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In this issue: Public Policy Update | Committee Updates | Annual Conference Exhibitor Highlight | Weekly News Roundup | 2020 Summer Webinar Topics

Public Policy Updates

Regulation Best Interest

  • The U.S. Securities and Exchange Commission Chairman Jay Clayton issued a statement earlier this week that confirmed June 30 as the compliance date for Regulation Best Interest and Form CRS.
  • Regulation Best Interest Challenged in Second Circuit Court of Appeals
    • On June 2, a panel of the Second Circuit Court of Appeals heard oral arguments regarding the lawsuit filed jointly by various states and a coalition of investment advisors that challenges the U.S. Securities and Exchange Commission’s authority to promulgate Regulation Best Interest. The Second Circuit Court of Appeals is expected to determine the fate of Regulation Best Interest before June 30, when the rule is to go into effect.
  • FINRA announced a revision to Rule 4530 Problem Codes for reporting customer complaints and for filing documents online.
    • FINRA is adding two new Rule 4530 Problem Codes related to SEC Regulation Best Interest (Reg BI) and Form CRS, and making related amendments to the existing Rule 4530 Problem Code related to suitability. Starting on July 18, 2020, firms can use new Problem Code 16–Reg BI and new Problem Code 17–Form CRS, when applicable, to report customer complaint information and required documents filed under Rules 4530(f) and (g). To read the entire regulatory notice, click here.
  • Arizona Adopts Best-Interest Standard for Annuity Sales
    • On June 5, Arizona Gov. Doug Ducey signed state SB1557, a bill that sets a “best interest” interest for the sale of annuities in Arizona, set to take effect Jan. 1, 2021.

FINRA Releases White Paper on Artificial Intelligence
Financial institutions are allocating significant resources to developing applications that use artificial intelligence to offer innovative products, increase revenues, cut costs and improve customer service. The Office of Financial Innovation has met with a number of market participants to learn more about the use of AI in the securities industry, and subsequently FINRA published a white paper on the topic.

ADISA Committees Update

Product Quality Task Force, a newly formed subcommittee of ADISA’s Publications & Standards Committee, has begun work on analytical schema for researching fund quality using case studies.

Committee Chairs: Sherri Cooke, AI Insight, Chair of Publications & Standards; Brad Updike, Mick | Law, Chair of Product Quality Task Force

Legislative & Regulatory Committee will meet today (Thursday, June 18).

Committee Chair: John Grady, Practus

Conference Planning Committee (CPC) leadership met this week to initiate structure for ADISA's Annual Conference.

Committee Chairs: Tom Voekler, Kaplan Voekler Cunningham & Frank, CPC Chair; Joe Michaletz, Discipline Advisors, Annual Conference Chair

Membership & Marketing Committee is working closely with ADISA Director of Marketing Jennifer Fitzgerald on the structure and design of ADISA’s new website, to be launched this fall.

Committee Chair: Matt Malone, FS Investments

AC Exhibitor Highlight
NP Logo
Nelson Partners is a fully vertically integrated student housing owner-operator with over a decade of hands-on acquisition, management and development experience in student housing.  We specialize in developing, acquiring and managing quality purpose-built student housing assets.  With a team of people with deep experience across the real estate, management, sales and marketing spectrum our biggest competitive advantage is our people and the experience they bring.  Nelson Partners consists of more than 35 properties across 13 states totaling over $800 million in assets under management and $400 million in development.

Learn more at 

The Weekly News Roundup

Number-01 Compliance Week - SEC Guidance: Areas of Focus for Reg BI

Article excerpt: SEC Chairman Jay Clayton had said at the start of April that Reg BI wouldn’t be delayed amid the coronavirus pandemic, citing his belief that the rule is more important now than ever given the circumstances brought by the ongoing crisis. “Our work across the Commission over the past several months has strengthened my view that the effects of the COVID-19 pandemic weigh substantially in favor of implementing the Reg BI and Form CRS requirements as soon as practicable,” Clayton reiterated in Monday’s announcement.

Number-02 Multi-Housing News - Rent Payments Reach 89 Percent

Article excerpt: Rental payments in the U.S. hit 89 percent as of June 13, a jump of more than 8 percent from the previous week, according to the latest report from the National Multifamily Housing Council.



Bloomberg Law - DOL to Begin Reopening Offices, Sending Senior Staff Back

Article excerpt: The Labor Department is instructing all political appointees and senior career executives nationwide to return to their offices beginning June 22, ending a three-month period during which these workers were encouraged to telework to avoid spreading the novel coronavirus.

ADISA Summer 2020 Webinar Series Banner

After a successful 2020 Spring Webinar Series, ADISA is gearing up to host a similar series this summer. If you have educational subject matter that would be appropriate for the webinar series, please contact ADISA Executive Director John Harrison.