FOR IMMEDIATE RELEASE
Wednesday, May 29, 2019
Washington, D.C. – Dennis Kelleher, President and Chief Executive Officer of Better Markets, issued the following statement and Fact Sheet in advance of the SEC’s June 5, 2019 meeting to finalize its so-called “Regulation Best Interest” proposal:
“Tens of millions of America’s investors and retirees are losing tens of billions of dollars a year to brokers and other financial advisers who have conflicts of interest and put their economic interests ahead of their clients’ best interest. Unfortunately, the SEC’s so-called ‘Regulation Best Interest’ proposal fails to end those predatory practices or to protect investors and retirees.
“Indeed, as detailed in the attached Fact Sheet, the proposed rule would actually make matters worse for investors: Brokers and other financial advisers will be able to pitch, spin, and sell their products, while claiming that they comply with the ‘best interest’ regulation, even though there is no meaningful substantive duty to act in clients’ best interest. That, combined with other glaring weaknesses and gaping loopholes, is why the financial industry is cheering the SEC’s proposed rule.
“The SEC has noticed a meeting for one week from today to consider finalizing the proposed rule, and we will provide a detailed analysis of whatever action it takes.”
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.