Securities and Exchange Commission (‘SEC’ or ‘the Commission’) adopted Regulation Best Interest (Reg BI) to enhance the standard of conduct applicable to broker-dealers when they...more

Seward & Kissel LLP

Financial Services Firm Affiliates Settle Five SEC Enforcement Actions for Allegedly Misleading Customers and Failing to Act in...

Seward & Kissel LLP on

Who may be interested: Registered Investment Companies; Registered Investment Advisers; Broker Dealers; Compliance Officers; Boards of Directors - Quick Take: The SEC recently settled five separate enforcement proceedings...more

Bracewell LLP

FINRA Facts and Trends: December 2023

Bracewell LLP on

Welcome to the latest issue of Bracewell’s FINRA Facts and Trends, a monthly newsletter devoted to condensing and digesting recent FINRA developments in the areas of enforcement, regulation and dispute resolution. This month,...more

Mayer Brown Free Writings + Perspectives

SEC Announces 2024 Exam Priorities

On October 16, 2023, the Division of Examinations of the U.S. Securities and Exchange Commission (the “Division” and the “SEC,” respectively) announced its examination priorities for 2024. While the Division typically...more

Carlton Fields

SEC Proposal Balances AI-Like Technology Use With Investor Best Interests: Has the Regulator Picked a Winner?

Carlton Fields on

Like other savvy businesses, investment advisers and broker-dealers have increasingly embraced the use of predictive data analytics, artificial intelligence, and similar technologies (AI-like technologies) to help generate...more

Carlton Fields

Mass. High Court Plays Wild Card: Upholds Broad Fiduciary Duty for Broker-Dealers

Carlton Fields on

On August 25, 2023, the Massachusetts Supreme Judicial Court upheld the validity of a rule promulgated in 2020 by the secretary of the commonwealth that imposes a broad fiduciary duty upon securities broker-dealers and their...more

Faegre Drinker Biddle & Reath LLP

“Or Worse, Expelled.”

Hermione Granger (yes, from Harry Potter) is famously attributed with the following quote: “I’m going to bed before either of you come up with another clever idea to get us killed. Or worse, expelled.” Unfortunately,...more

Bressler, Amery & Ross, P.C.

SEC Publishes Risk Alert Highlighting Deficiencies Observed During Regulation Best Interest Examinations of Broker-Dealers

It should come as no surprise to financial industry participants that the first Risk Alert published by the SEC’s Division of Examinations (the “Division”) in 2023 relates to Regulation Best Interest (“Reg BI”). The Risk...more

Mayer Brown Free Writings + Perspectives

FINRA Releases 2023 Report on Its Examination and Risk Monitoring Program

On January 10, 2023, the Financial Industry Regulatory Authority, Inc. (“FINRA”) released its 2023 Report on FINRA’s Examination and Risk Monitoring Program (the “Report), available at:  2023 Report on FINRA’s Examination and...more

Stinson LLP

SEC Staff Posts Conflicts of Interest Guidance for Broker-Dealers and Investment Advisers

Stinson LLP on

On August 3, 2022, the Securities and Exchange Commission (SEC) staff published a Q&A-Styled Bulletin focused on conflicts of interest under the Investment Advisers Act of 1940 (Advisers Act) and Regulation Best Interest (Reg...more

Seward & Kissel LLP

SEC Files First Reg BI Action Against Broker-Dealer

Seward & Kissel LLP on

On June 15, 2022, the Securities and Exchange Commission (“SEC”) filed a complaint against California-based broker-dealer Western International Securities, Inc. (“Western”) alleging violations of Regulation Best Interest...more

Lowenstein Sandler LLP

SEC’s OCIE Releases 2022 Examination Priorities for Investment Advisers, Broker-Dealers, and Other Financial Industry...

Lowenstein Sandler LLP on

On March 30, the Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (SEC) published its examination priorities for 2022 (the Priorities), which discuss its examination approach...more

Goodwin

SEC Proposes Short Sale Disclosure Rule and Reopens Comment Period for Reporting on Securities Loans

Goodwin on

In This Issue. The U.S. Securities and Exchange Commission (SEC) proposed a new rule to increase market transparency regarding short selling and extended the comment period for its proposed rule requiring reporting on...more

UB Greensfelder LLP

[Webinar] What's New at the SEC in 2022? - March 2nd, 2:00 pm - 3:00 pm EST

UB Greensfelder LLP on

Join Ulmer partner Frances Floriano Goins and Elizabeth Hill, Senior Vice President, Deputy General Counsel, at Huntington National Bank, as they share an overview of the 2022 exam priorities. They will also discuss...more

Akerman LLP

DOL to Begin Enforcement of New Fiduciary Advice Exemption

Akerman LLP on

On December 18, 2020, the United States Department of Labor (the DOL) adopted Prohibited Transaction Exemption 2020-02, Improving Investment Advice for Workers & Retirees (PTE 2020-02 or the Exemption), a new prohibited...more

Bressler, Amery & Ross, P.C.

Ask FINRA: A Panel of Senior FINRA Officials Answer Pressing Industry Questions

On July 21, 2021, SIFMA hosted a panel titled Ask FINRA: A Panel of Senior FINRA Officials Respond to Your Questions. The panel covered the following important topics: (1) key issues of oversight for market regulation and...more

Bressler, Amery & Ross, P.C.

SIFMA C&L Virtual Forum Addresses FINRA’s 2021 Priorities for Private Client Firms

On July 20, 2021, SIFMA hosted a panel discussing key legal and regulatory issues for private client firms at SIFMA’s 2021 C&L Virtual Forum. Several key subjects were discussed by the panel, including: (1) FINRA’s 2021...more

BCLP

Heads Up! Your Form CRS Grace Period Has Ended: The SEC Drops the Hammer on 27 Firms for Compliance Failures with Form CRS Filing...

BCLP on

In case you were wondering if you can still push off finalizing your Form CRS filing, posting it on your website and delivering it to clients, the SEC has read your mind and answered loudly: no more! On Monday, the SEC...more

Bressler, Amery & Ross, P.C.

Key Takeaways from ABA Panel on FINRA’s 2021 Exam Findings and Regulatory Priorities

On February 17, 2021 the SRO and States Subcommittee of the ABA Securities Litigation Committee hosted a panel of senior representatives from FINRA and in-house legal/compliance departments to discuss FINRA’s 2021 Report on...more

UB Greensfelder LLP

[Webinar] SEC Update: Reg BI, Enforcement Activity, and the Willfulness Standard - February 11th, 2:00 pm - 3:00 pm EST

UB Greensfelder LLP on

Join Heidi E. VonderHeide as she discusses how Regulation Best Interest is being implemented, examines post-effective date guidance and activity by the regulators, and shares what to expect during 2021 exams. Heidi will also...more

Bressler, Amery & Ross, P.C.

Maxine Waters Presses Biden to Rescind Reg BI

President-Elect Joe Biden is quickly learning that the line of people seeking regulatory reform in the wake of the Trump administration's regulatory free-for-all is getting longer all the time. At the front of the line is...more

Jones Day

Regulation Best Interest and ESG Investing: Confluence for the SEC or Consternation Under ERISA?

Jones Day on

Compliance with new Regulation Best Interest ("Regulation BI") need not prevent environmental, social, and governance ("ESG") investing, but beware of new proposed restrictions for some. As of June 30, 2020,...more

Goodwin

Financial Services Weekly Roundup: Treasury And SBA Codify Changes To PPP Flexibility Act

Goodwin on

In This Issue. The U.S. Department of the Treasury (Treasury) and the Small Business Administration (SBA) released an interim final rule to reflect changes made by H.R. 7010, the Paycheck Protection Program Flexibility Act,...more

Goodwin

Financial Services Weekly Roundup: OCC Finalizes New CRA Rule; Regulators Continue To Provide COVID-19-related Relief

Goodwin on

In This Issue. The Office of the Comptroller of the Currency (OCC) finalized a rule to strengthen and modernize regulations under the Community Reinvestment Act; the Securities and Exchange Commission (SEC) voted to adopt...more

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