What happened?

On June 5, the US Securities and Exchange Commission (SEC) adopted Regulation Best Interest (Reg. BI), a new rule establishing a “best interest” standard of conduct for broker dealers and their natural associated persons when making recommendations to retail customers of any securities transaction or investment strategy involving securities or regarding the opening of an account.

The compliance effective date of June 30, 2020, for Reg. BI will be upon us before we know it. This legal alert provides an overview of Reg. BI, and offers ten implementation considerations for firms to consider as they start to prepare for compliance with the new rule.