Members-Only Article
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.