4b.  BD/IA – Understanding Reg BI Care Obligation vs. Fiduciary Duty of Care (Intermediate)

In June 2019, the SEC described the Reg BI care obligation in the adopting release and separately issued an interpretation of an IA’s standard of care which addressed the duty of care.  There were distinct differences, however, in April 2023 the SEC issued “Standards of Conduct for BDs and IAs Care Obligations” which blurred the distinction.  This lab will explore the differences, if any, and offer practical advice on regulatory expectations and how firms should respond to the recent guidance with practical tools and takeaways.

• Discuss current regulatory expectations for the care obligation/duty of care.

• Examine the similarities and differences in articulations of the care standard.

• Learn how firms should address costs and reasonable alternatives.

• Explore methods of surveillance and testing for compliance with firm policies.