A big change could be coming for Reg BI
Reg BI has recently been in the spotlight. With the new SEC chief being toasted by Congress before he is potentially appointed, there is a lot of anticipation about where things might go. Some believe Gensler will move swiftly to change Reg BI, while others (including us) believe it could move slower due to potentially more pressing issues like memes stocks and bitcoin. However, one change that can happen quickly is simple but important: to change the name of the regulation. There is a strong call for the SEC to change the name to Reg BI because many say it is “grossly misleading” as it is not a true fiduciary rule. Gensler could potentially make this change a lot easier than actually changing the rule, so it makes sense that this could be an immediate step to appease critics.
FINAL SUM: What we find interesting here is that the calls to change the name aren’t just coming from fiduciary advocates and the like, but brokers as well. The latter seem to have problems with clients who think they are trustees when they are not, which can then lead to big explosions / lawsuits.
- reg bi
- fiduciary rule
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