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October 12, 2021 at 11:58 AM
What You Need to Know
- There’s not going to be a Phase 3 of Reg BI exams.
- Registrants have an understanding of what the SEC expects regarding Reg BI.
- Advisor exam coverage came in at 16% year to date, higher than the anticipated 15% rate.
The Securities and Exchange Commission will be incorporating compliance with Regulation Best Interest into its regular exams, John Polise, associate director of the SEC’s Broker-Dealer and Exchange Oversight, said Tuesday.
After completing Phase 1 and 2 of Reg BI exams, the “good news is there’s not going to be a Phase 3,” Polise said during the Practising Law Institute’s SEC Speaks event.
However, that doesn’t mean that Reg BI exams are going away.
“What we’re working on now is we have a high level of fluency in our program of using Reg BI and we believe the registrants have an understanding of what we expect regarding Reg BI so we’ll be integrating it into our regular program and regular exams,” Polise said. “You may not get a ‘Reg BI exam,’” he continued, “but you may have Reg BI components in other exams.”
