Compliance Newsflash – June 19, 2019

June 19, 2019

SEC Adopts Regulation Best Interest and Form CRS; Issues Investment Advisers Act Interpretations

On June 13, 2019, Sidley reported that on June 5, 2019, the U.S. Securities and Exchange Commission (SEC), by a 3-1 vote, adopted two rules and two interpretations related to the standard of conduct requirements for broker-dealers and investment advisers: 

  1. Regulation Best Interest (Regulation BI), a new rule imposing a “best interest” standard of conduct on broker-dealers making recommendations to retail clients (compliance date: June 30, 2020)

For more information, click here.

SEC Seeks Public Comment on Ways to Harmonize Private Securities Offering Exemptions

On June 18, 2019, the Securities and Exchange Commission (SEC) requested public comment on ways to simplify, harmonize, and improve the exempt offering framework to expand investment opportunities while maintaining appropriate investor protections and to promote capital formation. “We are taking a critical look at our exemptions from registration to ensure that our multifaceted private offering framework works for investors and entrepreneurs alike, no matter where they are located in the United States,” said SEC Chairman Jay Clayton.  “Input from startups, entrepreneurs and investors who have first-hand experience with our framework will be key to our efforts to analyze and improve the complex system we have today.”

For more information, click here.