The Securities and Exchange Commission will vote on a final standards of conduct package for brokers and advisors likely during the first half of 2019, David Grim, former director of the SEC’s Investment Management Division, said Thursday.
Grim, now a partner at Stradley Ronon in Washington, said on a webcast held by the law firm that while he’s confident a plan will be adopted by the commission, “there’s lots of variables around” getting there.
Changes will likely be made to Regulation Best Interest for brokers and the Customer Relationship Summary disclosure form, or Form CRS.
While a majority of the commissioners will need to support the multi-pronged plan, SEC Chairman Jay Clayton “has been very clear that this continues to be a priority of his,” Grim said.
Commissioner Kara Stein, a Democrat, voted against the plan when it was released for comment in April, so “it’s not likely” she’d support it. But Stein will be leaving the commission by the end of 2018, Grim pointed out.
As to Commissioner Robert Jackson, also a Democrat, Grim stated it will likely “be hard” for him to support a final plan. While Jackson did vote to release the proposal for comment, “what little he has said has not been very supportive.”