SEC Proposes Standards for Broker-Dealers and Investment Advisers

On April 16, 2018, the Securities and Exchange Commission (the “SEC”) adopted three new proposals for standards that would apply to broker-dealers and investment advisers in dealing with retail customers.  Regulation “Best Interest” would apply to broker dealers.  Another release would interpret and enhance the “fiduciary” standard applicable to investment advisors.  Finally, the third release proposes standards in disclosure to retail investors before taking them on as customers.  Comments are due by mid-July 2018.  The SEC recognizes that the standards for broker-dealers and investment advisers are necessarily different, but seeks in the proposals to further harmonize them.