BDA Sends Follow-Up Letter to SEC Chairman Clayton Regarding Retail Confirmation Mark-Up Disclosure

On February 7, 2018, BDA sent a follow-up letter to SEC Chairman Clayton (cc’ing his fellow commissioners, SEC divisions, FINRA and the MSRB) regarding our January 17, 2018, SEC fly-in which focused on retail confirmation mark-up disclosures.

During our meeting on January 17, Mr. Clayton candidly expressed to us that he feels if a flat delay of the rule is given, vendors will not use that time to work on solutions.  He also expressed concern that one delay might lead to several more requests for delay down the road.

Chairman Clayton requested that BDA provide the SEC with a business plan/timeline approach, which you will see laid out in the letter, as he has not been satisfied with previous approaches that simply requested a delay in implementation of the rule.

BDA’s working group moved forward with the approach detailed in the letter, requesting a transition period without a formal extension of the effective date – but with a conformance period allowing for full compliance by December 31, 2018, provided industry can show they are actively working on solutions.

Of particular importance, BDA makes a very clear point in the letter that it would be incredibly disruptive to the retail market and consumers if confirms were to go out with inaccurate information.

Moving forward, BDA will continue to stay in contact with Chairman Clayton and others who received the letter and will provide updates as they become available.