Tr?id=566623520170033&ev=PageView&noscript=1

SEC Issues New Warning Regarding Reg BI Compliance Lapses

Posted on February 10th, 2023 at 1:54 PM
SEC Issues New Warning Regarding Reg BI Compliance Lapses

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has issued a warning indicating that financial advisory firms are relying on outdated systems to achieve compliance with Regulation Best Interest (Reg BI).

The SEC’s risk alert outlines several compliance problems that the SEC discovered during targeted exams, some of which have resulted in violations relating to rollover and account recommendations. The SEC’s risk alert indicates that the agency’s exam division aims to incorporate compliance with Reg BI “into retail-focused examinations of broker-dealers, particularly those that include sales practices within the scope of the examination.” The risk alert emphasizes the compliance deficiencies discovered during exams as well as instances of faulty practices that could potentially lead to deficiencies.

The SEC additionally noted that financial advisory firms depend “heavily on surveillance systems that existed before the effective date” of Reg BI “without considering whether those systems needed modification.” The SEC also discovered a host of conflict of interest problems, such as several financial advisory firms failing to employ written policies or protocols for identifying and addressing conflicts.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1784829196 Law
July 23, 2026
Cresset Sues Former Advisor Over Alleged Client Solicitation and Competing RIA Launch

Cresset Capital Management has filed a lawsuit in Illinois state court against a former advisor, alleging that he began building a competing registered investment advisory firm and soliciting clients while still employed by the Chicago-based wealth management firm.

1784733625 Law
July 22, 2026
Barred Oregon Financial Advisor Pleads Guilty to $1.6 Million Investment Fraud

A former Oregon financial advisor has pleaded guilty to fraud after admitting to a long-running scheme that caused investors to lose more than $1.6 million.

1784649161 Law
July 21, 2026
Merrill Lynch Settles Another NFL Player's Claim Related to Financial Advisor Isaiah Williams

Merrill Lynch has agreed to pay $1.25 million to resolve claims brought by former NFL player Sean L.