Clayton said best-interest standards should have a number of benefits, “if we can get this right.”
In addition to giving investors more clarity regarding “what standard of conduct applies” when they work with a financial professional, Clayton said he wants enhanced protection for investors. “If there are areas where protection appears to be lacking it should be enhanced,” he said.
The SEC’s rulemaking priorities letter said the agency expects to propose best interest standards in the second half of the year.