trends The news that drives the retirement plan adviser industry Regulation Best Interest Arrives On June 30, the Securities and Exchange Commission's 'Reg BI' goes into effect to enhance the transparency and quality of adviser/investor relationships. AS THE NAME SUGGESTS, the Securities and Exchange Commission (SEC)'s Regulation Best Interest (Reg BI) establishes a " best interest " standard of conduct. This will be used by registered investment advisers (RIAs), broker/dealers (B/Ds), and associated personnel when they make a recommendation to a retail customer-i.e., an individual person-of any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Tied into the broad rulemaking package is a related clarification and restatement of the SEC's understanding of the fiduciary duty applying to investment advisers under the Investment Advisers Act of 1940. Both aspects of Reg BI take full regulatory effect as of that end of June date. Matt Radgowski, head of adviser solutions for Morningstar, says he is often called on to discuss the ways in which Reg BI goes further than the current suitability standard enforced by the Financial Industry Regulatory Authority (FINRA). He says most advisers recognize that Reg BI imposes significant new care obligations " above suitability " that include evaluating costs as well as reasonable alternative investments for investors-and that 8 | planadviser.com May-June 2020 Art by Julie Benbassathttp://www.planadviser.com