Personal Finance & Estate › Fraud, scams & protecting family › Choosing a fiduciary advisor (fee-only, CFP, CPA, attorney)
Fiduciary duty vs. suitability (Reg BI)
Reg BI 2019· Legal document or tool
Law or rule (2026)Set by statute, regulation or the agency; numbers change yearly.
The legal standards for advice: fiduciaries must put clients first throughout, while brokers must act in the client's best interest when recommending.
See it on the Personal Finance & Estate map →How it works
Registered investment advisers owe ongoing duties of loyalty and care under the 1940 Advisers Act. Brokers once had only to recommend something 'suitable.' Regulation Best Interest, adopted in 2019 and in force since June 30, 2020, bars brokers from putting their own interests ahead of the customer's when recommending, and requires them to disclose and manage conflicts. It doesn't require ongoing monitoring or the cheapest option. Insurance-only agents selling fixed annuities fall under state insurance rules instead.
Why it matters for you
Many professionals switch hats between roles; knowing which duty applies to each recommendation tells you how much weight to give it.
Rules, limits and sources (2026)
SEC Regulation Best Interest and Form CRS, adopted June 2019, with the SEC's same-day interpretation of adviser fiduciary duty; FINRA Rule 2111 on suitability still covers institutional customers.
Watch out for
Critics say 'best interest' was never clearly defined and differs little from suitability; a 2024 Labor Department rule widening fiduciary duty for retirement advice was stayed by courts.
Connections (3)
▸Fiduciary duty vs. suitability (Reg BI) is the key test in Choosing a fiduciary advisor (fee-only, CFP, CPA, attorney)Law or rule (2026)
How they connect
The legal standard is the first filter when choosing an advisor. A fiduciary at all times must put client interests first in all advice; a broker under Reg BI must do so only when making a recommendation. Asking which applies, and getting the answer in writing, quickly sorts candidates.
When it applies
At the first meeting with any advisor; since June 30, 2020, firms must hand retail clients Form CRS at or before the start of the relationship.
The rule
SEC rules require Form CRS to state plainly whether the firm is a broker, an adviser or both, how it is paid and what conflicts it has.
Watch out for
SEC-commissioned RAND research (2008) found many investors cannot tell brokers from advisers; whether Form CRS has fixed that is unclear.
▸Rollovers & direct transfers trigger advice rules under Fiduciary duty vs. suitability (Reg BI)Law or rule (2026)
How they connect
Moving a 401(k) into an IRA is often a retiree's largest money decision, and the person recommending it usually earns more afterward. Reg BI requires a broker's rollover recommendation to be in the customer's best interest, and Labor Department rules require firms to document why moving beats staying put.
When it applies
At retirement or a job change; SEC Reg BI took effect in 2020, and the Labor Department's rollover documentation rule under PTE 2020-02 in 2022.
The rule
SEC staff guidance on account recommendations (2022), FINRA Regulatory Notice 13-45 and the Labor Department exemption all name rollovers as a high-conflict moment.
Watch out for
How far fiduciary duty should reach for one-time rollover advice is still litigated; the Labor Department's 2024 rule was stayed by Texas federal courts.
▸Securities and Exchange Commission (SEC) sets the rules for Fiduciary duty vs. suitability (Reg BI)Law or rule (2026)
How they connect
The SEC wrote Regulation Best Interest for brokers and, the same day, published its interpretation of the fiduciary duty that investment advisers owe under the 1940 Act. It enforces both, alongside FINRA for brokers and state regulators for smaller advisers.
When it applies
Adopted in Washington on June 5, 2019, by a 3–1 vote, with Commissioner Robert Jackson dissenting; compliance began June 30, 2020.
The rule
The published Reg BI and Form CRS releases; the SEC brought its first Reg BI enforcement case in 2022.
Watch out for
Critics, including Jackson, said Reg BI lets conflicts continue under a friendlier name; supporters say it raised broker standards while keeping commission-based advice available.