Proposed “Best Interest” Standard for Brokers: What Is It and Why You Need to Know
In an effort to clarify and enhance the existing regulatory requirements for broker-dealers, the U.S. Securities and Exchange Commission (SEC) recently released its “Best Interest” standard. According to SEC, the proposed regulation is "designed to enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers while preserving access to a variety of types of advice relationships and investment products."
If adopted as proposed, the standard will require broker-dealers and persons associated with a broker-dealer to act in the best interest of a retail customer when providing recommendations to any transactions involving securities.
In this LIVE Webcast, a panel of thought leaders and professionals brought together by The Knowledge Group will discuss in depth the fundamentals as well as significant issues surrounding the Proposed “Best Interest” Standard for Brokers. Speakers will also identify recent trends, developments and updates surrounding this significant topic.
Key topics include:
- SEC’s “Best Interest” Standard for Brokers: An Overview
- Obligations and Compliance
- Common Red Flags
- Risks and Pitfalls
- Opportunities and Challenges
- Future Implications
- What Lies Ahead
Tamara Seelman, Partner
Gordon & Rees LLP
Jessica L. Mackaness, Founding Partner
Mackaness & Ideta
- Background/history that led to the proposed Best Interest Rule
- 2010 Dodd-Frank Act that authorized the SEC to craft a Fiduciary Rule
- The Department of Labor’s Fiduciary Rule
- The Legal Battle that ensued after that rule was promulgated
- The SEC’s next attempt at investor protection via the proposed Best Interest Rule
Brian P. Nally, Partner
- Objections/concerns over the Current Rule
- What impact would the rule have on regulatory/litigation risk, and
- What can the industry expect going forward (timing, modifications, etc.)
Ruth Jin, Esq., Partner
The Jin Law Group
- Broker-Dealer’s current duty to customers: Duty of Fair Dealing
- Best Interest Standard enhances current standard:
- Specific Obligations
- “Duty of “Care”
- Conflict of Interest:
- “Best Interest” not defined
- Who are subject best interest obligation – the Scope
Who Should Attend:
- Financial Advisers
- Investment Advisers
- In-house Counsel
- Securities Attorneys
- Securities Lawyers
Tamara Seelman is a partner and co-chair of the securities litigation practice group with the national law firm of Gordon & Rees LLP. She has 20 years of experience in complex commercial litigation with an emphasis on securities litigation. She was named Best Lawyers in America®, Securities Litigation (2018 and 2019). She advises public and private companies, broker dealers, registered investment advisors and other financial services entities in state and federal courts, SEC, FINRA and other government investigations and FINRA arbitrations. She regularly advises her clients with respect to sales practice violations, and allegations of securities fraud and breach of fiduciary duty. In addition, for the last 10 years Mrs. Seelman has been an adjunct professor at the University of Denver Sturm College of Law where she teaches a course on securities law.
Tamara Seelman is a partner and co-chair of the securities litigation practice group with the national law firm of Gordon …
Jessica Mackaness is the Founding Partner of Mackaness & Ideta in San Diego, CA. She specializes in business and corporate litigation, securities arbitration and litigation, and employment litigation, representing investors, financial professionals, and commercial clients. In particular, Jessica has assisted many investors with recovering substantial financial losses caused by investment fraud, broker misconduct, and unsuitable recommendations. She has also represented investment advisors and securities industry professionals in regulatory defense matters involving the SEC, FINRA (formerly NASD), and state securities authorities. Relatedly, Jessica has assisted financial professionals with a variety of industry-related matters, including Broker Protocol advisement, Broker-Dealer and Registered Investment Advisory transitions, employment disputes such as wrongful termination claims, negotiating the expungement of incorrect or defamatory information on their U-5 forms and BrokerCheck, advising on licensing issues, negotiating and arbitrating promissory note matters, and litigating trade secret claims.
Jessica Mackaness is the Founding Partner of Mackaness & Ideta in San Diego, CA. She specializes in business and corporate …
Brian is a Partner out of Reminger’s Cleveland and Indianapolis offices. His national litigation practice focuses on securities and business litigation. Brian regularly represents broker-dealers, registered representatives, Registered Investment Advisors, and other clients in the financial services industry in state and federal court litigation and arbitration disputes before the Financial Industry Regulatory Authority (FINRA) arbitration and American Arbitration Association (AAA). Brian also has experience representing clients in government regulatory investigations or enforcement actions brought by FINRA, the Securities and Exchange Commission, professional boards (e.g., the CFA Institute, CFB Board), departments of securities, the department of insurance, and the Internal Revenue Service. Additionally, Brian represents financial institutions, banks, businesses, Directors and Officers, and other parties in complex litigation.
Brian has been recognized as a “Rising Star,” for Securities Litigation by Ohio Super Lawyers Magazine in 2014, 2015, 2016, 2017, and 2018, a recognition given to less than 2.5% of lawyers in the State of Ohio. He is also “AV” Rated by Martindale-Hubbell, peer rated for Highest Level of Professional Excellence.
After obtaining his undergraduate degree, cum laude, from Coker College, Brian spent time in the financial services industry as a summer equity research analyst for Jefferies & Co. in New York. Brian then attended Case Western Reserve University School of Law, where he was a member of the McGee National Civil Rights Moot Court Team, member of the Dean’s List, recipient of the CALI High ‘A’ Award Winner for Evidence, and recipient of the Sidney H. Moss Award.
Brian is a Partner out of Reminger’s Cleveland and Indianapolis offices. His national litigation practice focuses on securities and business …
Ruth Jin has extensive experience in corporate and securities laws. She regularly represents private equity firms and hedge funds for fund formation, investment management and related regulatory compliance; and represents corporations for equity/debt securities offering, mergers and acquisitions, joint ventures, and general corporate matters. She also provides broker-dealers with regulatory compliance related legal advice. Ruth's clients range from entrepreneurs and emerging companies to Fortune 500 companies. She advises businesses through all stages of growth from start-up and capital financing right through to initial public offering and counsels on the ongoing securities law compliance and periodic reporting obligations.
Prior to founding The Jin Law Group, she worked at the corporate law departments of such major law firms as Orrick Herrington & Sutcliffe and McKee Nelson LLP. Ruth was selected as Rising Star by Super Lawyer magazine, a rating company of outstanding lawyers by Thomson Reuters; selected as one of the Top Attorneys in New York by New York Times Magazine since 2014; and Top 10% Attorneys by Lawyers of Distinction in 2018. Ruth was a panelist in the 2005 American Bar Association Section of International Law Spring Meeting on international trade related issues, and was a fellow of the Institute of International Economic Law in Washington, D.C. from 2003 to 2004.
Ruth Jin has extensive experience in corporate and securities laws. She regularly represents private equity firms and hedge funds for …
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About Gordon & Rees LLP
Gordon & Rees is a national litigation and business transactions firm with more than 800 lawyers in 50 offices across the United States. Our lawyers provide full service representation to public and private companies ranging from the Fortune 500 to start-ups. Founded in 1974, Gordon & Rees is recognized among the fastest growing and largest law firms in the country. Additionally, in 2018 Law360 ranked the firm among the top 40 largest U.S. firms and The American Lawyer ranked the firm among the top 35 on its Diversity Scorecard.
About Mackaness & Ideta
Mackaness & Ideta is a specialty law firm focused on securities and business law, financial services law, and business, securities, and employment litigation and arbitration. Founding partners Jessica Mackaness and Erik Ideta started Mackaness & Ideta with the goal of creating a law firm that felt accessible to both businesses and individuals who want quality legal services without the bureaucratic hassle of dealing with a traditional, large law firm.
At Reminger, we embrace our Midwestern roots. We value hard work, a roll-up-yoursleeves approach and get-it-done attitude. It is our belief that this mindset, combined with our relentless pursuit of delivering results in the most efficient manner possible, drives the continuing demand for our services. We are proud of our reputation not only as a seasoned litigation firm with a diverse client base, but also as a sophisticated provider of legal services encompassing real estate, corporate, business, tax, estate planning, probate disputes and more.
About The Jin Law Group
The Jin Law Group, PLLC is a specialized corporate and securities law boutique providing strategic legal services to clients ranging from emerging companies and entrepreneurs to Fortune 500 companies. The Jin Law Group advises business ventures through all stages of growth from start-up to various types of capital financing. The Firm has extensive experience in representing hedge funds and VC/PE firms in fund formation, securities law compliance and acquisition transactions. In addition, the Firm represents broker-dealers for FINRA registration and compliance. The Firm is known for its legal innovation, excellence, integrity and diligence among its clients. The core values of the Firm are specialization, dedication and reliability.