Posted on June 26, 2019

House Votes to Deny Reg BI Implementation, Enforcement Funding

WASHINGTON, D.C. -- The Insured Retirement Institute (IRI) issued the following statement following a vote by the House of Representatives to prohibit funding for the implementation of the Securities and Exchange Commission’s Regulation Best Interest.

“We are disappointed in today’s vote in the House of Representatives to advance legislation that includes a provision to prohibit the Securities and Exchange Commission from proceeding to implement, administer, enforce or publicize Regulation Best Interest.

Congress should allow the implementation of Reg BI to move forward and it should be given time to work. This newly adopted rule raises the standard of conduct for financial professionals, expressly requiring them to act in their clients’ best interest.  

Reg BI represents a substantial strengthening of consumer and investor protection compared to existing law. It requires all financial professionals including those that work for and with IRI member companies, to operate under a new, more stringent and robust regulatory regime that imposes considerable new responsibilities on financial professionals and firms. These include requiring companies to evaluate and potentially make significant investments in systems, policies, procedures and training to ensure compliance with new regulations. The SEC will oversee this new regulation with a robust set of enforcement tools including investigatory powers and, civil and criminal penalties to ensure compliance with SEC and FINRA regulations.

Should efforts to block Reg BI prove successful, the consequence will be to delay and deny American investors of the enhanced protections provided by this rule."

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Contact: Dan Zielinski