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Regulation Best Interest: The Next Big Thing for Broker-Dealer Cross-Border Private Wealth

December 31, 2018 Jones Day Publications

In April 2018, the U.S. Securities and Exchange Commission ("SEC") released Regulation Best Interest, or Reg BI, a proposed rule that will require broker-dealers to operate in the best interest of their customers. Under Reg BI, broker-dealers must disclose key details of the client-broker relationship; exercise diligence and care when making recommendations to clients; and enforce policies to disclose and mitigate, or eliminate, potential conflicts. However, the proposed regulation, which is back before the SEC for consideration after passing its August 2018 comment period, may create more disruption than it resolves.

This White Paper examines Reg BI and the new and significant challenges it will present to the cross-border private wealth industry.

This White Paper is an expanded version of an article that appeared in the November 2018 edition of Citywire Americas magazine.

Insights by Jones Day should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request permission to reprint or reuse any of our Insights, please use our “Contact Us” form, which can be found on our website at www.jonesday.com. This Insight is not intended to create, and neither publication nor receipt of it constitutes, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.
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