Firms Should Stay Course Amid New Broker Standard Suits
Ghillaine Reid and Kurt Wolfe recently wrote an article for Law360 titled, “ Firms Should Stay Course Amid New Broker Standard Suits.” The article focuses on developments relating to Regulation Best Interest, which the U.S. Securities and Exchange Commission adopted in July 2019. Regulation Best Interest “enhances the standard of conduct for broker-dealers that provide investment advice to retail investors by expanding on existing suitability requirements,” but a series of recent challenges threaten to set the rule aside. Reid and Wolfe advise broker-dealers that are developing a compliance framework around the rule to stay the course. “[B]y designing and implementing policies and procedures that comply with the most restrictive regulatory requirements, firms can establish a single internal standard that applies to securities transactions in all jurisdictions where the firm recommends securities transactions or investment strategies to retail investors.” Like and share on LinkedIn.