Reg Bi Best Interest

# Series 7 — SEC Regulation Best Interest (Reg BI) Exam: FINRA Series 7 (General Securities Representative) Last Updated: June 2026 > Exam weight context (sourced from FINRA 2025 Series 7 outline): Reg BI is tested across Function 2 (Evaluate Accounts and Customer Information, 9% / 11 questions) and Function 3 (Provide Clients with Recommendations, 73% / 91 questions). Key rules cited directly in the 2025 outline: Exchange Act Rule 15l-1 (Regulation Best Interest); Exchange Act Rule 17a-14 (Form CRS); FINRA Rule 2111 (Suitability); FINRA Rule 3110 (Supervision); FINRA Rule 3120 (Supervisory Control System). Reg BI is one of the highest-frequency regulatory topics on the Series 7. --- ## Overview Regulation Best Interest (Reg BI) was adopted by the SEC in June 2019 and became effective on June 30, 2020. It establishes a "best interest" standard of conduct for broker-dealers and their registered representatives when making recommendations to retail customers. Reg BI raises the bar above the prior suitability standard while stopping short of imposing a full fiduciary duty. It is one of the most significant regulatory changes to broker-dealer conduct standards in decades and is heavily tested on the Series 7. --- ## Prior Standard vs. Reg BI | Standard | Who It Applies To | Key Obligation | |---|---|---| | Suitability (pre-Reg BI) | Broker-dealers | Recommendation must be "suitable" for the customer based on their profile | | Reg BI / Best Interest (current) | Broker-dealers | Recommendation must be in the customer's best interest at the time made | | Fiduciary duty | Investment advisers (RIAs) under Investment…