The SEC’s Investment Adviser Interpretation and Reg BI: The (Partial) Convergence for RIAs and Broker-Dealers
Fred Reish, Partner, Faegre Drinker Biddle & Reath
April 16, 2020
Last year the SEC issued its Regulation Best Interest, which enhanced the duty of care, management of conflicts and disclosures for broker-dealers. At the same time, the SEC issued the Interpretation Regarding Standard of Conduct for Investment Advisers. The Interpretation for investment advisers nominally restates and clarifies the standard of care and the rules about disclosures and conflicts, but in actuality it increases the requirements for RIAs. This program explains the new rules and compares and contrasts their requirements.