Insights

May
01
Regulation BI, is your Firm ready?

Regulation Best Interest (or "Reg BI") is an SEC mandate that every broker/dealer and investment adviser should understand. Form CRS must be provided to all natural persons who are investors/customers of Broker/Dealers and Investment Advisers. The following link will provide you with additional information should you wish to explore it further: https://www.sec.gov/rules/final/2019/34-86031.pdf


As of June 30, 2020, all broker-dealers and investment advisers should have policies and procedures in place to comply with SEC Rule 15l-1 which covers "Regulation Best Interest" or “Reg. BI”. Unlike FINRA's "Suitability" rule (FINRA Rule 2111), which applies only to “retail investors” (the criteria used is asset-based), Reg BI applies to all natural persons and their legal representatives (“retail customers”), regardless of such persons’ wealth, sophistication, or another status set forth under federal securities rules and regulations.


To ensure timely and effective compliance with Regulation BI, Integrated Solutions can guide your firm and help in the preparation of updated Written Supervisory Procedures, along with appropriate addendums that address Regulation BI. Adherence to the rule is contingent upon tailoring Form CRS to your firm’s business.


Key Point:


Beginning May 1, 2020 and with a June 30th deadline, both Broker-Dealers and Investment Advisors will be required to file Form CRS with the SEC through either WebCRD, or IARD. Integrated Solutions can prepare and submit these filings on your behalf. Please email us directly if you would like to discuss Reg BI and what guidance we may offer you. We will be pleased to assist in the update of your Written Supervisory Procedures, the filing of Form CRS, and also offer Continued Education training on the matter.


We look forward to your inquiries and help you comply with the new regulation. Please email RegBICompliance@integrated.solutions and a member of our compliance staff will revert promptly.



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