
The SEC is turning its back on investors and protecting industry profits by finalizing a rule that does not actually require brokers to put investors’ best interest first. Adding insult to injury, the SEC is misleading investors about what the rule does and doesn’t do while enabling brokers to do the same. If the SEC’s own 10b-5 anti-fraud rule applied to the SEC’s own statements about so-called Reg BI, then it would likely have to sue itself for knowingly misleading investors.
No amount of carefully crafted, Orwellian spin from the SEC will be able to hide the stain that this rule will leave on the history of the SEC. If a truth-in-labeling law applied to the SEC, then this rule would be called “Broker Profits First, Investors’ Savings Second,” as we detailed more in this Op Ed in The Hill: New SEC rule aids and abets Wall St predators.