On August 7, 2019, FINRA issued Regulatory Notice 19-26, which reminded member firms that Regulation Best Interest (Regulation BI) and the related Form CRS relationship summary were each adopted by the SEC on June 5, 2019, and also provided a number of helpful tools for those firms.1 The Notice provides links to the adopting releases for Regulation BI and Form CRS, the Form CRS instructions, and two SEC interpretations on a registered investment adviser's standard of conduct under the Investment Advisers Act of 1940 ("Advisers Act") and the "solely incidental" prong of the exclusion for broker-dealers from the Advisers Act. The Notice also provides a SEC web address for questions by member firms about the new rules and releases.
FINRA has also established a webpage for Regulation BI with links to the various adopting releases and interpretations and a list of FINRA staff contacts.2 The Notice seems to signal that FINRA will be working with its member firms to provide guidance or at least make resources available relating to Regulation BI.
Additional information, including the full notices, is available here: https://bit.ly/2LQ4RnI .
1 FINRA Regulatory Notice 19-26 is available at: https://bit.ly/2KUvvdu.
2 The Regulation BI webpage is available at: https://bit.ly/2NzoYa6.
Originally published in REVERSEinquiries: Volume 2, Issue
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