After Reg BI, it appears it is still a buyer-beware environment where it is up to individual investors to watch videos and tutorials to ensure they’re not being disadvantaged by their financial professional or his or her broker-dealer, which may be paid hidden fees to sell certain products.
The SEC said in a statement that the new videos are designed to “enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers and bring the legal requirements and mandated disclosure in line with reasonable investor expectations, while preserving access [in terms of choice and cost] to a variety of investment services and products.”
Chairman Clayton previously announced that these videos, along with investor events, would be part of a new campaign designed to help retail investors understand whether working with one of the different types of financial professionals is right for them.