Live Blogging: Reg BI – “best interest”

Larry emphasizes that the SEC opted not to define “best interest,” but instead sprinkled guidance on the contours of “best interest” throughout Reg. BI. The concept of best interest will be principles-based, and not a bright-line test. There is not a per se prohibition against conflicts of interest. Crucially, however, the broker’s interests can’t be placed ahead of the retail investor’s interests.