The Securities and Exchange Commission plans to issue a final rule by September 2019 on its standards of conduct package covering investment advisory professionals, according to its updated regulatory agenda.
Karen Barr, president and CEO of the Investment Adviser Association, said in an email Friday that the SEC appears to have used September as a default date for many regulatory items that are new or have changed status. "My bet is that the SEC issues a final rule earlier than that September date," Ms. Barr said.
The proposals, which were approved by the SEC in April and had a comment period that closed Aug. 7, received more than 6,000 comments.
The package includes three legs:
A best-interest standard that compels brokers to put clients' financial interests ahead of their own and requires them to mitigate financial conflicts.
The client relationship summary, or Form CRS, which necessitates that firms disclose to retail investors the nature and scope of their services, the types of fees customers would incur, the conflicts of interest faced by the firm and the firm's disciplinary history.
A standard of conduct for investment advisers that states advisers have a duty to act and provide advice that is in the best interest of the client.