Cadwalader attorneys authored a memorandum on the implications of newly adopted Regulation Best Interest ("Reg. BI"), which is intended to expand and clarify the duties that broker-dealers owe to retail investors. Reg. BI was adopted as part of a package of actions concerning the obligations of broker-dealers and advisers to their clients that was approved by the SEC on a 3-1 vote, with Commissioner Robert J. Jackson Jr. dissenting, asserting that the actions were insufficiently protective. In addition to providing a summary of Reg. BI, and a preliminary policy discussion, the memorandum provides a first cut of the compliance and operational procedures that firms may wish to consider implementing in order to comply with the new requirements.