In June of 2019, The SEC adopted “Regulation Best Interest” which establishes a new standard of conduct under the Securities Exchange Act of 1934. As part of the regulation, firms are required to satisfy specified component obligations as part of their general obligations under the new rule, which goes into effect in June of 2020.
Depending on the structure of your firm, Reg BI may require disclosures that are specific to each of your representatives. Specifically, there are requirements in the first two obligation definitions, “Disclosures,” which focuses on the relationships between your firm and your retail customer, and “Care,” which requires exercising reasonable diligence, care, and skill in making recommendations. You may have representative-specific conflicts of interest, compensation structures, and/or fee arrangements that need to be disclosed under these obligations.
Stay on top of your compliance obligations by utilizing NRS ComplianceGuardian™ and our BI Disclosures solution. Our solution can help with the collection, compilation and notification of these obligations.