The Securities and Exchange Commission (SEC) 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. 

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. 

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