SEC Targets Reg BI Compliance, Hybrids and Fees in 2025 Exams
The SEC is gearing up to conduct their exams targeting Reg BI compliance, hybrid financial advisor models, and hefty fees in 2025.
In their upcoming exams, the SEC is expected to focus on ensuring financial advisors are compliant with Regulation Best Interest (Reg BI). This regulation requires financial advisors to act in the best interest of their clients without putting their own interests first. The SEC will be closely monitoring firms to ensure they are meeting these standards.
Additionally, the SEC will be paying special attention to hybrid financial advisor models. These models combine both fee-based and commission-based approaches to compensation. The SEC wants to ensure that these hybrid models are transparent and suitable for clients.
Lastly, the SEC will be examining the fees charged by financial advisors. High fees can eat away at investment returns and hinder a client’s financial goals. The SEC will be looking to make sure that fees charged by financial advisors are reasonable and in line with industry standards.
It’s important for financial advisors to stay informed about these upcoming exams and to ensure they are meeting all compliance standards. By following regulations and keeping client interests at the forefront, financial advisors can build strong, trustworthy relationships with their clients.
