Rule 15l-1 (Regulation BI- Best Interest)

Regulation BI established a standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. Four obligations must be met to satisfy the best interest obligation: (1) requires the broker-dealer or associated person, prior to or at the time of such recommendation, to provide the retail customer, in writing, full and fair disclosure of all material facts relating to the scope and terms of the relationship with the retail customer and all material facts relating to conflicts of interest associated with the recommendation (Disclosure Obligation); (2) requires the broker-dealer or associated person, in making the recommendation, to exercise reasonable diligence, care and skill (Care Obligation); (3) require the broker-dealer to establish, maintain, and enforce written policies and procedures addressing conflicts of interest associated with its recommendations to retail customers (Conflict of Interest Obligations); and (4) require the broker-dealer to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Regulation Best Interest as a whole (Compliance Obligation).

The latest form for Rule 15l-1 (Regulation BI- Best Interest) expires 2029-07-31 and is listed under ICR 202603-3235-001.

IC1 - Dually-registered BDs (Disclosure of Capacity)

Federal Enterprise Architecture: Economic Development - Financial Sector Oversight