Regulation BI and Real-World Enforcement
When the Financial Industry Regulatory Authority (“FINRA”) initially proposed the Regulation Best Interest (“Reg BI”), many professionals within the financial services industry shrugged and treated it as another item that could be added to the daily pile of tasks, documentation, and industry noise. Three years into the practical application and enforcement actions, broker dealers are experiencing the consequences of resistance to change. Fines, restitution, bans, and overall corrective actions can be significant, especially in respect to the originating event circumstances. Broker dealer responsibilities require establishment, maintenance, and enforcement of a supervisory system reasonably designed to achieve compliance with Reg BI’s Read more about Regulation BI and Real-World Enforcement[…]