Reg BI

Regulation Best Interest, adopted by the SEC, raised the standard of conduct for broker-dealers when they make recommendations to retail customers. Rather than the older suitability standard, a recommendation must be in the customer’s best interest at the time it is made, and the firm must address the conflicts of interest around it.

Reg BI matters in transitions and onboarding because recommending a move — a new account type, a rollover, or a change in products — is itself a recommendation that has to be documented and justified. Clean disclosure and a defensible record are part of doing a transition the right way.

This entry is a plain-language summary, not legal or compliance advice; firms should follow their own compliance guidance and the SEC’s rule text.