SIFMA Statement on NASAA’s 2021 Reg BI Phase Two Report

Washington, D.C., November 4, 2021 – SIFMA released the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, today in response to NASAA’s publication of its 2021 Reg BI Phase Two Report as a follow-on to its 2020 Reg BI Phase One Report.  Collectively, the two reports attempt to measure financial services firms’ policies and practices prior to, and following, implementation of SEC Regulation Best Interest (“Reg BI”).

“We appreciate that the NASAA report and NASAA leadership recognize that firms have adjusted their policies and procedures to be compliant with the federal law that Reg Best interest is and that the vast majority of firms are headed in the right direction.  However, the report misses the mark in terms of the numerous and substantial changes that firms have made to enhance investor protection and satisfy the best interests of their retail investors.  Firms began making those beneficial changes back in 2015 and 2016 when the now vacated DOL fiduciary rule came out.  In mid-2019 when Reg BI was finalized, firms maintained those material changes because they would also help the firm comply with Reg BI.  The report fails to recognize these significant changes made in response to Reg BI, thereby discounting the true benefits delivered by Reg BI in terms of the positive changes it inspired and requires.

“To be clear, Reg BI is the law, and it has meaningfully raised the bar for financial professionals, and includes many important investor protections while preserving investors’ choices.  The public record is replete with tangible examples of the SEC’s and FINRA’s robust efforts to implement Reg BI, including their extensive compliance and examination efforts, and their publication of additional regulatory guidance and resources.  We continue to support the organic development and growth of Reg BI in that thoughtful and incremental manner.”


SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit