Issa Hanna, Counsel at Eversheds Sutherland recently spoke with InvestorCOM’s Parham Nasseri to discuss Regulation Best Interest (Reg BI), specifically: What we can take away from the initial round of Reg BI exams. What hints the regulators have given about how they plan to approach the next round of Reg BI exams. Why regulators are […]
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Recently, InvestorCOM had the pleasure of speaking with Tom Selman, Founder of Scopus Financial Group and former Executive Vice President of FINRA’s Regulatory Policy Division. In this dialogue, Tom discusses the emergence of Reg BI, what we’ve learned to date, and what firms should focus on. *** Parham Nasseri (PN): Tom you’re a […]
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Under the Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI) rule, broker-dealers (B-Ds) are mandated to act in the clients’ best interest. To do this, they must adhere to their obligations of disclosure, care, conflicts of interest, and compliance. With the regulations now in effect, B-Ds have taken steps to achieve various degrees […]
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The Client Focused Reforms and the introduction of the new KYP requirements place an explicit obligation on firms to reasonably assess, approve and monitor the securities (or products) made available to clients for significant change. Given the principles-based nature of the regulatory expectations, the ‘reasonable’ actions taken by each firm will depend on a number […]
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On March 3, the SEC’s Division of Examinations (DOE) released its eighth annual publication, highlighting the 2021 examination priorities. The report outlined the key risks, trends, and priorities to improve compliance and enhance investor protection. While much of the priorities resembled last year’s report, the 28 pages serve as a healthy reminder for those functioning […]
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Over the past twelve months, InvestorCOM has hosted several forums for firms to exchange ideas on how they plan to meet the new KYP and enhanced suitability requirements of the Client Focused Reforms (CFRs). These discussions have provided many of our clients with insights on how to implement the requirements with confidence. Recently, Debra Foubert, […]
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Over the course of the Client Focused Reforms (CFR) journey, InvestorCOM has hosted a series of virtual forums for wealth management leaders to better understand the nuances of the regulation, openly discuss compliance challenges, and consider viable strategies for meeting the regulations. Anchored by these discussions, on February 2 2021, InvestorCOM hosted leading industry experts, […]
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With more than six months since the Regulation Best Interest compliance deadline, a heightened sense of anticipation is brewing around what wealth firms should expect in 2021. In retrospect, the Reg BI journey thus far has been riddled with uncertainty around what steps B-Ds needed to take to ensure compliance. During this period, some firms […]
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Reg BI’s Care Obligation requires a financial professional to consider reasonably available investment alternatives (RAA) offered by the broker-dealer (refer to “Reg BI’s Care Obligation and Reasonable Alternatives” for more information on this topic). While some may have implemented an RAA process for assessing mutual fund and ETF recommendations, Variable Annuities (VAs) may present yet […]
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Last week, the MFDA and IIROC published their much-awaited versions of the Client Focused Reforms (CFRs) (MFDA’s publication – IIROC’s publication). These versions are aimed to amend the Self Regulatory Organization’s (SRO’s) rules to adhere to provincial regulators’ requirements. The combined efforts of the provincial regulators and the SROs are intended to result in a […]
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