Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female engineer named Morgan Beller.Technologyread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Agricultureread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
The president also said he "offered to personally vouch" for Rocky's bail. Sweden, however, does not have a bail system.Politicsread more
CoinShares Chief Strategy Officer Meltem Demirors discusses Facebook's Libra project and its impact on the cryptocurrency market after testifying to the House Financial...Fast Moneyread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
Amazon hires Trump-allied lobbyist Jeff Miller as battle for Pentagon contract heats up.Politicsread more
In a series of tweets, the president addressed an unusual controversy stemming from a speech delivered Thursday by New York Fed President John Williams.Marketsread more
A bill that cleared the House on Wednesday includes an amendment that would upend securities regulators' plans to hold brokers to a new standard when giving advice to retail investors.
Added to an appropriations bill that passed 224 to 196, the late addition would prohibit the Securities and Exchange Commission from implementing and enforcing a new regulation that calls for brokers to act in the best interest of their clients when making investment recommendations.
The amendment was sponsored by Rep. Maxine Waters (D-Calif.), who chairs the House Financial Services Committee. It was one of dozens of amendments offered, and among those that were approved by the House.
The bill will head to the Senate, where the Waters amendment would be less likely to be embraced in the Republican-dominated chamber. Senators could vote on their own version, and then the differences would need to be worked out between the two chambers.
The target of Waters' amendment is the SEC's "Regulation Best Interest." Along with other regulatory actions intended to enhance disclosures and clarify some advisors' existing responsibility to put their clients' interests before their own, the new regulation was approved in early June in a 3-1 vote by commissioners.
Supporters of the rule — which includes the broker-dealer industry — say it will be an improvement over the current standard for brokers, which only requires them to make sure an investment is "suitable" for a client.
Nevertheless, critics warn that it falls short of eliminating conflicts of interest — such as commission-based pay or other financial arrangements — that end up costing investors and lining the pockets of brokers.
The regulation comes with a compliance date of June 30, 2020. It will apply to investment recommendations, whether an individual stock or bond or a certain account type, such as a rollover individual retirement account.
Compliance by broker-dealers will include making required disclosures and working to mitigate conflicts that could lead a broker to make a recommendation that is not in the client's best interest.
The rule also bans sales contests among broker-dealers, and requires brokers to consider the cost of an investment when determining whether it is in the best interest of the customer.
Additionally, a so-called relationship summary form will be a required disclosure. It will include a variety of information such as the fees charged, services offered, conflicts of interest and whether the firm and its financial professionals have a history of legal or disciplinary actions.
Commissioners also adopted interpretations of existing law pertaining to the advisors that the SEC oversees and when investment advice can be considered "incidental" by a broker and not subject to additional regulation. Those two items will be effective once they are published in the Federal Register.