The SEC issued a rule– Regulation Best Interest– in 2019 to decrease such disputes of interest in monetary advice.While its led lots of brokerage companies to alter their behavior (by disallowing the sale of certain financial investments, for example) financier supporters believe it still permits brokers to provide conflicted advice to clients.The SEC will also focus its assessments on brokerage firms compliance with the regulation, known as Reg BI. Prior tests had actually focused on processes companies used to carry out the rule; in 2021, the SEC will expand the scope of its scrutiny, the company said.The number of advisory firms supervised by the SEC has grown significantly in recent years– to nearly 14,000, up from 12,000 5 years earlier. At the exact same time, customer possessions grew by about $30 trillion, to $97 trillion.The SEC completed about 2,950 evaluations of financial advisory companies last year, a 4% drop from 2019 thats mostly attributable to the effect of the Covid pandemic, it said.Conflicts of interest ranked among the most important assessment concerns for the SEC this year.

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