SEC signals tougher stance on Reg BI, a warning to brokers and advisors

For two years, wealth advisors have demanded answers from the SEC about how it intends to enforce Regulation Best Interest, the 2020 rule that sets a minimum standard of retail client care in financial advice. They are unlikely to be cheered by the Wall Street's regulator's latest guidance.?

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The SEC issued a red alert on Aug. 3 to brokerages and registered investment advisors indicating that it intends to take a tougher stance on the conflicts of interest that plague the retail investing industry. The guidance, part of the SEC's campaign to enforce Reg BI, offers the most specific clues yet to where the regulator will aim its audits and enforcement actions against misbehaving brokers and advisors.

For more: SEC tells advisors to rein in conflicts of interest under Reg BI

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