Regulation Best Interest (Reg BI)

What this video covers

• Which customers trigger Reg BI versus FINRA suitability, and why a pension fund gets suitability while Carla the retail investor gets the higher standard
• The definition of a retail customer: a natural person acting for personal, family, or household purposes
• The four component obligations of Reg BI: Disclosure, Care, Conflict of Interest, and Compliance
• Which three of the four obligations require written documentation, and why Care does not
• How the Care Obligation subsumes FINRA suitability plus adds cost comparison and the prohibition against putting the firm's interest ahead of the customer's
• Why Reg BI does not replace the FINRA suitability rule, and how both standards operate side by side depending on customer type
• Which conflicts can be mitigated through disclosure and supervision versus which must be eliminated outright, including the security-specific sales contest trap
• Why disclosure is non-waivable, operates recommendation by recommendation, and cannot be satisfied by a prospectus or verbal summary alone