Yesterday, the newly re-named Division of Examination (formerly known as OCIE) at the SEC released a statement noting that they intend to expand the scope of Reg BI examinations in 2021 to go beyond "good faith efforts" to comply and focus on the specific requirements of the rule, including: alterations to the product shelf, consideration of costs in making a recommendation, rollovers, complex products and reasonably available alternatives, and processes to identify and address conflicts. This is line with our past expectations that beginning in 2021 the SEC exam program would look beyond good faith compliance with the rule.
Building on staff’s initial assessments, Division staff intends to expand the scope of examinations in 2021 that focus on specific requirements of the Regulation, including those that go beyond suitability standards and require broker-dealers to have a reasonable basis to believe that recommendations are in retail customers’ best interests. The Division also intends to conduct enhanced transaction testing designed to examine whether broker-dealers have implemented effectively their written policies and procedures.
https://www.sec.gov/news/public-statement/examinations-regulation-best-interest-2020-12-21
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