Wall Street Sees a Win in SEC Crackdown on Broker Conflicts
- New rule requires firms to act in clients’ ‘best interest’
- Critics say regulations won’t eliminate shady practices
The U.S. Securities and Exchange Commission
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Wall Street is finally getting tougher rules that crack down on industry conflicts of interest. Bankers are hardly sweating it.
The U.S. Securities and Exchange Commission is poised to approve new requirements next week for selling stocks, bonds and other assets after brokers fended off the government’s attempts to restrict shady practices for almost a decade. But investor advocates are concerned the regulations fall short of what’s needed to prevent firms from taking advantage of clients, a worry underscored by the industry’s support of the SEC’s effort.