SEC Issues Proposed Rules for Best Interest Standard

On Wednesday, April 18, the US Securities and Exchange Commission, by a 4-1 vote, approved issuance of proposed rules to address standards associated with sales of securities products to retail investors.

The SEC action came in the form of three proposed rules:  (1) a proposed Regulation concerning Best Interest Standards; (2) Required Disclosures in Retail Communications and Restrictions on the use of certain Names or Titles; and (3) a Proposed Commission Interpretation regarding Standards of Conduct for Investment Advisers.

Copies of the proposed rules are set forth below through the following links:

  1. Regulation Best Interest.
  1. Required Disclosures in Retail Communications and Restrictions on the use of certain Names or Titles.
  1. Proposed Commission Interpretation regarding Standards of Conduct for Investment Advisers.

Please bear in mind that these proposals, in some instances, exceed 400 pages.

CEFLI will continue to monitor developments associated with the SEC’s efforts to develop a best interest standard applicable to sales of securities products to retail investors.

Please also be advised that CEFLI will be conducting a Summit Meeting to explore The Future of Sales Standards in the Life Insurance Industry in Chicago on May 1.  A review of the SEC proposals will be part of that discussion.

We hope you may be able to join us!