Regulation Best Interest (Reg BI)

What this video covers

• Who Reg BI applies to: retail customers (natural persons using recommendations for personal, family, or household purposes) versus institutional investors who stay under FINRA suitability
• Why Regulation Best Interest (Reg BI) does NOT replace the FINRA suitability rule, and how both standards can apply at the same broker-dealer (BD) depending on the customer
• The four component obligations (Disclosure, Care, Conflict of Interest, Compliance) and which two have no direct parallel in FINRA suitability
• Why every one of the four obligations requires written documentation, and what counts as written disclosure versus written policies and procedures
• Form Customer Relationship Summary (Form CRS): the 2-page maximum for a BD, what it must describe, and the "before or at the earliest of a recommendation, order, or account opening" delivery rule
• How the Care Obligation raises the bar above suitability by forcing a cost comparison across reasonably available alternatives, and the explicit ban on placing the firm's interests ahead of the customer's
• Why a pension fund recommendation is governed by FINRA suitability, not Reg BI, and other institutional gotchas the exam likes to bury in the fact pattern