On June 16, 2022, the U.S. Securities and Exchange Commission filed its first complaint alleging violations of the care obligation and the compliance obligation of Regulation Best Interest, or Reg BI.
Under Regulation Best Interests, Broker-Dealers and financial advisors must act in the retail customer’s best interest by complying with the rule’s four component obligations: Disclosure, Care, Conflict of Interest, and Compliance.
In SEC v. Western International Securities Inc., the SEC charged Western and 5 of its advisors with Regulation Best Interest and other violations in connection with recommendations to retail customers to purchase unrated debt securities, known as GWB L bonds, between July 2020 and April 2021.
Reading the complaint provides some insight as to how the SEC views Regulation Best Interests and how it analyzed violations of this new regulation that is meant to provide better protection to investors. You can read the complaint here.
Call Sonn Law Group today at 833-912-3000 if you think your financial advisor did not act in your best interests.