Checklist · Financial Services Regulation
Regulation Best Interest recommendation review checklist
Review checklist for a recommendation by a broker-dealer to a retail customer, using the four obligations in Rule 15l-1. It does not decide that a recommendation was in the customer's best interest.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- United States
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the authority it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when reviewing a sample of recommendation files against Regulation Best Interest. Do not use it as Form CRS, or as a conclusion that the recommendation met the rule.
Used for these tasks
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
Yellow: the lawyer reviews each file and decides whether the four obligations were met.
AI may
- Set out the disclosure, care, conflict and compliance questions in the order of Rule 15l-1(a)(2).
- Record the retail-customer and investment-profile definitions as questions, not as findings.
- Leave every conclusion blank for the lawyer.
AI must not
- Do not find that a recommendation was, or was not, in the retail customer's best interest.
- Do not write the disclosure that is given to the customer.
- Do not treat an Australian best-interests file note as if it were this rule.
The lawyer checks
- Confirm the person is a broker, dealer, or natural person who is an associated person of a broker or dealer.
- Confirm the recipient is a retail customer as defined in the rule.
- Read the recommendation record before answering the care questions.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
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More in Financial Services Regulation
- Authorised representative agreement and written authorisation (AFS licensee)
- File review against the best-interests steps in section 961B
- AFCA complaint: online form and downloadable complaint form
- Reportable situation (breach) report to ASIC: assessment worksheet and completion guide
- Client notice for AI-assisted or digital financial advice
- AFCA agent authority
- Hardship notice response letters under the National Credit Code (information request, decision and notice of change)
- Form CRS filing and delivery review checklist
- Record of retail, wholesale or sophisticated client status
- Review a benefit against the conflicted remuneration provisions that were opened
- Distributor’s design and distribution reports to the issuer: significant dealing notice, complaints report and periodic report
- AFCA statement of financial position
- AFS or credit licensee AI governance policy
- Regulation Best Interest conflict procedures checklist
- Client money handling checklist and procedure for an AFS licensee (s 981B accounts)
- Credit reporting correction request worksheet
- AFCA resolution of directors
- Target market determination (template with statutory checklist)
- Regulation Best Interest care and profile checklist
- Responsible lending unsuitability assessment record (credit providers)
- Internal dispute resolution (IDR) final response letter, with delay notification
All precedents for Financial Services Regulation · Tasks and AI use in this area