What is Reg BI?

Recently, you may have heard that financial industry regulators established a new set of rules designed to guide investors who work with an investment professional.

This new set of rules is called “Regulation Best Interest” rule, otherwise known as “Reg BI.”

This rule establishes a series of guidelines about how to meet investors’ best interests. It provides steps for financial professionals to follow to give investors a higher level of comfort when making decisions. It also outlines strategies that take investors’ overall financial situation into account when proposing solutions.

For many investors, such procedures were already in place, and the new rules may not affect our day-to-day practices in ways that you may immediately notice. A conversation with your trusted financial professional about “Reg BI” and how it might affect your investment strategy might be in order; they can answer any questions you may have about this regulation.

Specific to us here at Redwood, reach out with any questions and take a look at our Customer Relationship Summary.