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ubcnewsworld
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What is the Best Interest, Anyway? THE DEVIL'S IN THE DETAILS. Many of the terms used in Reg- BI, like "Best Interest" are not explicitly defined within the 1300 pages. Best interest and meeting compliance with Reg-BI will be defined by court cases from violations and lawsuits and will constantly evolve. Reg-BI intends to address and update an entire industry. DOL'S FIDUCIARY RULE STANDARD Reg-BI is the replacement for the Department of Labor's Fiduciary Rule, nixed in 2017. There are many similarities between the regulations and the DOL certainly inspired parts of Reg-BI. By the DOL's language a fiduciary's obligation to carry out its duties is done so "Prudently" when they follow a "Procedurally prudent" process by: gathering relevant information, considering all available courses of action, consulting experts where appropriate, and making a reasoned decision based The Fiduciary Rule is by many standards a more strict regulation, so meeting these fiduciary obligations will certainly place most BDs and RIAs within their Reg-BI due diligence standards. REG-BI EXPANDS ON FINRA'S SUITABILITY STANDARD Brokers must currently adhere to FINRA's suitability standard of care with clients, and RIAs must uphold a fiduciary standard of care. As the table below shows, Reg-BI is not that different from FINRA's rule. BEST INTEREST ACCORDING TO A FINANCIAL LAWYER We consulted with a financial attorney, Michael Kreps , who has advised on regulation, to give his analysis of Reg-BI and its terminology. With a whole new set of obligations to follow, Reg-BI, for BDs and RIAs, clients will be made aware of this change in accepted standards. Contact Us At: https://lifestylecrm.net/