A recent Think Advisor article cites a recent Morgan Lewis LawFlash examining the US Securities and Exchange Commission’s (SEC’s) newly proposed rules on technology use by broker-dealers and investment advisors and its “broad and potentially burdensome conflict-of-interest requirements” if adopted as proposed.
The article also includes a quote from of counsel Jed Doench, noting that the SEC’s proposal “can be viewed as an indirect expansion” of Reg BI.
“While Reg BI only applies to recommendations (a longstanding and appropriately narrow concept under the securities laws) to retail investors, this new proposal would apply a conflict of interest framework to potentially any communication with a retail investor that is generated by a ‘covered technology,’ which is defined very broadly in the proposal,” Jed explained.