Ford O'Brien, LLP

New SEC Rule: More Disclosure, Less Broker Conflicts

Do you have any real or perceived conflicts of interests? Your answer will be crucial after the Securities and Exchange Commission's adoption of a rule designed to curb conflicts of interests and provide investors with more information about their brokers.  

As reported by The Wall Street Journal, "stockbrokers will be required to act in the best interest of investors and disclose more about conflicts of interest that can skew advice". The SEC "voted to create a duty to investors for brokers that the industry says is higher than its current standard." (Source: "New SEC Rule Heightens Broker Responsibilities to Investors", The Wall Street Journal)

This is only the latest salvo in a 10-year battle over whether and how to regulate the investment advice industry. Only last year, a similar rule from the Obama-era Department of Labor was overturned. This version is considered a win for Wall Street as it still allows brokers to recommend investment products that they profit from as long as they disclose the potential conflict. 

What this means for you

The rule goes into effect on June 30, 2020. Love it or hate it, but don't ignore it. Finding yourself on the wrong side of this new SEC rule can place you in the crosshairs of SEC investigators or, in some cases, federal prosecutors. 

Ford O'Brien, LLP has a proven track record of helping brokers and investment companies stay on the rights side of SEC rules and, when necessary, protect their interests in civil and criminal cases. 

No Comments

Leave a comment
Comment Information

Our Office Location

Ford O'Brien, LLP
575 5th Avenue
17th Floor
New York, NY 10017

Phone: 212-256-9419
Phone: 212-858-0040
Fax: 212-256-1047
Map & Directions

Please Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy