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Securities Law

Democrats Urge SEC to Toughen Broker Conflict-of-Interest Rule

Sept. 12, 2018, 7:28 PM

House and Senate Democrats are calling for the Securities and Exchange Commission to add stronger protections for investors to its proposed broker conflict-of-interest rule.

A Sept. 12 letter to SEC Chairman Jay Clayton urges the commission to revise its Regulation Best Interest proposal to say brokers should have a fiduciary duty to their clients, as investment advisers do. The letter was signed by 35 lawmakers, including Rep. Maxine Waters (D-Calif.), the ranking member of the House Financial Services Committee, and Sen. Sherrod Brown of Ohio, the top Democrat on the Senate Banking Committee.

“Regulation BI,” which would direct brokers to...

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