SEC Focuses on Reg BI Compliance, Hybrids, and Fees in 2025 Exams
The SEC is gearing up to focus on Reg BI compliance, hybrids, and hefty fees during the 2025 exams. This can affect financial advisors and broker-dealers. The SEC is planning to target these areas to ensure that firms are adhering to regulatory standards and serving their clients well.
Reg BI compliance is one of the key areas of interest for the SEC. This regulation aims to enhance the quality of advice given to clients. Hybrid advisors, who work across both the registered investment advisor (RIA) and broker-dealer worlds, will also be under scrutiny. The SEC wants to ensure that these advisors are providing the best advice to their clients, regardless of their business model.
Hefty fees will be another focal point for the SEC during the 2025 exams. The commission wants to make sure that investors are not paying excessive fees and are receiving value for the services they are provided. This is an important aspect of protecting investors and maintaining the integrity of the financial industry.
Financial advisors and broker-dealers should be aware of these upcoming exams and prepare accordingly. Ensuring compliance with regulations and providing high-quality services to clients will be key to a successful examination. Stay informed and stay proactive to navigate these changes in the financial industry.
