Brokers aren’t advisers, and under the new Regulation Best Interest, they can’t claim otherwise.
Regulation Best Interest was recently given the thumbs up from the Securities Exchange Commission. Under the new rule, a financial “adviser/advisor” must be dually registered as an investment adviser. A broker who guides clients would not fall into this category, even if they present themselves as being a guiding force for clients.
Reg BI is requiring several disclosures from brokers to their customers. These ever-strengthening requirements are reminiscent of the UK, where advisers have to provide charging statements in the name of full transparency. The industry as a whole is highly regulated.
Reg BI is just another step forward in allowing clients to truly asses the value of the financial services professionals in their lives.
The question is, are the professionals ready for the curtain to drop?
