Insights

Regulation Best Interest should be upheld because it "reasonably balances" the Securities and Exchange Commission's regulatory objective, and reflects the agency's concern that "requiring broker-dealers to conform to a regulatory regime that is tailored to the services and fee arrangements offered by investment advisors would reduce the availability of brokerage services," attorneys for the agency told an appeals court Tuesday.

FINRA seeks comment on a proposal to implement the recommendations of the Securities Industry/Regulatory Council on Continuing Education (CE Council) enhancing the continuing education requirements for securities industry professionals. The proposal would change the following: Regulatory Element to provide annual training, make the content more relevant, incorporate diverse instructional formats, publicize the learning topics in advance and enhance the related management systems; Firm Element to expressly recognize other training requirements, improve the guidance and resources available to firms and establish a content catalog; and Continuing Education Program to enable individuals who terminate their registrations the option of maintaining their qualification by completing continuing education.

The SEC announced the opening of registration for its compliance outreach program's national seminar for investment companies and investment advisers. The event is intended to help Chief Compliance Officers (CCOs) and other senior personnel at investment companies and investment advisory firms enhance their compliance programs for the protection of investors.

On June 5, 2019, the SEC adopted Regulation Best Interest ("Regulation BI") to improve investor protection by establishing a standard of conduct for broker-dealers making recommendations to retail customers. Firms must bring their operations into compliance by June 30, 2020. On January 10, 2020 and February 11, 2020, the SEC Staff published and then supplemented responses to a series of Frequently Asked Questions ("FAQs") it has received regarding Regulation BI.