The Securities and Exchange Commission voted today to adopt Regulation Best Interest in a 3-1 vote.
The three-fold rulemaking package, which debuted last April went up for a vote this morning as Chairman Jay Clayton and Commissioners Elad Roisman, Robert Jackson, Jr. and Hester Peirce gave their final thoughts on the matter before the vote.
The first to speak, Commissioner Jackson dissented, “My hope was that the rules we announce today would increase investor protections. … Sadly, I cannot say that. Today’s rules maintain a muddled standard.”
Commissioner Peirce opened her remarks saying, “I believe the balance we have struck is a good one.”
Newly appointed Commissioner, Elad Roisman, was the last commissioner to speak. He offered his support, adding that he felt the proposed rules struck the right balance.
Commissioner Roisman noted that the implementation of Reg BI “will not come without cost or burden” adding that he felt the benefits far outweighed the costs.
In addition to enacting Reg BI, the Commission voted to approve Form CRS in a 3-1 vote. Commissioner Jackson was the only one to vote no on the disclosure form.
The last vote from the proposed package was whether to issue an interpretation on the standard of conduct for investment advisers. The Commission voted 3-1 to issue an interpretation of the standard included in the Investment Advisers Act of 1940.
The final vote for the day and a late addition to the agenda was whether to issue an interpretation on the "solely incidental" clause of the Investment Advisers Act of 1940. Added to the docket in late May, The SEC voted 3-1 to issue an interpretation of "solely incidental."
Clayton said during opening remarks that the SEC will establish committees to assist firms with implementation of the adopted rules. Clayton added that the SEC will also roll out a Main Street investor education campaign, aimed at helping investors understand the difference between broker-dealers and investment advisors.
AdvisorNews Managing Editor Cassie Miller may be reached at [email protected] Cassie has an extensive background in magazine writing, editing and design. Follow her on Twitter @ANCassieM.