- The Increasing Number of Claims Since May
- Taking the Next Steps to Staying Compliant
- Avoiding Claims as an Arbitration Defense
We alerted you earlier this year about the Securities and Exchange Commission (SEC) announcement that it was going to really start cracking down on the Regulation Best Interest (Reg BI) rule after being relatively quiet on the rule since it went into effect in June 2020. The claims filed over the last months seem to support the seriousness of that announcement in a big way.
Reg BI is a fiduciary rule that aims to reduce sales abuses and costly conflicts of interest amongst broker-dealers and investors. According to the Financial Industry Regulatory Authority (FINRA), as of the end of May this year there have already been 37 Reg BI claims filed by investors. This marks the first time that complaints tied to Reg BI have been on the top 15 list of most cited violations.
Combine the current challenging market conditions and potential losses in clients’ portfolios with investors’ growing awareness of the Reg Bi rule… and you have an environment that demands you stay within the guidelines as a fiduciary. Therefore, it’s more important than ever to make sure your broker-dealer is staying compliant and that you are not being asked to push investment products that could cast you in a suspect light. Moving forward, we anticipate continuing to see a rise in the number of Reg BI claims as investors may start using it as a defense in arbitration.
As an industry-leading Transition Specialist, 3xEquity knows that there are a host of leading national, regional, and local broker-dealers eager to help advisors find a new and better home — one that keeps them clear of conflicts of interest. So please take a critical look at your broker-dealer and make sure they’ve taken the steps necessary for staying compliant and meeting the Reg BI requirements. If you’re not sure, that’s a big warning sign. You don’t want to be at a firm where you have to constantly be looking over your shoulder and looking for red flags.
What should you do if you have concerns about the Reg BI rule and your current broker-dealer? Start exploring your options with 3xEquity. We let you see what else is out there without any risk or cost to you. In a matter of days, we will provide you with multiple offers from leading broker-dealers and then help you through the entire process. We’ll help make sure you end up in a spot where Reg BI won’t be a constant concern and that you are getting the type of support you need to grow your business. Don’t let your broker-dealer tarnish the relationships you’ve worked hard to build, find a better home for your business today. Fill out the form below to start your search for a better broker-dealer.
