House Finance Committee To Hold Hearing On SEC Reg Bi

By John Hilton InsuranceNewsNet

The House Financial Services Committee announced today that a subcommittee hearing will be held on the SEC’s best interest rule on March 14.

The Subcommittee on Investor Protection, Entrepreneurship and Capital Markets will convene a 9:30 a.m. hearing entitled, “Putting Investors First? Examining the SEC’s Best Interest Rule.”

Led by Chairwoman Maxine Waters, D-Calif., the Financial Services Committee is taking a much more pro-consumer direction than the past two years under former chairman Rep. Jeb Hensarling, a Texas Republican who relinquished his seat.

Introduced nearly one year ago, the SEC Regulation Best Interest holds brokers to a best interest standard, with additional disclosures, and restrictions on who can use the titles "advisor" and "adviser."

Critics, which included many Democrats on the House panel, say it does not go far enough. Many in the RIA community were disappointed with the proposal since it does not raise brokers to their tougher fiduciary standard.

SEC Chairman Jay Clayton appeared before the Financial Services Committee twice last summer when Hensarling held the gavel.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.