Below is an excerpt from finra.org, one of our regulating bodies:
- On June 5, 2019, the SEC adopted Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934. Reg BI establishes a “best interest” standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
- Form CRS, to retail investors. As part of the rulemaking package, the SEC also adopted new rules and forms to require broker-dealers and investment advisers to provide a brief relationship summary,
The intention of ‘Reg BI’ is to apply a ‘standard of conduct’ to brokers similar to that of a ‘fiduciary,’ which legislates that Investment Advisors put clients’ interests ahead of their own. Since we hold separate registrations as a Broker through Oak Tree Securities and as a Registered Investment Advisor, this rule may or may not apply to your accounts or financial relationship with us.
Please get back with any questions or clarifications on this new rule.