In its letter to the SEC, BDA reiterates our concern with the Proposed Rule’s absolute ban of related principal transactions and urges the Commission to disapprove the Proposed Rule so that the MSRB can redesign a more reasonable conflicts of interest regime.
Specifically, the BDA believes:
- The proposal that certain principal transactions be banned is out of step with how the duty of loyalty is managed with other fiduciaries.
- A different approach should be considered by the MSRB and this approach should involve and engage the client and require appropriate disclosures and informed consents.
You can read our full letter here.
Additionally, BDA sent a follow-up letter to the MSRB as well as submitted for the record at the SEC, in which we expanded on our suggestions for an alternative approach to the principal transaction ban. You can find that letter here.
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