There is speculation that the Department of Labor (DOL) may issue a draft Fiduciary Rule in the near future, given the appointment of Lisa Gomez to the Employee Benefits Security Administration confirmed by the Senate last fall. The industry expects the proposal to redefine when financial professionals are deemed fiduciaries, and therefore held to a higher standard of care.
In conjunction, the SEC and FINRA are expected to place greater focus on broker-dealer adherence to Regulation Best Interest (Reg BI) in 2023. Reg BI establishes a "best interest" standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
As part of the rulemaking package, the SEC also adopted new rules and forms to require broker-dealers and investment advisors to provide a brief relationship summary, Form CRS, to retail investors.
Dissemination of this information to investors and responding to inquiries related to the customer relationship summary may pose a challenge for some firms due to high volume or lack of appropriate resources. The use of a third party with expertise and experience in comprehensive solutions for time-sensitive event management is a solution the broker-dealer community may consider for regulatory compliance.
For many firms, it makes sense to use a partner that has almost 30 years of experience in delivering solutions that have:
- Project management and consultation expertise
- Print mail coordination
- Inbound and outbound call center support
- Scalable staffing
- Strong enterprise security
- Response management
SS&C has a proven track record of successfully managing complex events across the financial services industry, with scalable solutions that help you stay focused during challenging events, and stay compliant in the face of changes in regulatory requirements. If you’re facing a regulatory compliance event or some other time sensitive business need that requires specialized expertise or additional resources, download our "Event Center Overview" brochure to learn more or contact us.