SEC issues Best Interest rule

The Securities and Exchange Commission has adopted a package of rulemakings and interpretations designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers, bringing the legal requirements and mandated disclosures in line with reasonable investor expectations, while preserving access (in terms of choice and cost) to a variety of investment services and products. The rules include new Regulation Best Interest, the new Form CRS, "Relationship Summary," and two separate interpretations under the Investment Advisers Act of 1940.