RK&O Client Alert: Update on Status of SEC Regulation Best Interest

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January 4, 2019

As the new year rings in, broker-dealers and their associated persons should not lose sight of the momentous rule change that is expected before year-end. On April 18, 2018, the SEC proposed a new “best interest” standard
of conduct for broker-dealers and their associated persons when making recommendations to retail customers concerning securities transactions or investment strategies involving securities. 

For the many practitioners who may not be following this issue closely, RK&O partners Margaret W. Meyers and Daniel C. Zinman explain what the best interest standard requires, how it differs from the current suitability standard, some of the proposal’s pros and cons and the expected time frame for the SEC to take action.

Click here to read the client alert