SEC Regulation Best Interest (Reg BI)
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.
17 CFR 240.15l-1
Regulation Best Interest
17 CFR 240.17a-3
Records to Be Made by Certain Exchange Members, Brokers and Dealers
17 CFR 240.17a-4
Records to Be Preserved by Certain Exchange Members, Brokers and Dealers
17 CFR 240.17a-14
Form CRS, for Preparation, Filing and Delivery of Form CRS
17 CFR 249.641
Form CRS, Relationship Summary for Brokers and Dealers Providing Services to Retail Investors, Pursuant to §240.17a-14 of This Chapter
- FINRA Amends Its Suitability, Non-Cash Compensation and Capital Acquisition Broker (CAB) Rules in Response to Regulation Best Interest
- FINRA Revises Rule 4530 Problem Codes for Reporting Customer Complaints and for Filing Documents Online
- Regulation Best Interest
- PodcastAs of June 30, 2020, the U.S. Securities and Exchange Commission’s Regulation Best Interest—or Reg BI—is officially in effect. What does a post implementation-date world look like? And how is FINRA working to ensure a consistent approach to examining around and enforcing the new regulation? Tune in to learn more.July 07, 2020
- Virtual Conference PanelAttend this session to hear from OCIE, FINRA staff and industry experts as they discuss how they intend to examine and inspect for compliance with Reg BI, including a discussion of implementation challenges, frequently asked questions, and issues that are being considered.May 12, 2020
- Virtual Conference PanelJoin panelists as they discuss Regulation Best Interest and Form CRS, its impact on the industry and effective practices to help broker-dealers manage their obligations.May 06, 2020
- Blog Post
FINRA hosted a Regulation Best Interest (Reg BI) conference on Dec.18, 2019 in Washington, D.C. for firms to discuss best practices and approaches. Approximately 500 compliance officers and other industry participants attended the one-day event focused on assisting firms as they gear up for the June 30, 2020 compliance date for the SEC’s Reg BI and Form CRS.January 08, 2020
- PodcastSoon brokerage firms will have to comply with a new standard of conduct when working with retail clients with the implementation of Regulation Best Interest. What is the new standard? What will firms need to do to comply? Tune in to learn more from FINRA’s Chief Legal Officer.October 15, 2019
- Investor EducationOn June 30, 2020, new rules take effect that are designed to help retail investors better understand and navigate their relationships with investment professionals and make informed choices about the type of relationship for their needs and circumstances. The new Securities and Exchange Commission (SEC) rules, among other things, enhance the standard of conduct broker-dealers must provide to their retail customers and require broker-dealers and SEC-registered investment advisers (RIAs) to provide a new relationship summary – Form CRS – to retail investors.