National Association of Insurance and Financial Advisors

NAIFA Suggests Changes to SEC Best Interest Proposal

NAIFA has submitted a comment letter to the Securities and Exchange Commission on SEC’s proposed best interest standard. In the letter, NAIFA President Keith Gillies reiterated NAIFA’s support for a best-interest standard of conduct for advisors and firms whose practices involve securities. The letter also lays out several concerns NAIFA has with the SEC proposal.
First, NAIFA urges the SEC to withdraw or revise the rule’s proposed restrictions on broker-dealers and their registered representatives using the titles “adviser” or “advisor.” NAIFA believes the restrictions are not needed. However, if the SEC determines title restrictions are necessary, NAIFA says, it would be more appropriate for the SEC to apply the proposed restrictions to the more specific titles “investment adviser” and “investment advisor.”
Second, NAIFA suggests that the SEC streamline the rule’s proposed disclosure obligations so that they would be more meaningful to consumers.
NAIFA strongly supports the SEC’s role as the primary regulator at the federal level of broker-dealers and registered representatives. “The SEC’s general approach, we believe, will preserve choices for consumers at all income levels and account sizes and should not unnecessarily increase costs for consumers or businesses,” the letter says.
“NAIFA looks forward to working with the commissioners throughout the regulatory process to ensure the final rule is workable for advisors and helpful to middle-market investors,” Gillies said.
  • Posted August 10, 2018 IN
  • Comments (1)

Joe Anthes
Amen to that! Just as in Corporate America, where titles really don't mean all that much or, distinguish what someone specifically does, the same principles apply here. It is becoming a game of symantecs. I would think that the SEC has more important, pressing & viable issues than this, that deserves their immediate attention!
8/13/2018 12:07:26 PM