Reg BI: What It Is, Who It Affects, and How It Shapes Financial Advice

When you get investment advice from a broker or financial advisor, Reg BI, Regulation Best Interest, a rule enforced by the U.S. Securities and Exchange Commission (SEC) that requires financial professionals to act in their clients’ best interest when making recommendations. Also known as Broker-Dealer Standard, it doesn’t force them to be fiduciaries—but it does demand they put your needs ahead of their own commissions or incentives. Before Reg BI, many advisors could legally push products that paid them more, even if those weren’t the best fit for you. Reg BI changed that. It doesn’t guarantee the best outcome, but it forces them to explain why they picked what they did—and to avoid conflicts of interest when they can.

Reg BI applies to financial advisors, professionals who recommend securities like stocks, bonds, or crypto to retail investors, especially those working for broker-dealers. It doesn’t cover all advisors—registered investment advisors (RIAs) still follow the stricter fiduciary standard—but it covers millions of people who get advice from firms like Charles Schwab, Fidelity, or Robinhood. The rule also ties directly to SEC rules, the regulatory framework that governs how markets and financial professionals operate in the U.S.. If a broker recommends a high-fee mutual fund over a low-cost ETF, they now need to document why that choice benefits you—not just their bottom line.

Reg BI doesn’t stop at product selection. It requires four key obligations: disclosure, care, conflict of interest mitigation, and compliance. That means advisors must clearly explain fees, avoid steering you toward products that pay them extra, and set up internal policies to catch bad behavior. It’s not perfect—critics say it’s too weak compared to fiduciary duty—but it’s the strongest protection most retail investors have under current law. And in markets where crypto tokens, meme stocks, and complex derivatives are pushed as "opportunities," Reg BI is the only rule that forces advisors to ask: "Is this really right for you?"

Below, you’ll find posts that dig into how financial rules like Reg BI shape the advice you get—whether it’s about crypto, stocks, or confusing new financial products. Some show how regulators are catching up. Others reveal how loopholes still let bad practices slip through. You won’t find fluff here. Just real examples of how rules like Reg BI affect what you see, what you’re sold, and what you actually end up owning.