Compliance Newsflash – June 26, 2019

June 28, 2019

SEC Adopts Regulation Best Interest and Issues Interpretive Release on the “Solely Incidental” Exclusion 

On June 21, 2019, Ropes & Gray reported that on June 5, 2019, the U.S. Securities and Exchange Commission (SEC), adopted two rules and published two interpretations “designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers.” This Alert discusses the Regulation Best Interest adopting release and the SEC interpretive release regarding the “solely incidental” prong of the broker-dealer exclusion from the Advisers Act. 

For more information, click here.

Rep. Waters Seeks to Block SEC Regulation Best Interest

On June 24, 2019, House Financial Services Committee Chairwoman Maxine Waters, D-Calif., wants to block the Securities and Exchange Commission from enforcing Regulation Best Interest. Waters offered an amendment to the Financial Services and General Government Appropriations Act of 2020, H.R. 3351, to prohibit the SEC from using funds to enforce Reg BI.

For more information, click here.