Schapiro Wants Point-of-Sale Disclosure
In a recent speech, SEC Chairman Mary Schapiro called for new point of sale disclosure comparing securities products and services and disclosing compensation and conflicts of interest. She said that the SEC will “continue to demand more from the financial professionals upon whom investors rely.” She opined that their “has been significant industry resistance to this seemingly level-headed concept.” She also indicated that the SEC will again tackle Rule 12b-1 fees.
OUR TAKE: The securities laws already require product-specific point of sale disclosures (e.g. mutual funds, variable annuities, Form ADV Part II). How will the SEC integrate these into an additional point-of-sale disclosure?