ARTICLE
18 March 2025

Keeping Up With The Regulators: How To Build An Effective Compliance Programme To Satisfy The Best Interest Care Obligation

W
WilmerHale

Contributor

WilmerHale provides legal representation across a comprehensive range of practice areas critical to the success of its clients. With a staunch commitment to public service, the firm is a leader in pro bono representation. WilmerHale is 1,000 lawyers strong with 12 offices in the United States, Europe and Asia.
Reg BI is codified in Rule 15l-1 under the Securities Exchange Act of 1934 Reg BI contains a ‘general obligation' that is satisfied if and only if a broker-dealer complies with four component obligations:
United States Corporate/Commercial Law

In an article published in the Journal of Financial Compliance, Partner Stephanie Nicolasand Associate Joshua Nathansondiscusses the differences between Reg BI and the Advisers Act fiduciary standard, general considerations regarding the scope and application of Reg BI and recent guidance and enforcement actions related to the care obligation, among other topics

Excerpt: "Reg BI is codified in Rule 15l-1 under the Securities Exchange Act of 1934 Reg BI contains a 'general obligation' that is satisfied if and only if a broker-dealer complies with four component obligations: the care obligation, the disclosure obligation, the conflict of interest obligation, and the compliance obligation. Crucially, Reg BI applies only if certain triggers are satisfied. Specifically, there must be a 'recommendation' to a 'retail customer.' An effective compliance programme will be attentive to Reg BI triggers so that natural person APs comply with Reg BI whenever Reg BI is operative."

Originally published January 28, 2025

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More