Amid concerns that the Securities and Exchange Commission has not done a proper economic analysis of its advice standards package, including Regulation Best Interest, its chairman said Monday the rule would be well-scrutinized.
“I’m very confident that the economic analysis that will accompany a final rule in the space will be robust,” SEC Chairman Jay Clayton told reporters on the sidelines of the Practising Law Institute’s annual SEC Speaks conference in Washington.
SEC Commissioner Robert Jackson said on March 14 that the commission’s “economic analysis was not a serious attempt to understand the effects of the rule,” leaving it open to legal attacks. He said that, while he had voted to put the package out for comment, he couldn’t support it in its current form.
“Fundamentally, this can and should be a bipartisan rulemaking at the commission,” Jackson said Monday at the SEC Speaks event. “That’s why I voted for the proposal and that’s why I’ve been working so hard to get there on the final.”
Jackson added that he remains “very, very hopeful that the four of us, or five of us, whatever the case may be [can] get there. That’s so important because a rule like this is going to be long litigated, not just in the D.C. Circuit.”
Clayton told reporters that a final vote on Reg BI was “on our agenda to get done before September,” signaling also that the agency will not wait to vote on the three-pronged plan until a confirmation of a newly nominated commissioner, Allison Herren Lee.
“In my time at the commission, I think we’ve had five different configurations of the commission,” Clayton said to reporters. “Who knows?”