Reg BI Has Kicked In. Here’s What FINRA Expects
July 15, 2020 by Melanie Waddell
The Financial Industry Regulatory Authority is taking a “good-faith” effort approach in examining broker-dealers for compliance with Regulation Best Interest, but “open issues” remain that need further guidance from the Securities and Exchange Commission in light of Reg BI’s principles-based make-up.
“We’re not expecting perfection, but FINRA will be looking for good-faith efforts” to comply with Reg BI and the customer relationship summary, or Form CRS, said Meredith Cordisco of FINRA’s Office of General Counsel, during a recent FINRA Unscripted podcast.