Sep 10, 2019 · Regulation Best Interest applies to recommendations of any securities transaction or investment strategy involving securities (including account recommendations). What is a recommendation?

Apr 11, 2025 · SEC Regulation Best Interest sets forth the standard of conduct broker-dealers must provide to their retail customers when they make recommendations of securities or investment strategies involving securities.

Through Regulation Best Interest, a new Form CRS Relationship Summary, and two separate interpretative releases under the Investment Advisers Act of 1940, the Commission enhanced and clarified the standards of conduct applicable to broker-dealers and investment advisers.

In addition to the policies and procedures required by paragraph (a)(2)(iii) of this section, the broker or dealer establishes, maintains, and enforces written policies and procedures reasonably designed to achieve compliance with Regulation Best Interest.

(A) Understand the potential risks, rewards, and costs associated with the recommendation, and have a reasonable basis to believe that the recommendation could be in the best interest of at least some retail customers;

Under Regulation Best Interest, you must have a reasonable basis to believe that the recommendation is in the retail customer’s best interest at the time of the recommendation and does not place your financial or other interest ahead of the interest of the retail customer.

Aug 24, 2024 · Regulation Best Interest, often abbreviated to Reg BI, is a straightforward rule requiring that broker-dealers of financial services act in the best interest of their clients when making...

The SEC's Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934 establishes a "best interest" standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of ...

Mar 22, 2024 · Regulation Best Interest, or Reg BI, imposes a "best interest" standard of conduct on broker-dealers and their investment professionals when they make a recommendation to a retail customer of any securities transaction, or investment strategy involving securities.

Effective June 30, 2020, Reg BI imposes a standard of conduct that requires brokers to act in the best interest of their clients when making recommendations about securities transactions or investment strategies.