SEC Regulation Best Interest (Reg BI)
The SEC's Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934 establishes a "best interest" standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
As part of the rulemaking package, the SEC also adopted new rules and forms to require broker-dealers and investment advisers to provide a brief relationship summary, Form CRS, to retail investors. In addition, the SEC published interpretations concerning investment advisers’ standard of conduct under the Investment Advisers Act of 1940, and the "solely incidental" prong of the broker-dealer exclusion from the Advisers Act.
On This Page
Rules and Guidance
SEC Resources
The Securities and Exchange Commission provides information and resources on Regulation Best Interest, Form CRS and Related Interpretations.
- FAQs – The SEC staff releases FAQs on Reg BI and Form CRS on a rolling basis. View the SEC staff’s most recent FAQs. Updated
- SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Care Obligations (April 20, 2023) New
- Risk Alert: Observations from Broker-Dealer Examinations Related to Regulation Best Interest (January 30, 2023)
- SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Conflicts of Interest (August 3, 2022)
- Regulation Best Interest & Form CRS
- SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Account Recommendations for Retail Investors (March 30, 2022)
- SEC Staff Statement by the Standards of Conduct Implementation Committee Regarding Form CRS Disclosures (December 17, 2021)
- SEC Press Release: SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures (July 26, 2021)
- Statement on Recent and Upcoming Regulation Best Interest Examinations from the SEC Division of Examinations (December 21, 2020)
- SEC No-Action Letter to Securities Industry and Financial Markets Association (December 23, 2020)
FINRA Resources
- 2024 FINRA Annual Regulatory Oversight Report (January 9, 2024) New
- FINRA Statement on SEC’s OCIE Risk Alerts for Reg BI and Form CRS (April 8, 2020)
- Reg BI Preparedness Reviews Report (April 8, 2020)
- Reg BI and Form CRS Checklist (October 18, 2023)
Events
FINRA and the SEC have hosted various events related to Reg BI and Form CRS implementation, standards and other guidance. View upcoming and past events.
- 2024 FINRA Annual Conference
- Session: The Progression of Regulation Best Interest and Form CRS | May 2024
- 2023 FINRA Annual Conference
- FINRA Unscripted Podcast
- Regulation Best Interest and Form CRS: Two Years In | June 28, 2022
- 2022 FINRA Annual Conference
- Session: Regulation Best Interest: Lessons Learned | Recorded May 17, 2022
- 2021 FINRA Annual Conference
- Session: Regulation Best Interest and Form CRS: Recent Observations and What to Expect | Recorded May 20, 2021
- 2021 FINRA Small Firm Virtual Conference
- Session: Regulation Best Interest and Form CRS | Recorded October 28, 2021
- SEC Reg BI Roundtable | October 2020
- Available on the SEC Reg BI/Form CRS page
FINRA Staff Contacts
- James S. Wrona, Vice President and Associate General Counsel, Office of General Counsel (OGC);
- Alicia F. Goldin, Associate General Counsel, OGC; or
- Joseph P. Savage, Vice President and Counsel, OGC.
17 CFR 240.15l-1
Regulation Best Interest
17 CFR 240.17a-3
Records to Be Made by Certain Exchange Members, Brokers and Dealers
17 CFR 240.17a-4
Records to Be Preserved by Certain Exchange Members, Brokers and Dealers
17 CFR 240.17a-14
Form CRS, for Preparation, Filing and Delivery of Form CRS
17 CFR 249.641
Form CRS, Relationship Summary for Brokers and Dealers Providing Services to Retail Investors, Pursuant to §240.17a-14 of This Chapter
- FINRA Highlights Available Guidance and Resources Related to Regulation Best Interest12/05/2023
- FINRA Reminds Members of Their Obligations When Selling Private Placements05/09/2023
- FINRA Amends Its Suitability, Non-Cash Compensation and Capital Acquisition Broker (CAB) Rules in Response to Regulation Best Interest06/19/2020
- FINRA Revises Rule 4530 Problem Codes for Reporting Customer Complaints and for Filing Documents Online06/10/2020
- Regulation Best Interest08/07/2019
Reg BI and Form CRS Enforcement Actions
This webpage highlights enforcement actions brought by FINRA and the SEC that include a Reg BI or Form CRS violation. It is updated on a periodic basis and may not reflect the most recent actions.
FINRA Matters
The chart below lists FINRA disciplinary actions that include a Reg BI or Form CRS violation. For additional information, please visit FINRA Disciplinary Actions Online (and see Important Notes).
| Case ID | Document Type | Firm/Individual | Action Date | Violation(s) | Related Material |
|---|---|---|---|---|---|
| 2023080042101 | AWC* | CUNA Brokerage Services, Inc. | 11/18/2024 | Reg BI | |
| 2023077080601 | AWC* | ACP Securities, LLC | 11/15/2024 | Form CRS | |
| 2021070498104 | AWC* | Linda J. Wimsatt | 11/15/2024 | Reg BI | |
| 2022073262401 | AWC* | G. research, LLC | 11/11/2024 | Form CRS | |
| 2018056490319 | AWC* | Jesse D. Krapf | 10/30/2024 | Reg BI | |
| 2023077597701 | AWC* | Victor Alan Lessinger | 10/28/2024 | Reg BI | |
| 2022074096804 | AWC* | Investment Network, Inc., Gary L. Arnold | 10/16/2024 | Reg BI | |
| 2021069380601 | AWC* | Blaine R. Stahlman | 10/16/2024 | Reg BI | |
| 2022076795001 | AWC* | George Snyder IV | 10/11/2024 | Reg BI | |
| 2018056490318 | AWC* | George Apolonides also known as George Apollo | 10/8/2024 | Reg BI | |
| 2018056490316 | AWC* | Kostas Tsamos also known as Gus Tsamos | 10/8/2024 | Reg BI | |
| 2018056490317 | AWC* | Kyle Infinite Manning | 10/8/2024 | Reg BI | |
| 2021069303201 | AWC* | Signet Securities, LLC | 10/3/2024 | Reg BI & Form CRS | |
| 2021070875201 | AWC* | Park Avenue Securities LLC | 9/24/2024 | Reg BI | |
| 2023080627901 | AWC* | Independent Financial Group, LLC | 9/23/2024 | Reg BI | |
| 2017056224501 | AWC* | SpeedTrader, Inc. | 9/23/2024 | Form CRS | |
| 2021069395701 | AWC* | Dalmore Group LLC | 9/17/2024 | Reg BI | |
| 2021069353202 | AWC* | Securities Research, Inc. of Florida | 9/13/2024 | Reg BI | |
| 2023080627902 | AWC* | Richard Mireles | 9/13/2024 | Reg BI | |
| 2020068655901 | AWC* | Kyle William Chapman | 9/5/2024 | Reg BI | |
| 2021072167901 | Orders Accepting Offers of Settlement | Stewart Ginn | 8/29/2024 | Reg BI | |
| 2022076491301 | AWC* | Christopher Reynolds | 8/16/2024 | Reg BI | |
| 2022073329701 | AWC* | JVM Securities, LLC | 8/5/2024 | Reg BI & From CRS | |
| 2021070498103 | AWC* | Kim R. Kunz | 8/5/2024 | Reg BI | |
| 2023077092001 | AWC* | The Jeffrey Matthews Financial Group, LLC | 7/19/2024 | Reg BI & From CRS | |
| 2022076162101 | AWC* | Laura Casey | 7/17/2024 | Reg BI | |
| 2021069353201 | AWC* | John Wigmore Reilly III | 7/9/2024 | Reg BI | |
| 2018060263201 | AWC* | SI Securities, LLC | 7/2/2024 | Form CRS | |
| 2020067795501 | AWC* | Merrill Lynch, Pierce, Fenner & Smith Incorporated | 7/1/2024 | Reg BI | |
| 2022073708202 | AWC* | Steve Allen Moise | 6/24/2024 | Reg BI | |
| 2021070498102 | AWC* | Alan Mason | 5/22/2024 | Reg BI | |
| 2019064935602 | AWC* | Kayan Securities, Inc., Yong Soo Kim | 5/16/2024 | Reg BI | |
| 2021069350301 | AWC* | Murray Securities, Inc. | 4/8/2024 | Reg BI & Form CRS | |
| 2021069335701 | AWC* | Robert Spaulding Gleason Jr. | 4/5/2024 | Reg BI | |
| 2019062948102 | OHO Decisions | James Brett Stuart | 3/15/2024 | Reg BI | |
| 2022074025801 | AWC* | Joseph C. Desapio | 3/8/2024 | Reg BI | |
| 2018056490309 | AWC* | Tory A. Duggins | 1/19/2024 | Reg BI | |
| 2017052494701 | AWC* | LPL Financial LLC | 12/27/2023 | Reg BI | |
| 2021069362101 | AWC* | RCM Securities | 12/15/2023 | Form CRS | |
| 2022077257801 | AWC* | Malay Kumar | 11/30/2023 | Reg BI | |
| 2019060753505 | AWC* | Troy Allen Orlando | 11/22/2023 | Reg BI | |
| 2018056490307 | AWC* | Joao A. Pinto | 11/21/2023 | Reg BI | |
| 2021072389001 | Orders Accepting Offers of Settlement | Christopher Booth Kennedy | 11/17/2023 | Reg BI | |
| 2019061852801 | AWC* | Haywood Securities (USA) Inc. | 11/13/2023 | Reg BI | |
| 2022073332301 | AWC* | Parsonex Capital Markets, LLC | 11/08/2023 | Form CRS | |
| 2019062948102 | Complaints | James Brett Stuart | 10/27/2023 | Reg BI | |
| 2021072389001 | Complaints | Stewart Ginn | 10/17/2023 | Reg BI | |
| 2022076459305 | AWC* | Nicholas Michael Caruso | 10/12/2023 | Reg BI | |
| 2021072389001 | Complaints | Christopher Booth Kennedy | 9/22/2023 | Reg BI | |
| 2023079691201 | AWC* | Elba M. Nogueras | 9/18/2023 | Reg BI | |
| 2021070851501 | AWC* | Network 1 Financial Securities, Inc. Michael Molinaro | 8/31/2023 | Reg BI | |
| 2022076459303 | AWC* | Monmouth Capital Management LLC | 7/6/2023 | Reg BI & Form CRS | News Release |
| 2021069376801 | AWC* | American Wealth Management, Inc. | 5/19/2023 | Form CRS | |
| 2022076103701 | AWC* | Axos Invest LLC | 05/19/2023 | Form CRS | |
| 2021069357901 | AWC* | Highlander Capital Group, Inc. | 5/19/2023 | Form CRS | |
| 2021069277101 | AWC* | Harpeth Securities, LLC | 5/19/2023 | Reg BI & Form CRS | |
| 2021069380201 | AWC* | DMK Advisor Group, Inc. | 5/19/2023 | Reg BI & Form CRS | |
| 2020065599101 | AWC * | SW Financial | 5/12/2023 | Reg BI | News Release |
| 2021071134401 | AWC * | Jose M. Candelario Padilla | 3/10/2023 | Reg BI | |
| 2021069365001 | AWC * | Long Island Financial Group, Inc. | 2/10/2023 | Reg BI & Form CRS | |
| 2020065683301 | AWC * | Todd Anthony Cirella | 1/31/2023 | Reg BI | |
| 2020065683302 | AWC * | Edward Scott Short | 1/31/2023 | Reg BI | |
| 2021069405501 | AWC * | Charles V. Malico | 10/11/2022 | Reg BI | |
| 2021072107601 | AWC* | Aaron Capital Incorporated | 5/25/2022 | Form CRS |
SEC Matters
The chart below highlights SEC Enforcement actions against broker-dealers and associated persons that include a Reg BI or Form CRS violation. It is not intended to be a comprehensive listing of individual matters and subsequent history. For additional information regarding SEC enforcement, please visit https://www.sec.gov/page/litigation.
| Document | Summary | Date | Violation(s) |
|---|---|---|---|
| The Securities and Exchange Commission today announced settled charges against Texas-based broker-dealer Lion Street Financial, LLC (“Lion Street”) for violating Regulation Best Interest. | 11/15/2024 | Reg BI | |
| JP Morgan Affiliates to Pay $151 Million to Resolve SEC Enforcement Actions | 10/31/2024 | Reg BI | |
| SEC Charges Registered Representative with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts | 10/16/2024 | Reg BI | |
| SEC Charges Broker-Dealer with Violations of Regulation Best Interest for Excessive Trading in Customer Accounts | 10/16/2024 | Reg BI | |
| Administrative Proceedings File Number: 3-22226 | In the Matter of Thrivent Investment Management, Inc. | 10/2/2024 | Reg BI |
| Administrative Proceedings File Number: 3-22217 | In the Matter of Moloney Securities Co., Inc.; Donald R. Hancock; David F. La Grange; and Laura B. Barnes | 9/27/2024 | Reg BI |
| SEC Charges Broker with Violating Regulation Best Interest | 9/27/2024 | Reg BI | |
| Administrative Proceedings File Numbers: 3-22198; 3-22199; 3-22200; 3-22201; 3-22202 | SEC Charges Five Broker-Dealers for Failure to Meet Form CRS Obligations | 9/25/2024 | Form CRS |
| In the Matter of First Horizon Advisors, Inc. | 9/18/2024 | Reg BI | |
| Administrative Proceedings File Number: 3-22117 | In the Matter of State Farm VP Management Corp. | 9/16/2024 | Reg BI & Form CRS |
| SEC Announces Settlement of Regulation Best Interest Matter with Western International Securities, Inc. and Five Individual Brokers | 7/31/2024 | Reg BI | |
| Release No. 34-100618 | In the Matter of Western International Securities, Inc. | 7/30/2024 | Reg BI |
| Administrative Proceedings File No. 3-21983; 3-21984 | SEC Charges Broker-Dealer and Investment Adviser and Registered Representative with Violating Regulation Best Interest | 7/29/2024 | Reg BI |
| Administrative Proceedings File No. 3-21945 | SEC Charges Ohio Broker-Dealer and Investment Adviser with Violations of Regulation BI and the Investment Advisers Act for Failure to Address Conflicts of Interest | 5/21/2024 | Reg BI |
| SEC press release 2024-22 | SEC Charges TIAA Subsidiary for Failing to Act in the Best Interest of Retail Customers | 2/16/2024 | Reg BI |
| Administrative Proceedings File No. 3-21800 | SEC Charges Broker-Dealer and Two Registered Representatives with Violations of Regulation Best Interest for Excessive Trading in Customer Accounts | 11/20/2023 | Reg BI |
| Release No. 34-98609 | In the Matter of Citigroup Global Markets, Inc. and Citi International Financial Services, LLC, now known as Insigneo Financial Services, LLC, Respondents. | 9/28/2023 | Reg BI & Form CRS |
| In the Matter of Salomon Whitney, LLC, Respondent. | 9/28/2023 | Reg BI | |
| Litigation Release No. 25863 | SEC Charges Five Registered Representatives with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts | 9/28/2023 | Reg BI |
| Release No. 34-98478 | In the Matter of Carl M. Hennig, Inc., Respondent. | 9/22/2023 | Reg BI |
| SEC press release 2023-127 | SEC Charges Former Army Financial Counselor Who Defrauded Gold Star Family Members | 7/7/2023 | Reg BI |
| SEC Charges Firm and Five Brokers with Violations of Reg BI | 6/16/2022 | Reg BI | |
| SEC press release 2022-27 | SEC Charges 12 Additional Financial Firms for Failure to Meet Form CRS Obligations | 2/15/2022 | Form CRS |
| SEC press release 2021-139 | SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures | 7/26/2021 | Form CRS |
- 2023 Report on FINRAs Examination and Risk Monitoring ProgramThe Best Execution, Outside Business Activities and Private Securities Transactions, Private Placements, and Reg BI and Form CRS sections of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.January 10, 2023
- Media CenterWe are marking the second anniversary of the implementation of Regulation Best Interest and Form CRS with a deep dive into everything FINRA has learned on the topic over the last two years. On this episode, we hear how FINRA is examining around the new regulations and explore some of the common problem areas and effective practices.June 28, 2022
- 2022 Report on FINRAs Examination and Risk Monitoring ProgramThe Reg BI and Form CRS section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.February 09, 2022
- PodcastAs of June 30, 2020, the U.S. Securities and Exchange Commission’s Regulation Best Interest—or Reg BI—is officially in effect. What does a post implementation-date world look like? And how is FINRA working to ensure a consistent approach to examining around and enforcing the new regulation? Tune in to learn more.July 07, 2020
- Virtual Conference PanelAttend this session to hear from OCIE, FINRA staff and industry experts as they discuss how they intend to examine and inspect for compliance with Reg BI, including a discussion of implementation challenges, frequently asked questions, and issues that are being considered.May 12, 2020
- Virtual Conference PanelJoin panelists as they discuss Regulation Best Interest and Form CRS, its impact on the industry and effective practices to help broker-dealers manage their obligations.May 06, 2020
- Blog Post
FINRA hosted a Regulation Best Interest (Reg BI) conference on Dec.18, 2019 in Washington, D.C. for firms to discuss best practices and approaches. Approximately 500 compliance officers and other industry participants attended the one-day event focused on assisting firms as they gear up for the June 30, 2020 compliance date for the SEC’s Reg BI and Form CRS.
January 08, 2020 - PodcastSoon brokerage firms will have to comply with a new standard of conduct when working with retail clients with the implementation of Regulation Best Interest. What is the new standard? What will firms need to do to comply? Tune in to learn more from FINRA’s Chief Legal Officer.October 15, 2019
- Investor EducationSEC Regulation Best Interest sets forth the standard of conduct broker-dealers must provide to their retail customers when they make recommendations of securities or investment strategies involving securities. Form CRS is a relationship summary disclosure that broker-dealers and SEC-registered investment advisers must provide retail investors.