Trump's SEC Proposes Obama-Era Broker Conflict Rules Rewrite
- Financial regulator unveils plan for ‘best interest’ standard
- SEC approach is softer than Labor Department’s 2016 regulation
This article is for subscribers only.
The U.S. Securities and Exchange Commission on Wednesday proposed overhauling its conflict-of-interest rules for brokers, a move likely ensuring that Wall Street won’t have to comply with much tougher regulations approved at the end of Barack Obama’s presidency.
At a public meeting in Washington, SEC commissioners led by Chairman Jay Clayton voted 4-1 to seek public comment on a “best interest” obligation for brokers. While the standard is stiffer than existing SEC requirements, it’s not as stringent as the fiduciary duty that forces investment advisers to put clients’ interests ahead of their own.