Members of the U.S. House Committee on Financial Services, under its newly emboldened Democratic leadership, held a March 14 hearing that looked dubiously at the SEC’s proposed Regulation Best Interest.  What prompted the hearing is the fact that the SEC, at least as of now, is developing a principles-based way to upgrade suitability rules, rather than a fiduciary standard like the now-defunct Department of Labor (DOL) approach.

Entitled “Putting Investors First?  Examining the SEC’s Best Interest Rule”, the hearing also was an opportunity to air proposed legislation that would require the SEC to test the effectiveness of its disclosure requirements—whether or not they relate to Regulation Best Interest—before they take effect.

Further information is available HERE.  Hearing details, including witness testimony, is available on the Committee on Financial Services web site HERE.