Regulation Best Interest went into effect on June 30, 2020. The initial adjustment period is over and the SEC will be enforcing stricter compliance.
The measure went into effect during the pandemic. SEC examinations were looking to ensure firms were putting forth “good faith efforts” to implement the new broker investment advice standard.
Now that firms have had times to adjust, examiners will have higher expectations and “be looking for concrete evidence that Reg BI is making a difference in a firm’s policies and procedures.
Our friends at Investment News discussed the anticipated tighter enforcement in a recent piece.