January 16, 2020
SEC Provides FAQs for Regulation Best Interest
WHAT HAPPENED?
In preparation for the adoption of Regulation Best Interest (Reg BI), the Securities and Exchange Commission recently released a set of Frequently Asked Questions for use by broker-dealers who are coming into compliance with the regulation.
Reg BI is intended to raise the standard of conduct for broker-dealers working with retail customers. The Commission is seeking to raise ethical standards among broker-dealers to meet those currently in place for investment advisers.
The FAQs outline four broad topic areas of Recommendation, Disclosure Obligation, Care Obligation, and Conflict of Interest Obligation. The information aims to provide accessible and clearly stated information to broker-dealers as they prepare to comply with Reg BI.
WHAT DOES THIS MEAN FOR ME?
Reg BI was passed last year in a package which also includes the new Form CRS requirement for Investment Advisers and new rule interpretations. The compliance date for Reg BI is June 30, 2020. Reach out to Fairview if you or your firm are subject to the regulation and would like assistance with navigating new requirements.
