Press Release: ASA Urges SEC to Finalize Regulation Best Interest Proposal

WASHINGTON – The American Securities Association (ASA) today urged the U.S. Securities and Exchange Commission (SEC) to finalize its Regulation Best Interest (Reg BI) proposal to help increase accountability across the financial industry and better protect America’s retail investors and retirement savers.

“ASA’s Main Street financial advisors have and will continue to put our clients first—helping our neighbors develop plans to save for retirement, send their kids to college, and prepare to achieve other family goals,” said ASA CEO Chris Iacovella. “That’s why our Main Street companies have long-supported a best-interest standard. We welcome the first-of-its-kind nationwide SEC rule that strengthens important investor protections while weeding-out the bad actors that tarnish our industry and harm investor confidence. We appreciate Chairman Clayton’s leadership on Reg BI and urge the Commission to swiftly move forward with final adoption.”

The SEC’s Reg BI proposal strengthens investor protections by requiring financial firms and professionals to:

1. Put their customers interests ahead of their own;

2. Disclose key facts, including fees and compensation related to financial products;

3. Exercise diligence, care and skill when making recommendations of investment products to make certain they are in the client’s best interest; and

4. End high-pressure sales practices.

ASA has been at the forefront of advocacy on Reg BI. To read our comment letter to the SEC, click here. To read ASA CEO Iacovella’s recent op-ed in InvestmentNews, click here.