This conversation originally appeared on Family Wealth Report on July 31.

As part of Family Wealth Report’s series of Wealth Talk videos, we speak to a prominent US wealth management industry figure about the Regulation Best Interest legislation, and why he is concerned about how it will not improve fiduciary standards, as framers claim.

The sweeping new set of rules on US wealth management known as Regulation Best Interest are controversial. Last June, the US Security and Exchange Commission supported the Regulation Best Interest rule, and supported other actions to improve disclosures and clarify advisors’ responsibilities. The rules follow a failed attempt by the Department of Labor to enact a fiduciary rule that would have introduced a “best interest” test of how financial advice is provided. However, senior wealth management industry figures have criticized the SEC rule as diverging form the existing fiduciary standard required of registered investment advisors. 

One such critic is Knut Rostad, who is president at Institute for the Fiduciary Standard. He also wrote about the issue at Family Wealth Report on July 15. We have run this discussion as an audio-only podcast.