SEC Regulation Best Interest: What You Need to Know

[Originally broadcast on August 22, 2019]

Description: The Securities and Exchange Commission recently passed by a 3-1 vote its controversial Regulation Best Interest as part of the advice-standards package. This rulemaking is designed to bring the legal requirements and mandated disclosures for BDs in line with reasonable investor expectations.

Nearly 800 pages, Reg BI differs from the original proposal issued last April in that it now expressly applies to account recommendations, including recommendations to roll over or transfer assets in a workplace retirement plan account to an IRA, and recommendations to take a plan distribution. Reg BI also eliminates sales contests, sales quotas, bonuses and non-cash compensation that are based on the sale of specific securities or specific types of securities within a limited period of time. It also expressly requires policies and procedures designed to satisfy Regulation Best Interest.

Join RegEd and Eversheds Sutherland (US) for an overview of Reg BI and insight into what you should expect from the recent rulemaking. The session featured Ben Marzouk, Brian Rubin, and Issa Hanna from Eversheds Sutherland.