A summary of resources for navigating Reg BI
On June 30, 2020, the Security and Exchange Commission’s Regulation Best Interest (Reg BI) goes into effect for broker-dealers, registered investment advisers, and dual registrants to enhance the transparency and quality of investors’ relationships. But that’s just the beginning of the journey. This page contains details about available Deloitte resources to help our clients implement the Reg BI rule in their firms.
Background
Reg BI is a new rule under the Securities Exchange Act, establishing a standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. Reg BI imposes a new standard, beyond existing suitability obligations, to act in the best interest of the retail customer at the time a recommendation is made without placing the financial or other interest of the broker-dealers or associated persons ahead of the interest of the retail customers. This includes recommendations of account types, rollovers or transfer of assets, as well as implicit hold recommendations arising from any agreed upon account monitoring arrangement.
While the standard takes effect in late June, that’s just the beginning. We expect that the SEC will issue additional guidance and Deloitte has the capabilities to help firms design and implement Day 2 solutions. Read on.
A firm’s guide to the implementation of Reg BI and the form CRS relationship summary
Read the Securities Industry and Financial Markets Association (SIFMA) guide which aims to assist firms in understanding the various Reg BI and form CRS requirements and their potential impacts. The guide includes recommendations for developing a Reg BI implementation governance program and an outline for and their potential impact on firms.
The impact of SEC’s new advice standards on broker-dealers and investment advisers
The SEC best interest rule, including forms ADV and CRS, will create a lot of work for registered investment advisors, broker-dealers, and dual registrants. This publication shares tips on how to prepare for compliance.
2020 outlook: Navigating a new year of regulatory trends
How can your organization proactively manage—and benefit from—today’s shifting regulatory landscape? Our annual regulatory outlook series provides a forward look at some of the regulatory trends we anticipate will likely have a significant impact on the market and our clients’ businesses in 2020. The issues outlined in each of the reports provide a starting point for an important dialogue about future regulatory challenges and opportunities to help executives stay ahead of evolving requirements and trends. Reg BI is specifically addressed in the capital markets and investment management publications.