Archive for August 8th, 2019

August 8, 2019

Lazaro Authors Op-ed on SEC and State Fiduciary Rules for Brokers

Professor Lazaro authored an op-ed which discussed the shortcomings in the SEC’s recently adopted Regulation Best Interest, as well as the states’ interests in adopting regulations governing broker-dealer standards of conduct.  The op-ed, “Reg BI isn’t the cure we needed,” was published in Financial Planning.

Christine Lazaro

The following is an excerpt from the op-ed:

The SEC rule continues to ignore the reality that exists in the marketplace — brokers are seen by their clients as trusted advisors. Reg BI contains the brokers’ duties only to the time of the recommendation; ignoring the ongoing reliance a client has on a broker to monitor the account and investments. Reg BI disclaims any ongoing duty on the part of brokers, which means it moves further away from client expectations rather than aligning the duty with expectations.

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