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Wall Street Broker Conflict Rules Approved by Divided SEC (1)

June 5, 2019, 9:42 AMUpdated: June 5, 2019, 4:55 PM

Wall Street’s main overseer approved new conflict-of-interest rules for brokers, a sweeping regulatory overhaul that has drawn criticism from investor advocates for being too lax.

The measure, approved by a divided U.S. Securities and Exchange Commission June 5, requires brokers to act in the “best interest” of clients. What that actually means, however, remains in dispute and the changes are unlikely to end a decade-long fight over the protections.

SEC Chairman Jay Clayton said at a public meeting June 5 that the agency’s action will “enhance the quality and transparency” of services that financial firms provide clients, particularly when it...

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