Political Quotes

“This amendment is unnecessary and could undermine the investor understanding of how retail investors relate to brokers. H.R. 1815, the SEC Disclosure Effectiveness Testing Act, simply requires the Securities and Exchange Commission to test its documents with retail investors through one-on-one interviews and surveys to ensure that disclosure documents intended for retail investors are actually understood by their target audience. H.R. 1815 is in no way intended to repeal Regulation Best Interest, a rule adopted by the SEC in June to change the standard of conduct for brokers when providing retail investors with personalized investment advice. And, to be clear, the bill does not require testing of the standard imposed by the SEC under Regulation Best Interest. Instead, it requires testing of how well retail investors understand the standard and how it impacts the advice they receive, along with any other disclosures. In addition, the bill contemplates that the SEC, in consultation with the investor advocate, would develop a schedule of disclosures that it intends to test and report to Congress. There is nothing in the bill that requires investor testing of disclosures related to Regulation Best Interest on day one of enactment. But this amendment would say that the SEC should never test these disclosures, regardless of changes to the markets, investment product offerings, investor behaviors, and investment trends.…”