FOR IMMEDIATE RELEASE
Wednesday June 5, 2019
Washington, D.C. – Dennis Kelleher, President and Chief Executive Officer of Better Markets, issued the following statement in response to the SEC’s vote today to finalize its misleadingly labeled “Regulation Best Interest”:
“On the 85th anniversary of the founding of the SEC, the SEC is turning its back on investors and protecting industry profits by finalizing a mislabeled rule that does not 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 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.’
“The inevitable result of this rule will be tens of billions of dollars moved from investors’ pockets into brokers’ bonuses due to the sale of high priced and poor performing products. We look forward to a future when a new SEC returns to its original mission from 85 years ago of putting investors’ best interests first.”
A one-page fact sheet is attached and accessible on line here.
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.