Fred Reish Discusses FINRA’s Enforcement of Reg BI With InvestmentNews

In an article for InvestmentNews, benefits and executive compensation partner Fred Reish offered insight on the Financial Industry Regulatory Authority (FINRA) censuring and fining a New Jersey-based broker-dealer and its chief compliance officer for allegedly violating the compliance and care obligations of Regulation Best Interest (Reg BI).

Reish mentioned that FINRA is in the beginning stages of enforcing Reg BI, and FINRA’s action against the firm is notable for focusing on the compliance and care obligations of the rule. “Reg BI’s Compliance Obligation requires that broker-dealers have and enforce written supervisory procedures for compliance with the Care Obligation,” he said. “If the facts of the acceptance, waiver and consent are accepted, it appears that the broker-dealer failed to do that.”