Published on Sep 30th, 2022 |

Brief Introduction

SEC Chair, Gary Gensler, made multiple comments during a 30-minute discussion with IAA CEO, Karen Barr, that gave insight into the SEC’s agenda for the industry’s regulatory environment.

Notable Comments From Gary Gensler

As the IAA heavily emphasized the difference between an adviser vs brokerage relationship, which is reflected in the SEC laws, Gensler argued that the public sees little distinction between advisory and brokerage relationships. Gensler also argued that the distinction in enforcement between adviser and broker has allowed cryptocurrency and online brokerage accounts to flood the market. He is concerned that the public is unable to distinguish who is an adviser and who is a broker.

It was evident that transparency and efficiency in the market is a major goal in the agenda for Gensler. He claimed that regardless of whether a firm is acting as a broker or an adviser, the financial interest of their clients must take precedence over the firm’s success.

Vigilant’s Final Conclusion

The IAA has stated that Gensler’s agenda is more aggressive than previous SEC agenda’s in recent history.

As the regulatory environment tightens, and the SEC takes greater initiative to enforce Best Interest Regulation, your company requires consistent, up-to-date, and defendable compliance operations that highlight your firm’s commitment to the best interest of its clients.

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