SEC’s Request for Comment On Digital Engagement Practices (DEPs) Puts Fintech Practices Under a Microscope
On August 27, 2021, the SEC issued a press release “requesting information and public comment on matters related to the use of digital engagement practices by broker-dealers and investment advisers.” The primary goal of the Request for Comment was to aid the Commission in determining whether or not regulatory action will be needed to protect […]
How Assessing Risk Capacity With TIFIN Risk Helps Satisfy the Duty of Care Requirements of Reg BI
One of the key components of the Regulation Best Interest adopted by the SEC on June 30, 2020, is the Care Obligation. In referring to this obligation, the SEC states that when making a recommendation, a broker-dealer “must exercise reasonable diligence, care, and skill when making a recommendation to a retail customer….” This stipulation is broken down […]
How A Proper Risk Capacity Score Helps Broker-Dealers Meet Reg BI Requirements
The Regulation Best Interest (Reg BI) rule set out by the SEC on June 30, 2020 means broker-dealers and their associated persons who are natural persons must prove that they’re acting in the best interest of their retail customers. The regulation consists of 4 components, which are: 1-Disclosure: Broker-dealers must disclose, in writing, all material facts […]