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.

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Regulation Best Interest 5 Years Later

Abstract

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