Regulation Best Interest: Policy and Compliance Series

February 10-11, 2020

The McCombs School of Business, through its newly established Salem Center for Policy, hosted a two-day conference on Regulation Best Interest (Reg BI) The event brought together current and former government officials, industry experts, and academic researchers to engage in a series of dialogues on how the new regulation will impact securities brokers and registered investment advisors. The program was designed for financial advisors, compliance officers, and business leaders at these firms who are seeking to understand how to implement and comply with the new standard of conduct, Form CRS, and interpretive guidance.

Speakers from the SEC, FINRA, SIFMA, CFP Board, leading law firms and universities, and the financial services industry discussed the underlying market issues that led to the new rules, how the measures are intended to impact investor relationships with brokers and investment advisors, and the likely compliance challenges. Participants also gained insight on how the new rules might shape their business environment, including the impact on the use of technology, the potential effect on investor behaviors, and litigation risk.

Video Coverage

How will Reg BI shape industry practices? A discussion of how the financial services industry will need to adapt to sweeping new rules governing the giving of investment advice.

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Jim Burns (moderator), Dan Kahl, Ira Hammerman, Tom Selman, Leo Rydzewski

Assessing the economic impact: Remarks by SP Kothari on the SEC’s economic analysis of the new rules followed by a discussion with a former Chief Economist on how the economics of giving advice has changed.

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Scott Bauguess (moderator), SP Kothari, Chester Spatt

On the policy and politics of the regulatory landscape: A discussion of the events and politics that led to this point. Hear views on how the new policies and practices will develop.

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Jason Zweig (moderator), Dan Gallagher, Andrea Seidt

Keynote address: “Influencing Investors” How investor decisions are affected by the way information is presented to them.

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Brad Barber

Understanding the new rules: A review and discussion of Regulation Best Interest, Form CRS, and interpretive guidance to broker dealers and investment advisers.

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Diane Blizzard (moderator), Christopher Gilkerson, Jennifer Morton, Emily Russell, Sarahten Siethoff

Potential areas for compliance focus: Areas where compliance officers and staff at investment advisers, securities brokers, and wealth managers may experience challenges in understanding and applying the new rules.

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Jay Baris (moderator), James Anderson, Tom Selman, David Peavler

How will investors respond: How will investors change their behaviors in response to how the industry applies the rules? What will be the impact on the financial services industry?

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Jennifer Juergens (moderator), Rick Fleming, Jonathan Reuter, Dana Rhodes

Keynote address: “The Long Road to Regulation Best Interest” Buddy Donohue twice served at the SEC, most recently as Chief of Staff to SEC Chair Mary Jo White, and previously as the Director of Investment Management under Chairman Chris Cox.

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Andrew (Buddy) Donohue

Culture and ethics: How will the professional practice need to adapt? More than just setting a new standard of conduct, the new rules reflect a need to revisit the ethics of investment advising. It’s not just about finding the bright lines to toe.

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Jonathan Cohn (moderator), Niki Boyson, Ryann Marotta, Micah Hauptman

How will the rules impact the use of technology in delivering advice? The use of low-fee tools that offer automated investment advising, a.k.a. robo-advisors, has been rapidly increasing. Panelists will discuss how the new rules could impact these platforms.

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James Spindler, Aaron Gubin, Ken Joseph, Harvey Westbrook

Enforcement and litigation risk: Experts will discuss litigation risk and how and where the new rules could create new exposures.

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Jennifer Marietta (moderator), Rob Cohen, Kit Addleman, Anthony Kelly