SEC Open Meeting on Broker-Dealer and Investment Adviser Standards

On April 12, 2018, the Securities and Exchange Commission (SEC) announced an open meeting scheduled for April 18, 2018 at 3:30 p.m. (ET) to discuss standards applicable to broker-dealers and investment advisers in their dealings with retail investors. The subject matters scheduled to be covered are threefold:

  • whether to propose new and amended rules and forms to require registered investment advisers and registered broker-dealers to provide a brief relationship summary to retail investors;
  • whether to propose a rule to establish a standard of conduct for broker-dealers and natural persons, who are associated persons of a broker-dealer, when those individuals are making a recommendation of any securities transaction or investment strategy involving securities to a retail customer; and
  • whether to propose an SEC interpretation of the standard of conduct for investment advisers.

We anticipate the SEC issuing a proposed rule after this meeting. While the timing of this proposed rule has remained in flux, the SEC’s accelerated efforts are consistent with the SEC’s prioritization of this issue since Chairman Jay Clayton’s appointment, as previously discussed on this blog.  The Fifth Circuit’s recent ruling against the Department of Labor’s fiduciary rule has likely further accelerated the SEC’s efforts.

The SEC’s meeting will be open to the public with seating on a first-come, first-served basis at the SEC’s headquarters, 100 F Street, NE, Washington, D.C. 20549. The meeting will also be webcast on the SEC’s website.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

©2024 Faegre Drinker Biddle & Reath LLP. All Rights Reserved. Attorney Advertising.
Privacy Policy