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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.

On This Page

Rules and Guidance


SEC Resources on RegBI

 

 

SEC Resources

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

 

 

Events


Reg BI 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.

 

FINRA Staff Contacts

 

  • FINRA Highlights Available Guidance and Resources Related to Regulation Best Interest
    12/05/2023
  • FINRA Reminds Members of Their Obligations When Selling Private Placements
    05/09/2023
  • FINRA Amends Its Suitability, Non-Cash Compensation and Capital Acquisition Broker (CAB) Rules in Response to Regulation Best Interest
    06/19/2020
  • FINRA Revises Rule 4530 Problem Codes for Reporting Customer Complaints and for Filing Documents Online
    06/10/2020
  • 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 IDDocument TypeFirm/IndividualAction DateViolation(s)Related Material
2018056490309AWC*Tory A. Duggins01/19/2024Reg BI

 
2017052494701AWC*LPL Financial LLC12/27/2023Reg BI 
2021069362101AWC*RCM Securities12/15/2023Form CRS 
2022077257801AWC*Malay Kumar11/30/2023Reg BI 
2019060753505AWC*Troy Allen Orlando11/22/2023Reg BI 
2018056490307AWC*Joao A. Pinto11/21/2023Reg BI 
2021072389001

Orders Accepting Offers of Settlement

Related Documents

Christopher Booth Kennedy11/17/2023Reg BI 
2019061852801AWC*Haywood Securities (USA) Inc.11/13/2023Reg BI 
2022073332301AWC* Parsonex Capital Markets, LLC11/08/2023Form CRS 
2019062948102Complaints James Brett Stuart10/27/2023Reg BI 
2021072389001Complaints Stewart Ginn10/17/2023Reg BI 
2022076459305AWC* Nicholas Michael Caruso10/12/2023Reg BI 
2021072389001

Complaints

Related Documents

 Christopher Booth Kennedy9/22/2023Reg BI 
2023079691201AWC* Elba M. Nogueras9/18/2023Reg BI 
2021070851501AWC* Network 1 Financial Securities, Inc.
 Michael Molinaro
8/31/2023Reg BI 
2022076459303AWC* Monmouth Capital Management LLC7/6/2023Reg BI & Form CRSNews Release
2021069376801AWC* American Wealth Management, Inc.5/19/2023Form CRS 
2022076103701AWC* Axos Invest LLC5/19/2023Form CRS 
2021069357901AWC* Highlander Capital Group, Inc.5/19/2023Form CRS 
2021069277101AWC* Harpeth Securities, LLC5/19/2023Reg BI & Form CRS 
2021069380201AWC* DMK Advisor Group, Inc.5/19/2023Reg BI & Form CRS 
2020065599101AWC * SW Financial5/12/2023Reg BINews Release
2021071134401AWC *  Jose M. Candelario Padilla3/10/2023Reg BI 
2021069365001AWC *  Long Island Financial Group, Inc.2/10/2023Reg BI &
Form CRS
 
2020065683301AWC *  Todd Anthony Cirella1/31/2023Reg BI 
2020065683302AWC *  Edward Scott Short1/31/2023Reg BI 
2021069405501AWC *  Charles V. Malico10/11/2022Reg BI 
2021072107601AWC*  Aaron Capital Incorporated5/25/2022Form 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.

DocumentSummaryDateViolation(s)
SEC press release 2024-22SEC Charges TIAA Subsidiary for Failing to Act in the Best Interest of Retail Customers2/16/2024Reg BI
Administrative Proceedings File No. 3-21800SEC Charges Broker-Dealer and Two Registered Representatives with Violations of Regulation Best Interest for Excessive Trading in Customer Accounts11/20/23Reg BI
Release No. 34-98609In the Matter of Citigroup Global Markets, Inc. and Citi International Financial Services, LLC, now known as Insigneo Financial Services, LLC, Respondents.9/28/2023Reg BI & Form CRS
Release No. 34-98619In the Matter of Salomon Whitney, LLC, Respondent.9/28/2023Reg BI
Litigation Release No. 25863SEC Charges Five Registered Representatives with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts9/28/2023Reg BI
Release No. 34-98478In the Matter of Carl M. Hennig, Inc., Respondent.9/22/2023Reg BI
SEC press release 2023-127SEC Charges Former Army Financial Counselor Who Defrauded Gold Star Family Members7/7/2023Reg BI
SEC press release 2022-110SEC Charges Firm and Five Brokers with Violations of Reg BI6/16/2022Reg BI
SEC press release 2022-27SEC Charges 12 Additional Financial Firms for Failure to Meet Form CRS Obligations2/15/2022Form CRS
SEC press release 2021-139SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures7/26/2021Form CRS
  • 2023 Report on FINRAs Examination and Risk Monitoring Program
    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
  • Media Center
    We are marking the second anniversary of the implementation of Regulation Best Interest and Form CRS with a deep dive into everything FINRA has learned on the topic over the last two years. On this episode, we hear how FINRA is examining around the new regulations and explore some of the common problem areas and effective practices.
    June 28, 2022
  • 2022 Report on FINRAs Examination and Risk Monitoring Program
    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
    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
  • Virtual Conference Panel
    Attend 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 Panel
    Join 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
  • Podcast
    Soon 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