SEC Broker Conflict Rule Stands, Authorized by Dodd-Frank (1)

June 29, 2020, 3:01 PM; Updated: June 29, 2020, 5:06 PM

Groups challenging the SEC’s new rule on broker-dealer conflicts of interest lost their bid to have the regulation tossed after the Second Circuit determined it wasn’t arbitrary or capricious.

The Dodd-Frank Act also gave the Securities and Exchange Commission permissive authority to promulgate the rule, the U.S. Court of Appeals for the Second Circuit said June 26. The compliance date for the new regulation is Tuesday, SEC Chairman Jay Clayton confirmed June 15.

Regulation Best Interest, also known as Reg BI, requires brokers to act in a client’s best interests when making a recommendation, without placing their own interests ahead ...

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