Regulation Best Interest 5 Years Later

October 2025Regulation

Abstract

The adoption of Regulation Best Interest (“Reg BI”) marked one of the most consequential shifts in US securities regulation since the Securities Exchange Act of 1934. It replaced the long-standing “suitability” framework with a new “best interest” standard that applies whenever a broker-dealer recommends a securities transaction or investment strategy to a retail customer. Effective June 30, 2020, Reg BI was intended to align broker conduct with the reasonable expectations of retail investors while preserving the broker-dealer model’s transactional nature . It introduced four integrated obligations, Disclosure, Care, Conflict of Interest, and Compliance, that together establish a comprehensive conduct framework.

Subscribe to reador

In its aftermath, the financial crash of 2008-2009 was often blamed upon the “light touch” approach of the Blair/Brown New Labour government to regulation of the City. This followed the...Read more

Anthony Philpott

Barrister, Barrister (Direct Public Access and Authorised Litigator) UK - AP Legal Direct, UK

When the Referee Rewrites the Rulebook: Why FIFA's Governance Dilemma Matters to Every General Counsel

Governance Is Tested When Rules Become Inconvenient Every institution eventually encounters a defining moment. It is rarely triggered by a financial crisis, regulatory investigation or reputational scandal. Rather, it arises when...Read more

Jeffery Tan

Group General Counsel & Chief Sustainability Officer, Jardine Cycle & Carriage Limited, Singapore

Reforming Shareholders’ Meetings in Italy: Considerations on the Emerging Reform of the Consolidated Finance Act

While this article was in proof, the Italian Government approved the reform of the capital markets framework. At the time of writing, the final consolidated text, although in line with...Read more

Regulation Best Interest 5 Years Later

Abstract

Related Papers