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States, Advisers See SEC Broker Conflict Rule Cases Consolidated

Sept. 13, 2019, 3:15 PM

State and adviser suits calling the SEC’s new broker conflicts-of-interest rule too weak are substantially similar and should be consolidated, a judge in the Southern District of New York said.

The complaints, one filed by seven states and the District of Columbia and the other by an investment adviser network, involve the same underlying events, the same operative facts, and the same claims against the Securities and Exchange Commission, Judge Victor Marrero’s Sept. 12 order said.

Both suits raise concerns over Regulation Best Interest, passed in June, which requires brokers to act in the best interests of the client at ...