{"id":8826,"date":"2021-08-23T08:23:38","date_gmt":"2021-08-23T13:23:38","guid":{"rendered":"https:\/\/rixtrema.com\/blog\/?p=8826"},"modified":"2021-08-25T11:43:39","modified_gmt":"2021-08-25T16:43:39","slug":"new-sec-enforcement-chief-to-bring-wider-net-to-the-reg-bi-rule","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/new-sec-enforcement-chief-to-bring-wider-net-to-the-reg-bi-rule\/","title":{"rendered":"New SEC Enforcement Chief to Bring Wider Net to the Reg BI Rule"},"content":{"rendered":"\n
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Recently a new, uniform, fiduciary standard has been proposed by Gurbir S. Grewal; 6 weeks into his <\/span>appointment<\/span><\/a> as the SEC\u2019s new Director of Enforcement.<\/span><\/p>\n

Prior to joining the commission, Mr. Grewal had served as NJ\u2019s attorney general from January 2018 up until recently, and has proposed a uniform fiduciary standard for brokers and advisors locally, making New Jersey the first state to adopt it.<\/span><\/p>\n

The existing Reg BI rule is not yet a fiduciary standard, but SEC enforcers still refer to it when investigating potential violations in regards to fiduciary activities and relations between clients and advisors.<\/span><\/p>\n

SEC Chair Gary Gensler and other commission members have high hopes for Gurbir Grewal\u2019s tenure. Gensler said, \u201cHe has had a distinguished career as New Jersey\u2019s chief law enforcement officer and as a prosecutor at both the local and federal levels. He has the ideal combination of experience, values, and leadership ability to helm the Enforcement Division at this critical time.\u201d<\/span><\/p>\n

James Lundy, a partner with Faegre Drinker and a member of the firm\u2019s Best Interest Compliance Team is sure that a leader with such a background will interpret Reg BI expansively, which will inevitably bring Reg BI closer to convergence with the fiduciary standard for investment advisors.<\/span><\/p>\n

In his 10-minute video message posted on July 16, 2021, Mr. Grewal is saying \u201cJustice is simply not about numbers of arrests or convictions. Justice is also about the cases we don\u2019t make, the individuals we keep out of the criminal justice system.\u201d<\/span><\/p>\n

Although the pandemic might have a negative impact on the movement of su\u0441h rules, there\u2019s no doubt that the rule will see the light eventually.<\/span><\/p>\n

At RiXtrema we care about due diligence process and keep a close eye on new SEC updates. <\/span>Request a demo<\/span><\/a> for our best compliance solution RegBI Optimizer, to always be prepared.<\/span><\/p>\n\n\n\n