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.

Rules and Guidance

SEC Resources

The Securities and Exchange Commission provides information and resources on Regulation Best Interest, Form CRS and Related Interpretations.

FAQs – The SEC staff releases FAQs on Reg BI and Form CRS on a rolling basis. View the SEC staff’s most recent FAQs. Updated
SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Care Obligations (April 20, 2023) New
Risk Alert: Observations from Broker-Dealer Examinations Related to Regulation Best Interest (January 30, 2023)
SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Conflicts of Interest (August 3, 2022)
Regulation Best Interest & Form CRS
SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Account Recommendations for Retail Investors (March 30, 2022)
SEC Staff Statement by the Standards of Conduct Implementation Committee Regarding Form CRS Disclosures (December 17, 2021)
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)

More sec resources

FINRA Resources

2025 FINRA Annual Regulatory Oversight Report (January 28, 2025) New
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 (October 18, 2023)

More finra resources

Events

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.

2024 FINRA Annual Conference
- Session: The Progression of Regulation Best Interest and Form CRS | May 2024
2023 FINRA Annual Conference
- Session: Current Issues Under Regulation Best Interest and Form CRS
FINRA Unscripted Podcast
- Regulation Best Interest and Form CRS: Two Years In | June 28, 2022
2022 FINRA Annual Conference
- Session: Regulation Best Interest: Lessons Learned | Recorded May 17, 2022
2021 FINRA Annual Conference
- Session: Regulation Best Interest and Form CRS: Recent Observations and What to Expect | Recorded May 20, 2021
2021 FINRA Small Firm Virtual Conference
- Session: Regulation Best Interest and Form CRS | Recorded October 28, 2021
SEC Reg BI Roundtable | October 2020
- Available on the SEC Reg BI/Form CRS page

View previous events

FINRA Staff Contacts

James S. Wrona, Vice President and Associate General Counsel, Office of General Counsel (OGC);
Alicia F. Goldin, Associate General Counsel, OGC; or
Joseph P. Savage, Vice President and Counsel, OGC.

Form CRS Instructions

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

Regulatory Notice 23-20
FINRA Highlights Available Guidance and Resources Related to Regulation Best Interest
12/05/2023
Regulatory Notice 23-08
FINRA Reminds Members of Their Obligations When Selling Private Placements
05/09/2023
Regulatory Notice 20-18
FINRA Amends Its Suitability, Non-Cash Compensation and Capital Acquisition Broker (CAB) Rules in Response to Regulation Best Interest
06/19/2020
Regulatory Notice 20-17
FINRA Revises Rule 4530 Problem Codes for Reporting Customer Complaints and for Filing Documents Online
06/10/2020
Regulatory Notice 19-26
Regulation Best Interest
08/07/2019

Reg BI and Form CRS Enforcement Actions

This webpage highlights enforcement actions brought by FINRA and the SEC that include a Reg BI or Form CRS violation. It is updated on a periodic basis and may not reflect the most recent actions.

FINRA Matters

The chart below lists FINRA disciplinary actions that include a Reg BI or Form CRS violation. For additional information, please visit FINRA Disciplinary Actions Online (and see Important Notes).

* AWC = Letter of Acceptance, Waiver, and Consent
Case ID	Document Type	Firm/Individual	Action Date	Violation(s)
2021072231801	AWC*	Webull Financial LLC	05/08/2025	Form CRS
2018056490325	AWC*	Nicholas J. Schiano	05/08/2025	Reg BI
2018056490329	AWC*	Joseph L. Tranchina	05/08/2025	Reg BI
2022074734102	AWC*	Eduardo Leon	05/08/2025	Reg BI
2018056490330	AWC*	Joseph J. Steward	05/06/2025	Reg BI
2022073421202	AWC*	Pinnacle Investments, LLC	05/01/2025	Reg BI
2018056490328	AWC*	John E. Fendrich, Jr.	05/01/2025	Reg BI
2023077077001	AWC*	Regulus Financial Group, LLC	04/24/2025	Form CRS
2020068655902	AWC*	American Trust Investment Services, Inc.	04/22/2025	Reg BI
2020068655903	AWC*	Scot Barringer	04/22/2025	Reg BI
2021069346201	AWC*	MD Global Partners, LLC	04/11/2025	Reg BI
2023077098101	AWC*	Liberty Partners Financial Services, LLC	04/04/2025	Reg BI
2018056490327	AWC*	Michael J. Dugan	04/01/2025	Reg BI
2021069376701	AWC*	Thurston Springer Financial	03/31/2025	Reg BI & Form CRS
2023077084701	AWC*	Mariner Investment Group	03/18/2025	Reg BI
2019060756501	AWC*	Robinhood Financial, LLC, Robinhood Securities, LLC	03/06/2025	Form CRS
2022075391301	AWC*	Robert W. Baird & Co. Inc., Hefren-Tillotson, Inc.	03/06/2025	Reg BI
2019060753601	AWC*	Cova Capital Partners LLC	02/14/2025	Reg BI
2018056490323	AWC*	Justin R. Deiter	02/06/2025	Reg BI
2022076855801	AWC*	IBN Financial Services, Inc. Timothy E. Evans	01/29/2025	Reg BI
2022076855802	AWC*	Angelo J. Piccone	01/29/2025	Reg BI
2021070498106	AWC*	Alfred S. Vanderlaan	01/22/2025	Reg BI
2022073340901	AWC*	Justin W. Pagel	01/17/2025	Reg BI
2021070498105	AWC*	Matthew I. Turner	01/15/2025	Reg BI
2021069377402	AWC*	Investments for You, Inc.	01/08/2025	Reg BI & Form CRS
2022076365001	AWC*	CIM Securities, LLC	01/07/2025	Reg BI
2021072094101	AWC*	Cambria Capital, LLC	12/17/2024	Reg BI
2023079509301	AWC*	Mary Christine Beslagic	12/12/2024	Reg BI
2021072000902	AWC*	Union Capital Company	12/04/2024	Reg BI
2021069460001	AWC*	Independent Financial Group, LLC	11/27/2024	Reg BI
2018056490321	AWC*	Christopher P. Gallo	11/27/2024	Reg BI
2023080042101	AWC*	CUNA Brokerage Services, Inc.	11/18/2024	Reg BI
2023077080601	AWC*	ACP Securities, LLC	11/15/2024	Form CRS
2021070498104	AWC*	Linda J. Wimsatt	11/15/2024	Reg BI
2022073262401	AWC*	G. research, LLC	11/11/2024	Form CRS
2018056490319	AWC*	Jesse D. Krapf	10/30/2024	Reg BI
2023077597701	AWC*	Victor Alan Lessinger	10/28/2024	Reg BI
2022074096804	AWC*	Investment Network, Inc., Gary L. Arnold	10/16/2024	Reg BI
2021069380601	AWC*	Blaine R. Stahlman	10/16/2024	Reg BI
2022076795001	AWC*	George Snyder IV	10/11/2024	Reg BI
2018056490318	AWC*	George Apolonides also known as George Apollo	10/08/2024	Reg BI
2018056490316	AWC*	Kostas Tsamos also known as Gus Tsamos	10/08/2024	Reg BI
2018056490317	AWC*	Kyle Infinite Manning	10/08/2024	Reg BI
2021069303201	AWC*	Signet Securities, LLC	10/03/2024	Reg BI & Form CRS
2021070875201	AWC*	Park Avenue Securities LLC	09/24/2024	Reg BI
2023080627901	AWC*	Independent Financial Group, LLC	09/23/2024	Reg BI
2017056224501	AWC*	SpeedTrader, Inc.	09/23/2024	Form CRS
2021069395701	AWC*	Dalmore Group LLC	09/17/2024	Reg BI
2021069353202	AWC*	Securities Research, Inc. of Florida	09/13/2024	Reg BI
2023080627902	AWC*	Richard Mireles	09/13/2024	Reg BI
2020068655901	AWC*	Kyle William Chapman	09/05/2024	Reg BI
2021072167901	Orders Accepting Offers of Settlement Related Documents	Stewart Ginn	08/29/2024	Reg BI
2022076491301	AWC*	Christopher Reynolds	08/16/2024	Reg BI
2022073329701	AWC*	JVM Securities, LLC	08/05/2024	Reg BI & From CRS
2021070498103	AWC*	Kim R. Kunz	08/05/2024	Reg BI
2023077092001	AWC*	The Jeffrey Matthews Financial Group, LLC	07/19/2024	Reg BI & From CRS
2022076162101	AWC*	Laura Casey	07/17/2024	Reg BI
2021069353201	AWC*	John Wigmore Reilly III	07/09/2024	Reg BI
2018060263201	AWC*	SI Securities, LLC	07/02/2024	Form CRS
2020067795501	AWC*	Merrill Lynch, Pierce, Fenner & Smith Incorporated	07/01/2024	Reg BI
2022073708202	AWC*	Steve Allen Moise	06/24/2024	Reg BI
2021070498102	AWC*	Alan Mason	05/22/2024	Reg BI
2019064935602	AWC*	Kayan Securities, Inc., Yong Soo Kim	05/16/2024	Reg BI
2021069350301	AWC*	Murray Securities, Inc.	04/08/2024	Reg BI & Form CRS
2021069335701	AWC*	Robert Spaulding Gleason Jr.	04/05/2024	Reg BI
2019062948102	OHO Decisions Related Documents	James Brett Stuart	03/15/2024	Reg BI
2022074025801	AWC*	Joseph C. Desapio	03/08/2024	Reg BI
2018056490309	AWC*	Tory A. Duggins	01/19/2024	Reg BI
2017052494701	AWC*	LPL Financial LLC	12/27/2023	Reg BI
2021069362101	AWC*	RCM Securities	12/15/2023	Form CRS
2022077257801	AWC*	Malay Kumar	11/30/2023	Reg BI
2019060753505	AWC*	Troy Allen Orlando	11/22/2023	Reg BI
2018056490307	AWC*	Joao A. Pinto	11/21/2023	Reg BI
2021072389001	Orders Accepting Offers of Settlement Related Documents	Christopher Booth Kennedy	11/17/2023	Reg BI
2019061852801	AWC*	Haywood Securities (USA) Inc.	11/13/2023	Reg BI
2022073332301	AWC*	Parsonex Capital Markets, LLC	11/08/2023	Form CRS
2019062948102	Complaints	James Brett Stuart	10/27/2023	Reg BI
2021072389001	Complaints	Stewart Ginn	10/17/2023	Reg BI
2022076459305	AWC*	Nicholas Michael Caruso	10/12/2023	Reg BI
2021072389001	Complaints Related Documents	Christopher Booth Kennedy	09/22/2023	Reg BI
2023079691201	AWC*	Elba M. Nogueras	09/18/2023	Reg BI
2021070851501	AWC*	Network 1 Financial Securities, Inc. Michael Molinaro	08/31/2023	Reg BI
2022076459303	AWC*	Monmouth Capital Management LLC News Release	07/06/2023	Reg BI & Form CRS
2021069376801	AWC*	American Wealth Management, Inc.	05/19/2023	Form CRS
2022076103701	AWC*	Axos Invest LLC	05/19/2023	Form CRS
2021069357901	AWC*	Highlander Capital Group, Inc.	05/19/2023	Form CRS
2021069277101	AWC*	Harpeth Securities, LLC	05/19/2023	Reg BI & Form CRS
2021069380201	AWC*	DMK Advisor Group, Inc.	05/19/2023	Reg BI & Form CRS
2020065599101	AWC *	SW Financial News Release	05/12/2023	Reg BI
2021071134401	AWC *	Jose M. Candelario Padilla	03/10/2023	Reg BI
2021069365001	AWC *	Long Island Financial Group, Inc.	02/10/2023	Reg BI & Form CRS
2020065683301	AWC *	Todd Anthony Cirella	01/31/2023	Reg BI
2020065683302	AWC *	Edward Scott Short	01/31/2023	Reg BI
2021069405501	AWC *	Charles V. Malico	10/11/2022	Reg BI
2021072107601	AWC*	Aaron Capital Incorporated	05/25/2022	Form CRS

SEC Matters

The chart below highlights SEC Enforcement actions against broker-dealers and associated persons that include a Reg BI or Form CRS violation. It is not intended to be a comprehensive listing of individual matters and subsequent history. For additional information regarding SEC enforcement, please visit https://www.sec.gov/page/litigation.

Document	Summary	Date	Violation(s)
Administrative Proceedings File No. 3-22451	In the Matter of Centaurus Financial, Inc., Debbie M. Cavanaugh, Michael Y. Hamilton, Dana Matthew Hawkins, and Timothy N. Tremblay	02/07/2025	Reg BI
Litigation Release No. 26191	SEC Announces Settlement of Fraud and Regulation Best Interest Violations Against Christopher Booth Kennedy, a Former Broker	12/10/2024	Reg BI
Administrative Proceedings File Number: 3-22323 Related Documents	The Securities and Exchange Commission today announced settled charges against Texas-based broker-dealer Lion Street Financial, LLC (“Lion Street”) for violating Regulation Best Interest.	11/15/2024	Reg BI
SEC Press Release 2024-178 Related Documents	JP Morgan Affiliates to Pay $151 Million to Resolve SEC Enforcement Actions	10/31/2024	Reg BI
Litigation Release No. 26161 Related Documents	SEC Charges Registered Representative with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts	10/16/2024	Reg BI
Administrative Proceedings File Number: 3-22259 Related Documents	SEC Charges Broker-Dealer with Violations of Regulation Best Interest for Excessive Trading in Customer Accounts	10/16/2024	Reg BI
Administrative Proceedings File Number: 3-22226	In the Matter of Thrivent Investment Management, Inc.	10/02/2024	Reg BI
Administrative Proceedings File Number: 3-22217	In the Matter of Moloney Securities Co., Inc.; Donald R. Hancock; David F. La Grange; and Laura B. Barnes	09/27/2024	Reg BI
Litigation Release No. 26139 Related Documents	SEC Charges Broker with Violating Regulation Best Interest	09/27/2024	Reg BI
Administrative Proceedings File Numbers: 3-22198; 3-22199; 3-22200; 3-22201; 3-22202	SEC Charges Five Broker-Dealers for Failure to Meet Form CRS Obligations	09/25/2024	Form CRS
Administrative Proceedings File Number: 3-22142 Related Documents	In the Matter of First Horizon Advisors, Inc.	09/18/2024	Reg BI
Administrative Proceedings File Number: 3-22117	In the Matter of State Farm VP Management Corp.	09/16/2024	Reg BI & Form CRS
Litigation Release No. 26065 Related Documents	SEC Announces Settlement of Regulation Best Interest Matter with Western International Securities, Inc. and Five Individual Brokers	07/31/2024	Reg BI
Release No. 34-100618	In the Matter of Western International Securities, Inc.	07/30/2024	Reg BI
Administrative Proceedings File No. 3-21983; 3-21984	SEC Charges Broker-Dealer and Investment Adviser and Registered Representative with Violating Regulation Best Interest	07/29/2024	Reg BI
Administrative Proceedings File No. 3-21945	SEC Charges Ohio Broker-Dealer and Investment Adviser with Violations of Regulation BI and the Investment Advisers Act for Failure to Address Conflicts of Interest	05/21/2024	Reg BI
SEC press release 2024-22	SEC Charges TIAA Subsidiary for Failing to Act in the Best Interest of Retail Customers	02/16/2024	Reg BI
Administrative Proceedings File No. 3-21800	SEC Charges Broker-Dealer and Two Registered Representatives with Violations of Regulation Best Interest for Excessive Trading in Customer Accounts	11/20/2023	Reg BI
Release No. 34-98609	In the Matter of Citigroup Global Markets, Inc. and Citi International Financial Services, LLC, now known as Insigneo Financial Services, LLC, Respondents.	09/28/2023	Reg BI & Form CRS
Administrative Proceedings File No. 3-21762 Related Documents	In the Matter of Salomon Whitney, LLC, Respondent.	09/28/2023	Reg BI
Litigation Release No. 25863	SEC Charges Five Registered Representatives with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts	09/28/2023	Reg BI
Release No. 34-98478	In the Matter of Carl M. Hennig, Inc., Respondent.	09/22/2023	Reg BI
SEC press release 2023-127	SEC Charges Former Army Financial Counselor Who Defrauded Gold Star Family Members	07/07/2023	Reg BI
SEC press release 2022-110 Related Document	SEC Charges Firm and Five Brokers with Violations of Reg BI	06/16/2022	Reg BI
SEC press release 2022-27	SEC Charges 12 Additional Financial Firms for Failure to Meet Form CRS Obligations	02/15/2022	Form CRS
SEC press release 2021-139	SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures	07/26/2021	Form CRS

2023 Report on FINRAs Examination and Risk Monitoring Program
Reg BI and Form CRS
The Best Execution, Outside Business Activities and Private Securities Transactions, Private Placements, and Reg BI and Form CRS sections of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
January 10, 2023
2022 Report on FINRAs Examination and Risk Monitoring Program
Reg BI and Form CRS
The Reg BI and Form CRS section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.
February 09, 2022
Podcast
Regulation Best Interest: Implementing a New Standard of Conduct
As 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
Blog Post
Highlights from FINRA’s Reg BI Conference for Member Firms
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

SEC PUBLIC STATEMENT: Confirmation of June 30 Compliance Date for Regulation Best Interest and Form CRS
June 15, 2020

FINRA Statement on SEC’s OCIE Risk Alerts for Reg BI and Form CRS
April 8, 2020

SEC Press Release: SEC Adopts Rules and Interpretations to Enhance Protections and Preserve Choice for Retail Investors in Their Relationships With Financial Professionals
June 5, 2019

Investor Education
SEC Regulation Best Interest and Form CRS: What You Need to Know
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. Form CRS is a relationship summary disclosure that broker-dealers and SEC-registered investment advisers must provide retail investors.