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Trump’s SEC Proposes Rewrite of Obama-Era Broker Conflict Rules

April 18, 2018, 9:38 PM

The Securities and Exchange Commission April 18 proposed overhauling its conflict of interest rules for brokers, a move likely ensuring that Wall Street won’t have to comply with much tougher regulations approved at the end of Barack Obama’s presidency.

At a public meeting in Washington, SEC commissioners led by Chairman Jay Clayton voted 4-1 to seek public comment on a new “best interest” obligation for brokers. While the standard is stiffer than existing requirements, it’s not as stringent as the fiduciary duty that investment advisers have to adhere to that forces them to put their clients’ interests first.

In 2016, ...