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FSI Wants Disclosure Regime for SEC’s Fiduciary Rule

November 3, 2017

FSI Wants Disclosure Regime for SEC’s Fiduciary Rule

November 1, 2017 | Alex Padalka | Financial Advisor IQ

The Financial Services Institute has suggested the SEC take a disclosure approach in drafting a uniform fiduciary rule as an alternative method to the best interest contract exemption put forth by the Department of Labor, ThinkAdvisor writes.

In a comment letter to the SEC, David Bellaire, FSI’s general counsel, says the regulator should use a two-tier client disclosure regime that would combine a concise document at the point of sale with a more comprehensive and detailed disclosure on the financial firm’s website, according to the publication. The first tier would inform investors of the most critical information at a time when it’s most useful, according to the letter cited by ThinkAdvisor.

Bellaire suggests this could include a statement on the firm’s best interest standard of care, nature and scope of the relationship between clients and the company, and a “general description” of the compensation going to the firm and the financial advisor, according to the publication.

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Second Annual Blue Vault Broker Dealer Educational Summit 2016
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