Recently, you may have heard that financial industry regulators established a new set of rules designed to guide investors who work with an investment professional. This new set of rules is called “Regulation Best Interest” rule, known colloquially as “Reg BI.”1
This rule establishes a series of guidelines about how to meet investors’ best interests. It provides steps for financial professionals to follow in an effort to give investors a higher level of comfort when making decisions. It also outlines strategies that take investors' overall financial situation into account when proposing solutions.
For many investors, such procedures were already in place, and the new rules may not affect our day-to-day practices in ways that you may immediately notice. That said, I would be happy to talk to you about how “Reg BI” might affect your investment strategy and answer any questions you may have about this regulation.
1. finra.org, July 14, 2020
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What is Reg BI?
July 21, 2020