SEC Votes in Favor of a Disclosure-Based Approach to Mitigating Conflicts of Interest

Yesterday, the Securities and Exchange Commission (SEC) voted in favor of adopting a final amended version of the Regulation Best Interest rulemaking package. The commissioners voted 3-1, with Commissioner Robert Jackson Jr., the lone Democrat, dissenting on each of the package‚Äôs four provisions: the controversial Regulation Best Interest, the Form CRS Relationship Summary, the Standard of Conduct for Investment Advisers and a new Interpretation of “Solely Incidental.” The new regulations are set to take effect on June 30, 2020.

Click on the link below for the full SEC communication.

SEC Press Release

Regal and Regulus will be monitoring this situation closely. We fully expect some more political maneuvering and changes before the implementation deadline next year. We will be working with our consultants and industry contacts to revamp our client facing paperwork to keep you in compliance. There is no action on your part at this time. However, please note that this new Regulation Best Interest initiative will change our paperwork, potential sales practices, as well as procedures shortly upon implementation.

Thank you for your affiliation, and watch for future bulletins from the Regal/Regulus staff.

John Kailunas II
Founder
Regal Financial Group / Regal Investment Advisors / Regulus Advisors

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