Originally posted on InvestmentNews by Mark Schoeff Jr.
When a new investment advice standard for brokers is implemented next June, Finra will be responsible for examining brokers for compliance. But the Securities and Exchange Commission will make the final call on determining how the regulation will work.
“It’s not our rule. It’s an SEC rule,” Finra chief executive Robert W. Cook told state regulators on Monday at the North American Securities Administrators Association annual conference in Austin, Tex.
Mr. Cook said the Financial Industry Regulatory Authority Inc. often conducts examinations on SEC rules. On Reg BI, the broker regulator needs “to develop a really good process with the SEC” to handle questions that will come up during exams, he said.
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