The SEC wants to hear from you by Tuesday, Aug. 7, 2018

The SEC wants to hear from you by Tuesday, Aug. 7, 2018

by Julie Jason on Aug 3, 2018

Your relationship with your financial professional will be impacted by the new regulations the Security and Exchange Commission (SEC) is proposing – either in a big way or small way, depending on the type of professional you work with now. 

You have an opportunity to make a difference. 

At a minimum, you’ll want to read the SEC’s three proposed "Relationship Summaries"  (see below). 

One is for “brokers,” another for ”advisers” and a third for “dually registered” firms.  The goal is to help you understand the differences -- enough so that you better understand who you are working with now – and how to choose who you want to work with in the future.     

  1. “Is a Brokerage Account Right For You?” This disclosure applies to “stand-alone brokers.” Go to: https://tinyurl.com/y7b3kmh3.
  2. “Is An Investment Advisory Account Right For You?” This disclosure applies to “stand-alone advisers.” Go to: https://tinyurl.com/ya2f3ft9.
  3. “Which Type of Account is Right for You — Brokerage, Investment Advisory or Both?” This form applies to dually registered firms. Go to: https://tinyurl.com/y8nhp9yw.

The SEC would like your feedback (“Your Relationship with Your Financial Professional: Feedback on the Relationship Summary,” at  https://tinyurl.com/y968zzox).

If you consider yourself a confident and informed investor, you will want to check your knowledge by reading the entire proposal at  https://tinyurl.com/ybgaaqph. A related proposal called “Regulation Best Interest” can be accessed at  https://tinyurl.com/yajkldyv.

These two proposals are gold mines for the serious investor who wants to understand the regulatory structure that defines how financial professionals differ.  They are essential reading for the serious investor.