Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
The U.K. prime minister prepares to meet his German and French counterparts this week.Europe Politicsread more
Amazon is raising seller fees for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government.Technologyread more
U.S. stock index futures point to a higher open on Monday morning as the White House sought to calm investors over growing concerns about the U.S. economy.US Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
Baidu is gearing up to release its second-quarter earnings on Monday with the market expecting a sharp decline in profit.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia rose on Monday as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China 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.