{"id":8860,"date":"2021-08-26T08:26:08","date_gmt":"2021-08-26T13:26:08","guid":{"rendered":"https:\/\/rixtrema.com\/blog\/?p=8860"},"modified":"2021-08-26T08:37:50","modified_gmt":"2021-08-26T13:37:50","slug":"the-new-sec-enforcement-director-gurbir-grewal","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/the-new-sec-enforcement-director-gurbir-grewal\/","title":{"rendered":"The New SEC Enforcement Director: Gurbir Grewal"},"content":{"rendered":"\n
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Within a month of Gurbir Grewal stepping into his new role as the SEC enforcement director, he has already begun to ruffle a few feathers \u2013 by fining 27 firms for failing to file the Customer Relationship Summary (CRS) with the SEC. The CRS was put into place a year prior to Grewal\u2019s instatement this July. Its goal was \u2013 and is \u2013 to help clients and customers decide whether to do business with a firm based on an outline of the firm\u2019s fees, services, and potential conflicts of interest. The summary was to be filed and posted on the firm\u2019s website before July 30th<\/sup>, 2020.<\/p>\n<\/div>\n\n\n\n

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Entering a new position and shaking things up in a short amount of time is nothing new to Gurbir Grewal. Grewal began his political career as chief of the Economic Crimes Unit at the U.S. Attorney’s Office in New Jersey \u2013 giving him a solid understanding of the impact legislation can have on an economy. After several years of Grewal leading his crime unit, he was appointed Prosecutor of Bergen County, New Jersey in 2016 \u2013 taking his first big step towards being a real changemaker. After a quick and successful two-year stint helping Bergen County fight local issues; Grewal progressed to the position of attorney General for the state of New Jersey. As the attorney general Grewal never backed down from a challenge \u2013 refusing to be cowed by ExxonMobil he said, \u201cWe\u2019re sending a strong message to polluters that no matter how big you are, or how powerful you are, or how long you\u2019ve been getting away with contaminating your state\u2019s natural resources, we are going to hold you accountable in court.”<\/p>\n\n\n\n

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Within two years, his profile elevated high enough for him to be nominated, to his current position, as the SEC enforcement director. He brings along with him a remarkable ability to take down offenders fast and efficiently \u2013 within his remit of course.<\/p>\n\n\n<\/div><\/div>\n\n\n\n

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 Grewal is now in charge of enforcing the punishments that pertain to offenders of the SEC\u2019s rules and regulations. After seeing Grewal\u2019s rule on the CRS documentation infractions, resulting in $910,092 in fees, and it being part of the SEC regulatory package that\u2019s focal point is Regulation Best Interest \u2013 it is only a matter of time until Grewal implements his action towards firms not compliant with the standards and rules that make up Regulation Best Interest. That being said, let\u2019s remind ourselves of what makes a firm compliant with Regulation Best Interest:<\/p>\n\n\n\n

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Best interest obligation. A broker, dealer, or a natural person who is an associated person of a broker or dealer, when making a recommendation of any securities transaction or investment strategy involving securities (including account recommendations) to a retail customer, shall act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the broker, dealer, or natural person who is an associated person of a broker or dealer making the recommendation ahead of the interest of the retail customer.<\/p><\/blockquote>\n\n\n\n

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