Welcome back to the Compliance In Context podcast! On today’s show, we’ll discuss Jay Clayton’s departure from the SEC and the first real cases from the SEC Enforcement Division's Exchange-Traded Products Initiative. 

For our interview segment, we welcome in former NSCP Chair and industry stalwart Miriam Lefkowitz to do a deep dive on how firms can best prepare for the practical application of Regulation Best Interest into their compliance programs.  

Finally, we’ll wrap up today’s show with another installment of the What’s On My Mind series, where our focus today will be on the recent rule proposal for “finders” and how this broker-dealer exemption could be just what we need to help struggling businesses with capital formation.

 

Topics: 

Jay Clayton’s announcement of his departure from the SEC

Major settlement related to improper sales of volatility-linked exchange-traded products.

 

Interview

REG BI and Form CRS preparation.

Practical application of the rule after a full quarter in place

How to avoid trip wires

Comparing good vs. bad disclosures

Methods for staying current with regulations and the NSCP Reg BI Forum

 

What’s on My Mind

SEC Commissioners Encourage Small Business Advisory Committee to Consider Proposed Registration Exemptions for “Finders.”

 

Quotes:

“I think disclosures around monitoring are challenging because there are responsibilities and duties that flow from whether your broker or whether you're an investment advisor.”

“The SEC did discuss...the nature and the scope of the review, they've done to date and true to their word. They're looking for good faith efforts to comply. And for the most part they found it.”

 

Resources:

Compliance in Context