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SEC Seeks to Require Brokers to Put Their Clients First - ABI

In a long-expected move that would affect the roughly 43 million households with brokerage or retirement accounts, the Securities and Exchange Commission voted yesterday to propose rules that would require brokers to put their customers’ financial interests ahead of their own, the New York Times reported. But not everyone is convinced the rules — if passed as proposed — would go far enough to improve consumer protections, including some of the SEC’s own commissioners. Some of the five commissioners said that they had concerns with different pieces of the proposal, suggesting that it may be difficult for them to coalesce around a final rule. Kara M. Stein, an SEC commissioner, called the proposed rules a squandered opportunity to provide meaningful change, and suggested a new name for the proposal, now called Regulation Best Interest.

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