SEC Regulation Best Interest, often shortened to SEC Reg BI, is the Securities and Exchange Commission rule that imposes a best-interest standard of conduct on broker-dealers when recommending securities transactions or investment strategies to retail customers. It requires firms to act in the customer's best interest and not place their own interests ahead of the client's, addressing four key obligations: disclosure, care, conflict of interest, and compliance. SEC Regulation Best Interest applies to recommendations involving variable annuities, RILAs, mutual funds, and other securities products commonly used in retirement and wealth planning.

In daily practice, firms adjust policies, training, and supervisory systems to comply with SEC Regulation Best Interest. Advisors must gather detailed client information, consider reasonably available alternatives, and document why each recommendation is in the client's best interest. Broker-dealers update Form CRS, disclosure documents, and product comparison tools, and they often designate complex products like variable annuities and IRAs for heightened review. Advisors reference SEC Regulation Best Interest when explaining to clients why they ask extensive questions and provide lengthy disclosures. Understanding SEC Reg BI helps advisors integrate securities and insurance recommendations within a robust best-interest framework.