Broker-Dealer and Investment Adviser Account Recommendations (Volume 55, Number 13—July 20, 2022)
Author: Brian J Baltz.; John V. Ayanian.
Source: Volume 55, Number 13, July 15 2022 , pp.139-149(11)
Abstract:
The SEC Staff recently released a bulletin titled “Standards of Conduct for Broker-Dealers and Investment Advisers Account Recommendations for Retail Investors.” In this article, the authors discuss the Staff Bulletin in detail, including observations on the ways in which the Bulletin appears to deviate from the SEC’s guidance under Reg BI and the IA Interpretation. They conclude with factors a firm should consider before making recommendations.Keywords: Gary Gensler; Regulation Best Interest (“Reg BI”); Disclosure Obligation; Care Obligation; Conflict-of-Interest Obligation; Dual Registrants; Documenting the Basis for a Recommendation
Affiliations:
1: McGuireWoods LLP; 2: McGuireWoods LLP.