Finra To Test Members’ Readiness For Reg BI
November 6, 2019 by Tracey Longo
The Financial Industry Regulatory Authority plans to begin Regulation Best Interest “preparedness reviews” of broker-dealers starting in November.
That’s according to William St. Louis, Finra’s northeast regional director for sales practice, who said the agency will stress-test firms’ Reg BI readiness starting next month.
“Obviously, we want to see where firms stand,” he told broker-dealer executives at the Sifma New York regional compliance and legal seminar earlier this week.
The regulation requires registered reps and their firms to ensure they comply with the new best interest standard when recommending any securities transaction or investment strategy to a retail customer.
St. Louis said Finra is beginning its stress-testing of broker-dealers’ preparedness seven months before the rule’s June 30, 2020, compliance deadline in order to give firms as much assistance as possible in implementing the more than 1,000 pages of regulations.