---
title: "Regulation Best Interest conflict procedures checklist"
url: "https://ailawframework.com/precedents/financial-services-regulation/us-reg-bi-conflict-procedures"
type: "precedent"
site: "AI Law Framework"
id: "a28-us-reg-bi-conflict-procedures"
area_id: "A28"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A28-X20261018-6"]
law_stated_as_at: "2026-10-22"
---

# Regulation Best Interest conflict procedures checklist

> Checklist for the written conflict procedures in Rule 15l-1(a)(2)(iii), including the elimination of specified sales contests. It does not clear a remuneration arrangement.

Canonical page: https://ailawframework.com/precedents/financial-services-regulation/us-reg-bi-conflict-procedures  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Financial Services Regulation](https://ailawframework.com/precedents/financial-services-regulation.md)
- Jurisdictions: United States
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for United States.

## When to use it

Use when reviewing a broker-dealer's written procedures, or a representative's pay, against the conflict obligation in Regulation Best Interest. Do not use it to approve a bonus plan.

## Used for these tasks

- [Review an adviser or representative remuneration arrangement for conflicted remuneration](https://ailawframework.com/practice/financial-services-regulation/review-an-adviser-or-representative-remuneration-arrangement-for-conflic.md)

## How AI may be used

Yellow: the lawyer compares the written procedures with each limb of the conflict obligation.

**AI may:**

- Quote the four limbs of paragraph (a)(2)(iii) as questions against the firm's procedures.
- Ask whether any contest, quota, bonus or non-cash compensation falls within limb (D).
- Leave the mitigation method blank for the lawyer to describe from the procedures.

**AI must not:**

- Do not decide that a conflict is mitigated.
- Do not redesign a pay plan.
- Do not treat an Australian conflicted-remuneration ban as this paragraph.

**The lawyer checks:**

- Read the pay arrangement and the written procedures together.
- Check limb (D) against contests based on sales of specific securities or specific types of securities within a limited period.
- Confirm the procedures are maintained and enforced, not only drafted.

## Authorities

- [17 CFR § 240.15l-1 (Regulation Best Interest)](https://www.law.cornell.edu/cfr/text/17/240.15l-1)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/financial-services-regulation/us-reg-bi-conflict-procedures and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*