Text of SEC Proposed Rule: Regulation Best Interest (PDF) 407 pages. "[The SEC is] proposing a new rule ... establishing a standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. The proposed standard of conduct is to act in the best interest of the retail customer at the time a recommendation is made without placing the financial or other interest of the broker-dealer or natural person who is an associated person making the recommendation ahead of the interest of the retail customer (Regulation Best Interest). This obligation shall be satisfied if:

• the broker-dealer or a natural person who is an associated person of a broker-dealer, before or at the time of such recommendation reasonably discloses to the retail customer, in writing, the material facts relating to the scope and terms of the relationship, and all material conflicts of interest associated with the recommendation;
• the broker-dealer or a natural person who is an associated person of a broker-dealer, in making the recommendation, exercises reasonable diligence, care, skill, and prudence;
• the broker-dealer establishes, maintains, and enforces written policies and procedures reasonably designed to identify and at a minimum disclose, or eliminate, all material conflicts of interest that are associated with such recommendations; and
• the broker-dealer establishes, maintains, and enforces written policies and procedures reasonably designed to identify and disclose and mitigate, or eliminate, material conflicts of interest arising from financial incentives associated with such recommendations."

Text of SEC Proposed Rule: Form CRS Relationship Summary; Amendments to Form ADV; Required Disclosures in Retail Communications and Restrictions on the Use of Certain Names or Titles (PDF) 471 pages. "The [SEC] is proposing new and amended rules and forms ... to require registered investment advisers and registered broker-dealers (together, 'firms ') to provide a brief relationship summary to retail investors to inform them about the relationships and services the firm offers, the standard of conduct and the fees and costs associated with those services, specified conflicts of interest, and whether the firm and its financial professionals currently have reportable legal or disciplinary events. Retail investors would receive a relationship summary at the beginning of a relationship with a firm, and would receive updated information following a material change. The relationship summary would be subject to Commission filing and recordkeeping requirements.

"The Commission also is proposing new rules to reduce investor confusion in the marketplace for firm services, specifically: [1] a new rule under the Exchange Act that would restrict broker-dealers and associated natural persons of broker-dealers, when communicating with a retail investor, from using the term 'adviser' or 'advisor' in specified circumstances, and [2] new rules under the Exchange Act and Advisers Act that would require broker-dealers and investment advisers, and their associated natural persons and supervised persons, respectively, to disclose, in retail investor communications, the firm's registration status with the Commission and an associated natural person's and/or supervised person's relationship with the firm." U.S. Securities and Exchange Commission [SEC]

Text of SEC Proposed Interpretation Regarding Standard of Conduct for Investment Advisers; Request for Comment on Enhancing Investment Adviser Regulation (PDF)
38 pages. "The [SEC] is publishing for comment a proposed interpretation of the standard of conduct for investment advisers under the Investment Advisers Act of 1940. The [SEC] also is requesting comment on: licensing and continuing education requirements for personnel of SEC-registered investment advisers; delivery of account statements to clients with investment advisory accounts; and financial responsibility requirements for SEC-registered investment advisers, including fidelity bonds.... [The SEC believes] it would be appropriate and beneficial to address in one release and reaffirm -- and in some cases clarify -- certain aspects of the fiduciary duty that an investment adviser owes to its clients under section 206 of the Advisers Act."
U.S. Securities and Exchange Commission [SEC]

SEC Fact Sheet on Proposals to Enhance Protections and Preserve Choice for Retail Investors in Their Relationships With Investment Professionals
"The Commission proposed two rules and an interpretation to address retail investor confusion about the relationships that they have with investment professionals and the harm that may result from that confusion.... A broker-dealer making a recommendation to a retail customer would have a duty to act in the best interest of the retail customer at the time the recommendation is made, without putting the financial or other interest of the broker-dealer ahead of the retail customer.... An investment adviser owes a fiduciary duty to its clients -- a duty that the Supreme Court found exists within the Advisers Act. The proposed interpretation reaffirms, and in some cases clarifies, certain aspects of the fiduciary duty that an investment adviser owes to its clients.... Investment advisers and broker-dealers, and their respective associated persons, would be required to provide retail investors a relationship summary.... The Commission will seek public comment on the proposed rules and interpretations for 90 days."
U.S. Securities and Exchange Commission [SEC]