Broker Check

Regulation Best Interest (Reg BI) Explained

| August 12, 2020

June 30, 2020, marked the implementation date of regulations passed by the Securities and Exchange Commission (SEC) more than a year ago.  Called "Regulation Best Interest" or "Reg BI," the rules include a new standard of care for broker-dealers, as well as new disclosure and compliance obligations. You will see some of the changes manifested in a new standard communication referred to as, a customer relationship summary called Form CRS, required under a separate regulation issued by the SEC — that your broker-dealer and/or investment adviser will provide.

There is a lot to Reg BI and Form CRS, but it really boils down to one thing — transparency.

To continue reading more about Reg BI including three things you need to know about how the new rules specifically affect you as an investor open the attachment provided below.