Regulation Best Interest, often called “Reg BI,” is a FINRA rule designed to ensure that recommendations made by financial professionals are in a retail investor’s best interest—not driven primarily by compensation or conflicts.
Under Reg BI, financial advisers are required to consider a client’s investment objectives, risk tolerance, and overall financial situation when making recommendations. They must also disclose conflicts of interest and maintain policies designed to support compliant advice.
In practice, Reg BI issues often arise when investors experience losses tied to unsuitable strategies, excessive concentration, or complex products that did not align with their goals. These disputes are commonly addressed through FINRA arbitration.
At Bakhtiari & Harrison, we help investors understand how Reg BI applies to their situation and whether a recommendation met the standards required under the rule. Knowing what Reg BI requires can provide important clarity for investors evaluating what went wrong and what options may be available. #RegBI #InvestorRights #SecuritiesLaw
