Oct 18, 2018 - 2:30pm

Quick Take: Your Primer on SEC's Proposed Best Interest Regulations

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The Securities and Exchange Commission headquarters in Washington, D.C.
The Securities and Exchange Commission headquarters in Washington, D.C.

Fill me in:

The Securities and Exchange Commission (SEC) released proposals regarding the standards of conduct for broker-dealers and investment advisers that could impact all types of investors, from a young investor starting to save for the future to a family looking to buy their first home, pay for their child’s education, and save for their retirement.

Why does it matter?

The proposed rules have the potential to increase investor protection, choice, clarity, and opportunity.

Number to know:

85%. Following in-depth interviews with 15 companies that provide financial advisory services and products to nearly 78 million investment accounts, 85% said they view “protection for investors” as the most likely benefit of the proposals.

Our take:

“We appreciate the efforts of the SEC that led to these proposals for a best-interest standard for all investors.” – U.S. Chamber Center for Capital Markets Competitiveness President and CEO David Hirschmann (Read the full statement here)

What's next?

The SEC had an open comment period where individuals, businesses, and organizations like the Chamber submitted comments. The SEC will continue to gather information before proposing a final rule sometime in 2019.

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