Business & Corporate
SEC Regulation Best Interest: A Practical Guide for Broker-Dealers and Investment Advisers
Barry R. Temkin, Cynthia L. King, Mitchell Markarian
On June 30, 2020, registered securities broker-dealers must begin their compliance with the new SEC Regulation Best Interest and Form CRS Relationship Summary/Form ADV Part 3,† which were announced by the Securities and Exchange Commission on June 5, 2019.[1] These new regulations were promulgated under authority given to the SEC by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Regulation Best Interest has four components: (1) the disclosure obligation; (2) the care obligation; (3) the conflicts-of-interest obligation; and (4) the compliance obligation.