ASA Applauds Rep. Donalds Letter to the SEC

Calls on the agency to avoid undermining Reg BI

WASHINGTON, D.C. – Today, the American Securities Association (ASA) applauded Representative Byron Donalds (R-FL) for sending a letter to the U.S. Securities and Exchange Commission (SEC) calling on the agency to detail a number of different costs associated with Regulation Best Interest (Reg BI).

Reg BI was finalized in June 2019 after an exhaustive, years-long examination of broker-dealer standards of conduct by Congress and the SEC. Reg BI increased investor protections and established a national standard of conduct for broker-dealers when they make investment recommendations to their customers.

“We commend Rep. Donalds for his outspoken leadership on this critical issue,” ASA CEO Chris Iacovella said. “Congress is right to have concerns that this SEC seems to be on a crusade to weaken the investor protections in Reg BI. Rewriting Reg BI would frivolously waste taxpayer money, setback every American seeking financial independence, and end investors’ personal choice over how to invest their money. ASA opposes any changes to a rule that works.”

ASA has been at the forefront of advocating to improve accountability throughout the financial industry and implement Reg BI. In 2020, ASA commended the U.S. Court of Appeals for the Second Circuit for ruling to uphold Reg BI in its decision in XY Planning Network, LLC v. SEC, and Iacovella penned an op-ed in InvestmentNews outlining how Reg BI strengthens investor protections.

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