A recent Financial Planning article discussed FINRA’s 2022 Examination and Risk Monitoring Program report about the first year of Reg BI standards. Not surprisingly, the report was littered with typical Broker Dealer compliance issues, like inadequate staff training, poorly written supervisory procedures, and conflict of interest red flags.

Reg BI, or Regulation Best Interest, compels Broker Dealers and their financial advisors to act in a client’s best interests by educating and informing them about investment decisions. In the same way as Reg BI for Broker Dealers, the fiduciary standard guides RIAs and advisors to act in a client’s best interests. Overcoming Reg BI challenges means that you must show that you care for clients by engaging with clients in specific ways.

How? By following several Reg BI principles, including:

  • Prove/document that you have the client’s best interests first, always
  • Understand the risks, rewards, and costs of your recommendations
  • Show that recommendations are in a client’s best interests based on their investment profile
  • Implement a system to mitigate conflicts of interest that may arise
  • Show that the cheapest option isn’t necessarily in the client’s best interests

A common theme we hear at LOGICLY is that firms and their advisors are struggling to comply with Reg BI requirements around cost and reasonable product alternatives. If they were using our LOGICLY platform that wouldn’t be an issue.

We were ahead of the Reg BI and fiduciary standard curve, as we’ve been providing this functionality for years. It gives you and your clients clarity in understanding what’s in their portfolio, why it’s there, and what it costs. At LOGICLY, we believe transparency matters, understanding cost is imperative, and how the pieces of portfolio are assembled are exceptionally important. Some might call this risk management. We call it common sense.

In this video, Andrew Unthank showcases how LOGICLY gives you several ways to answer the cost and reasonableness components of Reg BI. Watch as Andrew illustrates how you can find similarity data points between funds and ETFs. And show your clients that sometimes, the cheapest option isn’t the best or most suitable option.

Overcoming Reg BI challenges with LOGICLY to see similar funds and ETFs to compare costs and reasonableness.

Other videos you might find interesting:

How to Screen for MidCap ETFs and Funds

Overview of Our Lightning-Fast Fund Screener Tools

Visit LOGICLY to get access to the most robust analytics and portfolio construction toolset available to financial advisors. Join the revolution! You’ll thank us and your clients will thank you!

That’s how we empower and inspire confident outcomes. And how you can too.

You can subscribe to our YouTube channel to see other useful videos: LOGICLY on YouTube.



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