The Securities and Exchange Commission “really encourages engagement” as the agency implements Regulation Best Interest, the agency’s Chairman, Jay Clayton, said Tuesday.
“I want to know: Have we preserved choice?” Clayton said during a question-and-answer session at the Securities Industry and Financial Markets Association’s annual conference in Washington. “Choice in a way that provides investors the choice and protection that they deserve and expect?”
Clayton added that “from where we were two and a half year ago to where we are today, I’m extremely pleased. I think we have a set of rules that will really benefit investors, add transparency, add obligations and will benefit our markets. I’m pleased with the progress we made and I think it was long overdue.”
In the run-up to Reg BI, Clayton said, “it became very clear to me that a fee-for-service model is right for some people … and a transaction-based model is right for others.”
Ken Bentsen, SIFMA’s president and CEO, who was interviewing Clayton, said SIFMA agreed with his assessment of Reg BI. “It’s a tough rule, and we’re digging through it; a lot of work’s being done on it,” Bentsen said. “We think it was the right thing.”