regulation

Glossary terms related to regulation.

• RIA vs. Broker-Dealer: Key Differences

  Registered investment advisers (RIAs) and broker-dealers are both regulated financial intermediaries, but they operate under different regulatory frameworks, compensation structures, and standards of care.

• Reg BI (Regulation Best Interest)

  Regulation Best Interest (Reg BI) is an SEC rule requiring broker-dealers to act in the best interest of retail customers when making investment recommendations. Effective June 30, 2020.

• Form ADV

  Form ADV is the SEC's registration form for investment advisers. Part 1 contains business and disciplinary information; Part 2 (the brochure) must be delivered to clients and describes the adviser's services, fees, and conflicts of interest.

• Fiduciary Standard

  The fiduciary standard requires investment advisers to act in the best interest of their clients, putting client interests ahead of their own. It is the highest standard of care in financial services.

• Books and Records (Investment Adviser)

  The books and records rules require registered investment advisers and broker-dealers to maintain specific records for defined retention periods. SEC Rule 204-2 governs RIAs; Rule 17a-4 governs broker-dealers.