SERIES 6 EXAM NOW INCLUDES INFORMATION ON SEC REGULATION BEST INTEREST

Study for the Series 6 Exam by Bob Eder J.D. includes discussion of Regulation Best Interest, or Regulation BI, which now applies to dealing with retail customers. 

Regulation Best Interest now requires every registered representative to view his/her recommendations through the prism of whether such recommendation is in the retail customer's best interests. Regulation BI went into effect on June 30, 2020. Prior to this date, a representative was required merely to assure that his/her recommendations met the test of suitability. 

Furthermore, there was no requirement to present a retail customer with conflicts of interest in writing. Regulation BI now requires this disclosure.

Regulation BI applies to recommendations also on which type of accounts to recommend to retail customers, not just to securities recommendations. This means before a representative puts a retail customer into a mutual fund account, or into a margin account, or into a wrap fee account, the representative must have reasonable basis for believing that the type of account is in the best interests of the customer.

Regulation BI also prohibits a representative from putting his/her own financial interests ahead of the retail customer's interest.

For more discussion of Regulation BI, see Study for the Series 6 Exam.

Bob Eder's book is available from Amazon in both paperback and Kindle e-book versions. 

Here is the link to Bob Eder's book on Amazon.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.