Investment News turned to partner Jim Lundy for his thoughts on the current Securities and Exchange Commission (SEC)’s administration, as well as his outlook on how a Democratic Party victory in the U.S. Presidential election could impact investment advice rules.
The publication reports that Regulation Best Interest (Reg BI) was a “signature accomplishment” for current SEC chairman Jay Clayton, but he is not likely to see how it plays out even if President Trump wins a second term. Clayton has indicated he wants to leave his post.
“Jay Clayton has been a supporter of enforcement,” said Lundy. “The consensus across the industry has been that he has been a good chairman,” he added.
Even so, according to Lundy, a Democratic takeover of the agency could be a shot in the arm for enforcement.
“Historically, the Enforcement Division has felt a little more empowered under Democratic-appointed chairmen,” Lundy added.