Regulation Best Interest (REG BI) Overview
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 accounts.
As part of the rulemaking package, the SEC also adopted new rules and forms to require broker-dealers and investment advisers to provide a brief relationship summary, Form CRS, to retail investors. In addition, the SEC published interpretations concerning investment advisers’ standard of conduct under the Investment Advisers Act of 1940, and the "solely incidental" prong of the broker-dealer exclusion from the Advisers Act.
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Rules and Guidance
The Securities and Exchange Commission provides information and resources on Regulation Best Interest, Form CRS and Related Interpretations.
- Regulation Best Interest & Form CRS
- SEC Press Release: SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures (July 26, 2021)
- Statement on Recent and Upcoming Regulation Best Interest Examinations from the SEC Division of Examinations (December 21, 2020)
- SEC No-Action Letter to Securities Industry and Financial Markets Association (December 23, 2020)
- FAQs – The SEC staff releases FAQs on Reg BI and Form CRS on a rolling basis. View the SEC staff’s most recent FAQs.
- 2021 Report on FINRA’s Examination and Risk Monitoring Program (February 2, 2021)
- FINRA Statement on SEC’s OCIE Risk Alerts for Reg BI and Form CRS (April 8, 2020)
- Reg BI Preparedness Reviews Report (April 8, 2020)
- Reg BI and Form CRS Checklist (August 1, 2019)
FINRA and the SEC have hosted various events related to Reg BI and Form CRS implementation, standards and other guidance. View upcoming and past events.
- 2021 FINRA Annual Conference
- Session: Regulation Best Interest and Form CRS: Recent Observations and What to Expect | Recorded May 20, 2021
- SEC Reg BI Roundtable | October 2020
- Available on the SEC Reg BI/Form CRS page
FINRA Staff Contacts
- James S. Wrona, Vice President and Associate General Counsel, Office of General Counsel (OGC);
- Meredith Cordisco, Associate General Counsel, OGC; or
- Joseph P. Savage, Vice President and Counsel, OGC.