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Asset Management Counsel David Tittsworth Discusses Reg BI Lawsuits

Practices: Asset Management

Capital Insights.

A coalition of eight attorneys general have filed a lawsuit challenging a recently passed SEC rule, arguing it does not sufficiently protect investors under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Insights from asset management counsel David Tittsworth are included in a Pensions & Investments article titled “Eight attorneys general sue SEC over Reg BI concerns” and a Compliance Reporter article titled “States Sue SEC in Bid to Avoid Reg. BI,” both published on Sept. 10. The lawsuit's legal merits will involve a close look at the complicated provisions of Section 913 of the Dodd-Frank Act. "That section of Dodd-Frank authorized — but did not require — the SEC to promulgate rules governing standards of conduct for broker-dealers and investment advisers," Mr. Tittsworth states in the articles. "But the provisions are arguably ambiguous."

In an Ignites article published on Sept. 12 titled “Reg BI Challenges Face Big Hurdles: Fund Lawyers,” Mr. Tittsworth elaborates that Section 913 is “very complicated” and contains “significant deviations within the same provision of law about what the standard of conduct will be for brokers,” says Tittsworth, who was formerly CEO of the Investment Adviser Association. Mr. Tittsworth was also quoted on this issue in an article published by WealthManagement.com on Sept. 11 titled “Lawsuits Against the SEC Could Complicate DOL's Own Fiduciary Efforts,” and in a Compliance Reporter article titled “RIA Network Sues SEC over Reg. BI” published on Sept. 11 which reports that XY Planning Network has also filed a suit against the SEC on Reg. BI.

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