Obligations of Regulation Best Interest

Overview

On June 5, 2019, the Securities and Exchange Commission adopted a package of rulemakings and interpretations designed to establish a “best interest” standard of conduct, Regulation Best Interest (Reg BI ), for broker-dealers and associated persons. 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.
Firms must comply with Reg BI and Form CRS by June 30, 2020. This course focuses on the four primary obligations of broker-dealers and associated persons when making a recommendation of any securities transaction or investment strategy involving securities (including account recommendations) to a retail customer.

Learning Objectives

Upon completion of this course, you should be able to:

  • Describe the nature and scope of Regulation Best Interest
  • Describe the requirements of the Disclosure Obligation prior to recommendations
  • Describe the diligence required to meet the requirements of the Care Obligation
  • Identify the firm policies and procedures required to meet the Conflict of Interest Obligation
  • Identify the firm policies and procedures required to meet the Compliance Obligation
  • Describe the record-making and recordkeeping requirements of Regulation Best Interest

Designed For

Registered Representatives and Investment Advisers 
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