Broker-dealers have about four months before the Securities and Exchange Commission's Regulation Best Interest becomes the new standard of care for selling securities in the retail market.
Like it or not, come June 30, Reg BI will be enforceable. Recommendations to buy, sell, or hold an investment will have to be done in investors' best interests. Satisfying that standard will require new duties of care, disclosure, conflict of interest, and compliance.
Failure to comply with any of the four components of the standard will result in violation of the rule in total, according to securities attorneys with Drinker Biddle.
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