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.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.