The Securities Litigation Expert Blog

This blog post continues my series on SEC Regulation Best Interest ("RBI") and the DOL Rule.

Yesterday, FINRA published its first Regulatory Notice related to RBI, RN 19-26.  This Notice was relatively unremarkable and essentially set the table for further FINRA guidance on RBI.

FINRA has created a webpage of RBI content for member firms.  Of note was FINRA's hinting at future rule changes:

As with other SEC rules, FINRA will examine for and enforce compliance with Reg BI and, in doing so, FINRA will adhere to SEC guidance and interpretations. FINRA staff expects to work with SEC staff to ensure consistency in examining broker-dealers and their associated persons for compliance with Reg BI. In addition, FINRA will review FINRA rules to see whether changes are needed to align FINRA rules with the SEC’s rulemaking. Any proposed changes to FINRA rules will be filed with the SEC for public comment and available on FINRA’s website.¹  (Emphasis added)

I suspect changes will be coming to FINRA Suitability Rule 2111, which I wrote about here.

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Notes:

1.          FINRA SEC Regulation Best Interest website.  Available at: https://www.finra.org/industry/regulation-best-interest.  Accessed August 8, 2019.

To learn more about fiduciary expert Jack Duval, click here.