Recently, the U.S. Securities and Exchange Commission’s (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert to provide broker-dealers with guidance on examinations regarding regulation Best Interest (“Reg BI”). Reg BI requires that when broker-dealers make a recommendation regarding securities to a retail customer it must act in the best interest of the customer, without placing its own financial or other interest ahead of the retail customer’s interest. The Financial Industry Regulatory Authority (“FINRA”) also ...
Broker-dealers (“BDs”) should be aware that, on June 5, 2019, the SEC adopted “Regulation Best Interest” (“Reg BI”), which requires BDs and their registered representatives (“RRs”) to “act in the best interest of the retail customer,” when “making a recommendation” regarding “a securities transaction or investment strategy.” In addition, the SEC’s new rules require BDs to deliver Form CRS relationship summaries (“Form CRS”) to retail customers. BDs will need to be in compliance with Reg BI and Form CRS, which were accompanied by more than ...
Blog Editors
Recent Updates
- Watch: How to Protect Your Business from a Counterparty's Financial Crisis – Speaking of Litigation
- First DOJ DEI False Claims Act Investigation Settlement Fetches $17 Million
- DOJ Creates National Fraud Enforcement Division: What It Means for Fraud Enforcement in America
- State AGs in Action: Health Care Enforcement in 2026 – Speaking of Litigation Video Podcast
- The DOJ’s New Corporate Enforcement Policy: A Familiar but Now Nationally Unified Framework for Voluntary Self-Disclosure