Bloomberg: Wall Street Broker Conflict Rules Approved by Divided SEC
SEC Chairman Jay Clayton said at a public meeting Wednesday that the agency’s action will “enhance the quality and transparency” of services that financial firms provide clients, particularly when it comes to disclosing conflicts.
He added that the rules, which are similar to a version that the SEC first proposed in April 2018, clears up confusion customers have regarding the different codes of conduct that apply to brokers and investment advisers. Clayton also disputed criticisms that the plan fails to enhance investor protections.
Republican Commissioners Hester Peirce and Elad Roisman joined Clayton in supporting the measures, which haven’t been publicly released. Robert Jackson, the lone commissioner in a Democratic seat, dissented.
The regulations — which will affect tens of millions of investors who buy stocks and bonds to save for college, retirement and new homes — have won widespread backing from financial firms.
Brokers will “finally have a rule that says you can’t put the firm’s interest ahead of the client,” said Christopher Iacovella, who represents regional brokerages as chief executive officer of the American Securities Association. Wall Street’s main trade group has also lauded the effort.
To read the full article, click here.