MyComplianceOffice Blog

On April 7 the SEC published two Risk Alerts providing broker-dealers and investment advisors with information on the expected scope of initial Regulation Best Interest enforcement. The guidance indicated that initial exams will focus on evidence that firms have made “good faith” efforts to comply.

On April 2 the SEC issued a statement indicating that despite the disruption of the COVID-19 pandemic, the June 30, 2020 deadline for Regulation Best Interest (Reg BI) would not be deferred.

Will you be ready to comply with Regulation Best Interest on June 30, 2020? The new rules and interpretations outline requirements instructing broker-dealers and investment advisors to not put their own financial interests ahead of the best interests of retail customers when making recommendations and to address conflicts of interest.

On June 5, 2019, the SEC announced new rules and interpretations clarifying required standards of conduct for broker-dealers and investment advisers when advising retail customers. Firms must be ready to comply with Regulation Best Interest and Form CRS by June 30, 2020.