Reference
Reg BI (Regulation Best Interest) Tracker glossary
Terms used in Reg BI (Regulation Best Interest) Tracker and its documentation.
Applies to Reg BI (Regulation Best Interest) Tracker as it works today. Moraph updates the platform continuously, and this page is reviewed when it changes.
Terms used in Reg BI (Regulation Best Interest) Tracker and its documentation.
| Term | Meaning |
|---|---|
| Regulation Best Interest | The SEC rule requiring broker-dealers to act in a retail customer's best interest when making a recommendation. |
| Care obligation | The requirement to use reasonable diligence, care and skill when making a recommendation, including considering costs and alternatives. |
| Form CRS | The client relationship summary your firm delivers to retail investors. |
| Investment profile | The client's objectives, risk tolerance, time horizon, liquidity needs and other information used to assess a recommendation. |
| Reasonably available alternatives | Other products on your shelf that could meet the client's needs, considered alongside the recommended one. |
| Point-of-sale rationale | The reasons a representative records, at the time of the recommendation, for why it is in the client's best interest. |
| Flag | A firm rule's signal that a recommendation needs supervisory review. |
| Rollover | Moving retirement assets from one account, such as an employer plan, to another. |
| Conflict of interest | An interest that might incline the firm or a representative to make a recommendation that is not disinterested. |
| Dual registrant | A firm registered as both a broker-dealer and an investment adviser. |
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