The Financial Industry Regulatory Authority is pushing back against a U.S. government proposal meant to cut down on conflicts on interest between brokers and investors, reports Investment News.
The proposed rule, which would force brokers to act in the best interests of retirees and those with U.S. retirement savings accounts, is confusing and redundant, FINRA argues.
In a comment letter it sent to the Department of Labour (which proposed the rule), FINRA says it supports a best interest standard for broker dealers. It argues that instead of creating new rules, the basis for the standard should be existing securities rules.
“The standards for the investment advisor and the broker-dealer businesses must be harmonized to provide consistent investor protection while reflecting the distinctive nature of each business model,” FINRA writes.