Regulation Best Interest
E1000695
Regulation Best Interest is a U.S. Securities and Exchange Commission rule that raises the standard of conduct for broker-dealers when making recommendations to retail investors, requiring them to act in the investors’ best interest and address conflicts of interest.
Statements (50)
| Predicate | Object |
|---|---|
| instanceOf |
SEC rule
ⓘ
U.S. securities regulation ⓘ broker-dealer conduct standard ⓘ |
| adoptionDate | 2019-06-05 ⓘ |
| appliesTo |
account recommendations
ⓘ
associated persons of broker-dealers ⓘ broker-dealers ⓘ recommendations of investment strategies ⓘ recommendations of securities transactions ⓘ retail investor recommendations ⓘ rollover recommendations ⓘ |
| codifiedIn | 17 CFR 240.15l-1 ⓘ |
| comparedTo | suitability standard ⓘ |
| complianceDate | 2020-06-30 ⓘ |
| criticizedBy | investor advocacy groups ⓘ |
| criticizedFor | not being a full fiduciary standard ⓘ |
| doesNotApplyTo | investment advisers under the Advisers Act ⓘ |
| effectiveDate | 2019-09-10 ⓘ |
| enforcedBy |
FINRA
NERFINISHED
ⓘ
SEC Division of Enforcement NERFINISHED ⓘ |
| includesObligation |
Care Obligation
ⓘ
Compliance Obligation ⓘ Conflict of Interest Obligation ⓘ Disclosure Obligation ⓘ |
| isMoreStringentThan | FINRA suitability rule ⓘ |
| jurisdiction |
United States of America
ⓘ
surface form:
United States
|
| legalBasis | Securities Exchange Act of 1934 NERFINISHED ⓘ |
| policyArea |
financial regulation
ⓘ
investor protection ⓘ |
| purpose |
address conflicts of interest in broker-dealer recommendations
ⓘ
enhance retail investor protection ⓘ raise the standard of conduct for broker-dealers ⓘ |
| regulator |
Securities and Exchange Commission
ⓘ
surface form:
U.S. Securities and Exchange Commission
|
| relatedDocument | Form CRS Relationship Summary NERFINISHED ⓘ |
| requires |
acting in the best interest of the retail customer
ⓘ
care in making recommendations ⓘ conflict of interest elimination in certain cases ⓘ conflict of interest identification ⓘ conflict of interest mitigation ⓘ consideration of costs when making recommendations ⓘ consideration of reasonably available alternatives ⓘ disclosure of material facts about the relationship and recommendations ⓘ establishment of compliance policies and procedures ⓘ no placing of financial or other interest ahead of the retail customer ⓘ placing the retail customer’s interest ahead of the broker-dealer’s interest ⓘ written policies and procedures to achieve compliance ⓘ |
| shortName | Reg BI NERFINISHED ⓘ |
| standardOfConduct | best interest standard ⓘ |
| supportedBy | broker-dealer industry groups ⓘ |
| targetAudience | retail investors ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.