What You Need to Know
- Through May, 37 arbitration cases involved Reg BI breaches.
- In 2022, firms can expect that FINRA will “be doing deeper dives with respect to the standard of care obligation.
- The SEC brought its first Reg BI enforcement action on June 16 against a registered broker-dealer and five of its reps.
Arbitration cases related to the Securities and Exchange Commission’s Regulation Best Interest have, for the first year, made the Financial Industry Regulatory Authority’s top dispute resolution list.
Through May 2022, breach of Reg BI comes in at No. 14 on FINRA’s most recent dispute resolution statistics under the category Top 15 Controversy Types in Customer Arbitrations.
Through May, 37 arbitration cases involved Reg BI breaches.
Brian Rubin, partner at Eversheds Sutherland in Washington, told ThinkAdvisor Monday that with the implementation date for Reg BI kicking in about two years ago, “it takes a while for cases to bubble up.”