The Securities and Exchange Commission will vote June 5 on whether to adopt Regulation Best Interest, according to an SEC meeting notice.
The commission will also decide on June 5 whether to adopt new and amended rules and forms to require registered investment advisors and registered broker-dealers to provide a brief customer relationship summary, or Form CRS, to retail investors, and whether to publish a commission interpretation of the standard of conduct for investment advisors.
The SEC will also consider whether to publish a commission interpretation of the “solely incidental” prong of section 202(a)(11)(C) of the Investment Advisers Act of 1940.
The interpretation of “solely incidental” is “a new part of the rulemaking package,” Karen Barr, president and CEO of the Investment Adviser Association, told ThinkAdvisor in a Friday email.
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This section “provides that the term ‘investment adviser’ does not include any broker or dealer whose performance of investment advisory services is solely incidental to the conduct of his business as a broker or dealer and who receives no special compensation therefor,” explains George Michael Gerstein of Stradley Ronon.