With additional clarifications provided by SEC on its expectations for compliance with Regulation Best Interest, a clearer picture emerged for firms, but areas of uncertainty still remain. FrontLine’s Founder and President, Amy Lynch, addressed several of SEC’s responses to remaining questions. She discusses the SEC’s explanation that distributors will be allowed to use a combined form for all affiliated entities, thus eliminating the burden of two different forms. Ms. Lynch does add that identifying conflicts of interest to comply with the rule could be a tricky process requiring a thorough analysis of sales and compensation practices. See IGNITES (subscription required), “SEC Tackles Key Questions on Reg BI”
