By Anne Sherry, J.D. NASAA’s comments on the SEC’s suite of investor-protection rule proposals include a suggestion that the SEC rename Regulation Best Interest to avoid confusion and that it withdraw the example Forms CRS that it included in the relationship summary proposal. The organization of state regulators supports the overall approach of raising the standard for broker-dealers without weakening current standards for investment advisers, but said that the proposals require significant improvements to further the best interests of investors. The comment letter also calls for an outright ban on sales contests at broker-dealers, a position that SEC Chairman Jay Clayton shares, according to a recent statement. NASAA said that it cannot envision a situation where a sales contest would be consistent with a broker-dealer’s duties under Reg BI, but the continued existence of abusive practices will undermine investor confidence. The organization added that the…
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