Regulation Best Interest
Also called: Reg BI, best interest standard
Regulation Best Interest requires US broker-dealers to act in a retail customer's best interest when recommending securities — a standard above suitability and below full fiduciary duty. Critics argue the gap is where commission-driven sales still live, since Reg BI permits conflicts that are disclosed and mitigated rather than eliminated. Investment advisers remain subject to the stricter fiduciary standard.