In light of prominent Democrats slamming the SEC’s new package of rules on broker and investment advisor conduct, the commission’s chief is striking back at the critics, according to news reports.
Presidential hopeful Sen. Elizabeth Warren, D-Mass., has called the SEC’s Regulation Best Interest, approved June 5, a gift to Wall Street, Bloomberg writes.
House Financial Services Committee Chairwoman Maxine Waters, meanwhile, has gone one step further, successfully pushing through a financial services and appropriations bill at the end of last month that includes an amendment effectively barring the SEC from spending its funds on Reg BI, as reported.
But in a speech this week at Babson College’s Stephen D. Cutler Center for Investments and Finance, SEC Chairman Jay Clayton has called objections to Reg BI “false, misleading.” In some cases, criticisms of the regulation are “policy preferences disguised as legal critiques,” according to Clayton, the publication writes.
Furthermore, the chairman dismissed claims that the rules would diminish the fiduciary standard currently applied to investment advisors, according to Bloomberg.
"I recognize that some interest groups would have preferred a different approach," Clayton said, according to the publication.
"But, after careful consideration, our approach addresses multiple, interrelated issues in a way that best achieves our goals of enhancing investor protection and decision making, while — again — preserving your access and choice."
In all, Clayton went through what he says are seven false claims about Reg BI, Bloomberg reports.