The SEC’s BI Rule is a Mess

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The SEC's BI Rule is a Mess


The SEC's best interest rule has been giving brokers headaches almost since the demise of the DOL rule. Many groups have commented on the rule's failing, including its governance on the use of titles and its deeply confusing attempt at delineating between brokers and advisors. However, one of those gripes now seems to have played out in practice, as early results from the SEC's testing of its Customer Relationship Summary form ( CRS ) has essentially failed. According to the chief of the firm hired to do the study for the SEC, "Overall, participants had difficulty throughout the proposed CRS with sorting out the similarities and differences between the broker/dealer services and investment advisor services, and integrating this information across sections".

FINSUM : This supports exactly what everyone in the industry has been saying-the rule is totally confusing and does nothing to help consumers. The SEC is going to have to do a major rewrite.

  • SEC
  • DoL
  • best interest
  • crs
  • disclosure
  • brokers

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Wealth Management
Referenced Symbols: CRS

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