Advisor Insights

An SEC Commissioner's Misfires

W. Scott Simon

Hester M. Peirce, one of five commissioners (with one current vacancy) of the U. S. Securities and Exchange Commission, was interviewed recently about the SEC's proposed Regulation Best Interest.

In the interview, Peirce notes that she sees only two differences between the duties required of broker/dealers (under Regulation Best Interest and applicable securities laws to which broker/dealers are subject) and those required of Registered Investment Advisers (under the SEC's proposed Investment Adviser Standard which does not seek to create any new rules or requirements for RIAs but is simply a clarification of already existing duties they must follow). (Note that Regulation Best Interest does not pertain to RIAs and their investor advisor representatives, or to insurance agents or annuity sellers.)