The SEC's Regulation Best Interest requires broker-dealer firms to comply with the best interest standard of conduct when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. The new rule will also require both broker-dealer firms and RIAs to produce Customer Relationship Forms for their clients. Finra has started conducting “preparedness reviews” of its member firms to check their compliance with the rules and to assist where they can with understanding how to comply. The SEC has set June 30, 2020, as the compliance deadline for the implementation of the rule, which the regulator believes gives “sufficient time” for firms to comply with the requirements.

Is your firm ready to comply with Reg BI?