Brokers and advisors need to prepare now for Reg BI enforcement from the SEC. Firms must adjust their practices and processes for complying with the Care Obligation and the requirement for financial professionals to assess reasonably available alternatives when making a recommendation. Given the principled-based nature of the requirement, there have been many questions surrounding […]
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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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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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For many wealth management firms, the last few months have gone by in a flash. The combined pressures of working remotely, executing business continuity practices and meeting the Reg BI implementation deadline have kept most teams burning the midnight oil. With the Reg BI implementation deadline now behind us, some may be hesitantly looking back […]
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With Reg BI now in effect, broker-dealers and their representatives will need to illustrate how they are complying with the SEC’s Regulation Best Interest (Reg BI). One of the requirements dealers should pay close attention to is the Care Obligation and the consideration of Reasonably Available Alternatives (or RAA) when making a recommendation. What’s Changed? […]
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