Regulation Best Interest

Regulation Best Interest (Reg BI) is a rule established by the U.S. Securities and Exchange Commission (SEC) aimed at ensuring financial advisors act in the best interests of their clients. It requires advisors to prioritize their clients' needs over their own when making recommendations regarding investment products. This means they must provide full disclosure about any conflicts of interest, ensure that the recommended products are suitable for the client’s situation, and strive to offer services with a higher standard of care, ultimately promoting transparency and trust in financial advice.