The Certified Financial Planner Board of Standards has issued an interim suspension against an advisor who has been accused by the SEC of violating Reg BI.
Patrick M. Egan of Alhambra, Calif., was suspended retroactive to June 21, the board announced today.
The CFP Board said it took the action after learning the SEC filed a complaint with the U.S. District Court in California alleging that Egan and other co-defendants violated Reg BI, the agency's fiduciary rule.
The SEC’s Regulation Best Interest (Reg Bi) establishes a “best interest” standard of conduct for broker-dealers when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
Egan was one of five reps sued by the SEC earlier this month in a case that represented the agency's first reported violations of Reg BI.
In the SEC lawsuit, the reps and their broker-dealer, Western International Securities Inc. of Pasadena, Calif., are accused of selling unrated junk bonds to retirees and other retail investors.