Legal Seminar, Chicago, IL

• The “fiduciary standard” that the DOL implemented for ERISA and IRA accounts has been attacked in court and by the Trump Administration and is dead. • DOL Rule was intended to avoid conflicts of interest or at least mandate better disclosure of same. • After 8 years the SEC finally got in the game with the release of proposed Regulation Best Interest (“BI”) on April 18, 2018. On June 5, 2019, the SEC Commission, in a divided vote adopted BI and additional regulations.

• Requires brokers to act in the “best interest” of clients without placing their financial interest ahead of customers. • Four obligations – disclosure, care, conflict and compliance. • Commissioners also provided fiduciary interpretation of RIA’s so that they don’t place their interest ahead of customers. • There still are differences between standards for brokers, ITCs and RIAs. • Compliance date for BI is 6/30/20.