T463 · WealthTech · Cat-27

Reg BI Best-Interest Checker

Assess a securities recommendation against SEC Regulation Best Interest's four component obligations. Returns a per-obligation PASS/GAP determination, overall best-interest verdict, and ordered remediation list. Applies to every US broker-dealer recommendation to a retail customer. A 2026 FINRA enforcement priority.¹

T463 · v1.0 SEC Reg BI · 17 CFR 240.15l-1 US Broker-Dealer Scope 2026 FINRA Enforcement Priority Client-side · Zero PII

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Recommendation Details

Recommendation Type

Retail Customer (Reg BI applies only to retail recommendations)

Reasonably Available Alternatives Considered (count)

Total Cost to Customer (basis points)

A lower-cost alternative exists in the considered set

Investor Profile (for Care Obligation context)

Risk Tolerance

Investment Time Horizon (years)

Liquidity Needs

Disclosure Obligation Inputs

Form CRS delivered to retail customer before or at the time of recommendation

Material conflicts of interest disclosed in writing

Care Obligation Inputs

Recommendation rationale documented (basis for best interest)

Care Obligation requires: reasonable basis belief the recommendation is in the customer's best interest; consideration of reasonably available alternatives; and cost-consciousness across a series of transactions.²

Conflict of Interest Obligation

Conflicts of interest mitigated or eliminated (written policies in place)

BD must establish, maintain, and enforce policies and procedures to identify, disclose, and mitigate: or eliminate: conflicts of interest.³

Compliance Obligation

Written compliance program in place reasonably designed to achieve Reg BI compliance

BD must have a compliance program: policies and procedures: reasonably designed to achieve compliance with all four Reg BI obligations.⁴

Regulatory citations:
1. SEC Release No. 34-86031 (June 5, 2019); effective July 12, 2020: SEC Regulation Best Interest. FINRA 2026 Exam Priorities Letter (January 2026).
2. Reg BI Exchange Act Rule 15l-1(a)(2)(ii): Care Obligation, including series-of-transactions and cost-conscious requirement.
3. Reg BI Exchange Act Rule 15l-1(a)(2)(iii): Conflict of Interest Obligation.
4. Reg BI Exchange Act Rule 15l-1(a)(2)(iv): Compliance Obligation.