It lives.

Retail investors won new protections more than two years ago when the suitability standard was replaced with Regulation Best Interest. The new rule, which is the brokerage industry's standard of client care, requires brokers to recommend fully-explained investments that align with a client's financial goals and to disclose any conflicts of interest.?

A step up from its predecessor, Reg BI still falls short of the fiduciary standard, the highest level of client care, that governs independent investment advisors. And contrary to what you may think, its predecessor still has a role to play.

Sign up here?to receive Financial Planning's complete newsletter — delivered to your inbox daily.

The suitability rule made a surprising appearance recently, in a FINRA ruling against a London-based brokerage with New York operations. Reporter Dan Shaw explains how and why Laidlaw & Co.’s settlement with the Wall Street watchdog turned out the way it did — and the questions it raises about the teeth of Reg BI.

Read more: Can brokerages be held to the suitability standard? Sometimes, the answer is yes

In other news: