Broker Conflict Rule Proposal Assailed by Former SEC Economists

  • Ex-agency officials cite ‘weak’ economic analysis in letter
  • Chairman Clayton has made ‘best interest’ measure a priority
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The U.S. Securities and Exchange Commission plan for overhauling broker conflict-of-interest rules is coming under fire from an unusual source: a group of its former top economists.

In a sharply-worded comment letter, 11 former SEC officials faulted the proposal released last April under the direction of Chairman Jay Clayton, citing what they called “weak and incomplete” economic analysis.