SEC Commissioner Robert Jackson said Thursday that the economic analysis supporting the agency’s advice-standards package, including Regulation Best Interest, is too weak and that it will face legal attacks.
Noting that he voted to put the proposed rule out for comment, Jackson stated that he made “very clear” last year that he couldn’t support the plan “as a final rule.”
As it stands now, with industry officials anticipating a final rule by the end of summer, Jackson, responding to questions at the Investment Adviser Association’s annual compliance conference in Washington, said the agency still “has a long way to go.”
Karen Barr, IAA’s president and CEO, who was interviewing Jackson, asked him if a final rule would be out by the next quarter.
Jackson noted that the shutdown pushed back the agency’s agenda somewhat, but that “I think you’re right to think about [a final rule] in the next quarter or so,” adding that the SEC staff “will have to really dig in” to get something before the commission by that time.
“For me one of the things about the proposal was that our economic analysis was not a serious attempt to understand the effects of the rule,” Jackson said.
“We did not make any serious attempts to understand the costs and benefits for investors” of the rulemaking, Jackson told attendees.