What is Reg BI?
Regulation Best Interest – or Reg BI – is a landmark regulation set to go into effect on June 30, 2020. This new regulation addresses broker-dealer business, specifically, and will officially replace the industry’s long-standing, transactional “suitability” criterion with a “best interest” standard.
How does Reg BI impact my business?
Reg BI introduces a best interest standard that impacts process, forms and communication with clients.
How does Reg BI impact my clients?
Reg BI requires additional disclosure, provided through the new Customer Relationship Summary (Form CRS). In mid-June, ESI will conduct a mailing to all existing customers – both brokerage and direct – to ensure that they receive a copy of our Form CRS prior to the regulation’s effective date of June 30. This means that each of our existing customers will have received a copy of the CRS prior to the implementation date and, therefore, you can continue to provide recommendations on their existing accounts without having to ensure delivery, yourself. Of course, this only applies to individuals who were customers of the Firm prior to June 30th. After June 30th, recommendations are subject to delivery criteria as explained in our training materials.
The disclosure being sent to your clients will be shared with you within the week.
What are my training resources?
ESI has multiple training opportunities.
- Recorded Training Modules – ESI has been rolling out training webinars that provide information in short, easy-to-digest recordings. There will ultimately be 5 training webinars (3 are currently live), and an additional Field Notice on the impact of Reg BI on incentives. To view any of these webinars, log in to the National Life website, and click on the Reg BI link on the left (see screenshots below or click here).
- FIRE Solutions Training – At the end of June we’ll roll out a Reg BI course in FIRE Solutions, the platform that you use for your Firm Element courses. The FIRE Solutions course comprises all the training in one course and will become a part of mandatory training.
- FAQ and Forms Overview – As we continue the development of our training materials, we’re compiling an FAQ designed to address top of mind questions that aren’t covered in training. We’ll also provide some quick reference materials. Such as a Forms Overview to help ensure you are ready to do business on June 30th.
TC114937(0620)1