WASHINGTON — The SEC’s proposed best interest rule is poised to change how advisors operate, and maybe FINRA too.
“If [Regulation Best Interest] is adopted, then we would need to look at our rule set to see if any changes are appropriate,” FINRA CEO Robert Cook told attendees at SIFMA’s annual conference. “For example, is our suitability rule appropriate? But that is down the road. We need to see how Reg BI is adopted.”
Cook’s comments are the latest example pointing to how impactful the proposed SEC rule could be.
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CEO Ron Kruszewski received praise for leading the firm's wealth management unit to a record for revenue, despite costly legal setbacks.
As Vice President, Underwriting Research and Development, Jackie Waas is involved in investigating and developing underwriting innovations, with an emphasis on concept development, research, presenting new ideas, and participating in concept validation activities.
She started her career with RGA in 2018 as Director of Underwriting Services, where she supported direct-to-consumer accelerated offerings, including assisting with the auditing of the e-underwriting program and helping develop digital health scores while supporting the Digital Health Data team.
Prior to joining RGA, Jackie was an Underwriting Business Consultant and automated underwriting systems subject matter expert with Legal & General America for four years after working in an underwriting capacity with the company for nine years. She also had five years of underwriting experience with AXA Equitable and formerly worked as a marketing manager for Steele Rubber Products.
Jackie received a Bachelor of Arts with a major in communications and a minor in psychology from Lenoir-Rhyne University in North Carolina. She is a Certified Fellow of the Academy of Life Underwriting, a Fellow of the Life Management Institute, and a Fellow of the Financial Services Institute. She is also an Associate, Reinsurance Administration; Associate, Insurance Agency Administration; and an Associate, Insurance Regulatory Compliance. Jackie also holds the Professional, Customer Service Institute designation, and she is a member of the Association of Home Office Underwriters.
Guizhou Hu is Vice President, VP, Head of Risk Analytics at RGA, where he supports global RGA underwriting initiatives and produces internal and external thought leadership pieces based on RGA's in-depth risk analytics. Before joining RGA in 2018, Guizhou served as Vice President, Chief Decision Analytics, for Gen Re and as a Senior Vice President for BioSignia Inc. Guizhou holds a medical degree from Beijing Medical University and a Ph.D. in Philosophy from Cornell University.
The SEC proposal would require additional layers of disclosure from brokers and advisors working with clients. And whereas FINRA’s suitability rule requires brokers to recommend a suitable product to meet a client’s needs, the SEC rule requires brokers to act in a client’s best interest.
Fiduciary advocates have criticized the proposed best interest standard for not being strong enough as an investor protection and for having confusing terminology and disclosure requirements. Some have noted that the rule is called “best interest” but does not rise to the level of requiring a fiduciary duty.
Clashes over the Labor Department's fiduciary rule have carried over into the debate on the SEC's proposed regulation.
Industry trade groups and firms, however, have given the SEC proposal a warmer reception, with many seeing the regulation as easier to implement than the Department of Labor’s now defunct fiduciary rule.
“We worked very hard on making sure the SEC took up a best interest standard, and we’ve seen that come closer to fruition,” SIFMA Chairwoman and Charles Schwab executive vice president Lisa Kidd-Hunt told attendees. “That is something we’ve long supported as an industry.”
SIFMA was opposed to the Labor Department’s fiduciary rule, and was party to
For his part, Cook emphasized that FINRA works closely with the SEC, and is ready to support the commission as needed.
“If it is finalized — and I have said this before and I do not think this is newsworthy — but part of our mandate is to ensure compliance with SEC rules. Reg BI would be an SEC rule, just like any other,” Cook said.
