Compliance Newsflash –August 7, 2019

August 8, 2019

SEC Chairman Clayton Announces Event for Main Street Investors in Chicago

On August 5, 2019, Securities and Exchange Commission Chairman Jay Clayton announced an event for Main Street investors to be held in Chicago on Thursday, August 15. Chairman Clayton will participate in a roundtable with Main Street investors as part of the SEC’s ongoing investor engagement and education efforts. The roundtable will focus on issues relevant to Main Street investors, such as tips to avoid fraud, the impact of fees and costs, and the key differences between broker-dealers and investment advisers. It is the latest in a series of investor engagement and education events that included a previous investor roundtable held earlier this summer in Boston.  Director Lori Schock from the SEC’s Office of Investor Education and Advocacy is expected to join Chairman Clayton at this event.

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5 Major Takeaways from SEC’s New Investor Protection Rule – Thought Leaders

On August 7, 2019, reported that it seems that the controversies surrounding SEC’s newly adopted Regulation Best Interest rule (Reg BI), would continue to take center stage, even though it goes into effect next summer. The regulation is the culmination of a decade-long process that started in 2010, immediately after the great recession. The Dodd-Frank Act passed that same year authorized the SEC under section 913 to enact a fiduciary standard and best of interest rule to govern broker-dealers and investment advisors when engaging with private investors. 

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