US SEC Regulation Best Interest (17 CFR 240.15l-1)
The SEC's best interest standard for broker-dealer recommendations to retail customers: the general obligation and its four components (written disclosure of capacity, costs, services and conflicts; reasonable-basis, customer-specific and quantitative care; conflict identification, disclosure, mitigation and the ban on product-specific sales contests; a compliance program), plus the six-year retail customer record under Rules 17a-3 and 17a-4.
US SEC Regulation Best Interest (17 CFR 240.15l-1) is a compliance framework from United States with 6 domains and 16 controls. The largest domains are Disclosure obligation (paragraph (a)(2)(i)) – US SEC Regulation Best Interest (17 CFR 240.15l-1) (5 controls), Conflict of interest obligation (paragraph (a)(2)(iii)) – US SEC Regulation Best Interest (17 CFR 240.15l-1) (4 controls), Care obligation (paragraph (a)(2)(ii)) – US SEC Regulation Best Interest (17 CFR 240.15l-1) (3 controls). Every control below carries what it requires and what an assessor expects to see.
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Framework Domains (6)
Care obligation (paragraph (a)(2)(ii)) – US SEC Regulation Best Interest (17 CFR 240.15l-1)
| Code | Title |
|---|---|
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2ii-A | Understand the recommendation and have a reasonable basis that it could suit some retail customers |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2ii-B | Have a reasonable basis that the recommendation suits this customer's investment profile |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2ii-C | Ensure a series of recommended transactions is not excessive when taken together |
Compliance obligation (paragraph (a)(2)(iv)) – US SEC Regulation Best Interest (17 CFR 240.15l-1)
| Code | Title |
|---|---|
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2iv | Written policies and procedures reasonably designed to achieve compliance with Regulation Best Interest |
Conflict of interest obligation (paragraph (a)(2)(iii)) – US SEC Regulation Best Interest (17 CFR 240.15l-1)
| Code | Title |
|---|---|
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2iii-A | Policies and procedures to identify and at least disclose or eliminate all conflicts |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2iii-B | Identify and mitigate conflicts that give individuals an incentive to put the firm first |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2iii-C | Identify, disclose and prevent the effects of material limitations on the menu of recommendations |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2iii-D | Eliminate sales contests, quotas, bonuses and non-cash compensation tied to specific securities in a limited period |
Disclosure obligation (paragraph (a)(2)(i)) – US SEC Regulation Best Interest (17 CFR 240.15l-1)
| Code | Title |
|---|---|
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2i-A1 | Disclose the capacity in which the recommendation is made |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2i-A2 | Disclose the material fees and costs of transactions, holdings and accounts |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2i-A3 | Disclose the type and scope of services and any material limitations |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2i-B | Disclose all material facts about conflicts of interest tied to the recommendation |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a2i-timing | Give full and fair written disclosure before or at the time of the recommendation |
Records under Exchange Act Rules 17a-3 and 17a-4 – US SEC Regulation Best Interest (17 CFR 240.15l-1)
| Code | Title |
|---|---|
| us-sec-regulation-best-interest-17-cfr-240-15l-1::17a3-a35 | Make a record of the information collected from and given to each retail customer and the responsible associated person |
| us-sec-regulation-best-interest-17-cfr-240-15l-1::17a4-e5 | Preserve the Regulation Best Interest records for six years |
The general best interest obligation (paragraph (a)(1)) – US SEC Regulation Best Interest (17 CFR 240.15l-1)
| Code | Title |
|---|---|
| us-sec-regulation-best-interest-17-cfr-240-15l-1::a1 | Act in the retail customer's best interest at the time of each recommendation |
What is US SEC Regulation Best Interest (17 CFR 240.15l-1) and who does it apply to?
US SEC Regulation Best Interest (17 CFR 240.15l-1) is a compliance framework from United States with 6 domains and 16 controls. The SEC's best interest standard for broker-dealer recommendations to retail customers: the general obligation and its four components (written disclosure of capacity, costs, services and conflicts; reasonable-basis, customer-specific and quantitative care; conflict identification, disclosure, mitigation and the ban on product-specific sales contests; a compliance program), plus the six-year retail customer record under Rules 17a-3 and 17a-4. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
What does US SEC Regulation Best Interest (17 CFR 240.15l-1) actually require?
US SEC Regulation Best Interest (17 CFR 240.15l-1) has 16 controls organised across 6 domains. The largest domains are Disclosure obligation (paragraph (a)(2)(i)) – US SEC Regulation Best Interest (17 CFR 240.15l-1) (5 controls), Conflict of interest obligation (paragraph (a)(2)(iii)) – US SEC Regulation Best Interest (17 CFR 240.15l-1) (4 controls), Care obligation (paragraph (a)(2)(ii)) – US SEC Regulation Best Interest (17 CFR 240.15l-1) (3 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
If I already comply with another framework, how much of US SEC Regulation Best Interest (17 CFR 240.15l-1) do I already cover?
US SEC Regulation Best Interest (17 CFR 240.15l-1) does not currently have cross-framework mappings in our system. Check back as we continuously expand our mapping database.
How do I implement US SEC Regulation Best Interest (17 CFR 240.15l-1)?
Start your US SEC Regulation Best Interest (17 CFR 240.15l-1) compliance journey by running a self-assessment on our platform to identify your current compliance posture. Our AI advisory can answer specific questions about US SEC Regulation Best Interest (17 CFR 240.15l-1) requirements, and cross-framework mapping helps you leverage existing controls from other frameworks you may already comply with. Create a free account to access all 16 controls and track your progress.
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