SEC Seeks to Extend Best-Interest Advice Rule for Brokers
Published Date: 5/11/2026
Notice
Summary
The SEC is asking to extend a rule that makes broker-dealers act in their customers’ best interest when giving investment advice. About 2,183 broker-dealers must keep clear records and reduce conflicts of interest, helping protect everyday investors. This extension means no big changes now, but it keeps the important rules in place to ensure fair and honest financial advice.
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Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Compliance Burden on Broker-Dealers
The SEC estimates approximately 2,183 respondents must comply with Rule 151-1 and that the aggregate annual paperwork burden is 4,939,905 hours (2,262.9 hours per respondent). The aggregate annual cost burden is estimated at $2,036,820, or $933.04 per respondent, and the agency is requesting an extension of this information collection.
Brokers Must Put Investors First
Rule 151-1 (Regulation Best Interest) requires broker-dealers and their associated persons to act in the best interest of retail customers when recommending any securities transaction or investment strategy. About 2,183 broker-dealers must follow the rule, which includes keeping clear records, improving disclosures about the broker-customer relationship, and mitigating conflicts of interest.
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