- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-08-03T18:50:00
SEC staff in a bulletin issued Tuesday said adhering to the Investment Advisers Act and Reg BI regarding conflicts of interest is neither a “check-the-box” or “set it and forget it” exercise but instead a “robust, ongoing process that is tailored to each conflict.”
SEC staff in a bulletin issued Tuesday said adhering to the Investment Advisers Act and Reg BI regarding conflicts of interest is neither a “check-the-box” or “set it and forget it” exercise but instead a “robust, ongoing process that is tailored to each conflict.”
“All broker-dealers, investment advisers, and financial professionals have at least some conflicts of interest with their retail investors,” the staff said in the bulletin. “Specifically, they have an economic incentive to recommend products, services, or account types that provide more revenue or other benefits for the firm or its financial professionals, even if such recommendations or advice are not in the best interest of the retail investor. This can create substantial conflicts of interest for both firms and financial professionals.”
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