reporter's notebook

If You’re Wondering Who The SEC’s New ‘Best Interest’ Rule Helps, Listen To The SEC

UNITED STATES - DECEMBER 11: Jay Clayton, chairman of the Securities and Exchange Commission, testifies during a Senate Banking Committee hearing in Dirksen Building titled "Oversight of the U.S. Securities and Exchange Commission," on December 11, 2018. (Photo By Tom Williams/CQ Roll Call)
UNITED STATES - DECEMBER 11: Jay Clayton, chairman of the Securities and Exchange Commission, testifies during a Senate Banking Committee hearing in Dirksen Building titled "Oversight of the U.S. Securities and Excha... UNITED STATES - DECEMBER 11: Jay Clayton, chairman of the Securities and Exchange Commission, testifies during a Senate Banking Committee hearing in Dirksen Building titled "Oversight of the U.S. Securities and Exchange Commission," on December 11, 2018. (Photo By Tom Williams/CQ Roll Call) MORE LESS
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June 7, 2019 12:52 pm

It’s difficult to keep up with the fast-moving ticker of regulatory changes overseen by the Trump administration, so it’s not your fault if you missed this one: As part of a larger package, the Securities and Exchange Commission this week adopted the new “Regulation Best Interest,” which requires that stock broker/dealers act in their clients’ “best interest,” a term that is not defined.

Critics say the new standard isn’t any better than the weak, existing one — which requires that brokers recommend “suitable” investments — but that it gifts an unearned sheen of trustworthiness to the industry.

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