$2.$ What are the four key obligations for broker$-$dealers found under Regulation Best Interest? $$ Disclosure $$ Under the Disclosure Obligation certain disclosures must be made before or at the time of recommendation about the recommendation and the relationship between the retail customer and the broker$-$dealer. This includes whether the firm is acting as a broker$-$dealer or investment adviser, the fees and costs to the retail customer, the type and scope of services that the retail customer will be provided, and all material facts relating to conflicts of interest associated with the recommendation.

$$ Care $$ Under the Care Obligation broker$-$dealers must exercise reasonable diligence, care, and skill in recommending any transaction or series of transactions. This requires the broker$-$dealer to understand the risks, rewards, and costs of any recommendations and have a reasonable basis to believe such recommendation could be in the best interest of at least some retail customers. The broker$-$dealer must also have a reasonable basis to believe the recommendation is in the best interest of a particular retail customer based upon the customer$$s investment profile and the potential risks, rewards, and cost and does not place the interest of the broker$-$dealer ahead of such customer.

$$ Conflict of Interest $$ Under the Conflict of Interest Obligation broker$-$dealers must establish, maintain, and enforce written policies and procedures that identify and address conflicts of interest, either by disclosing or eliminating them. The firm must monitor and mitigate $($or eliminate$)$ conflicts that incentivize salespersons to prioritize their interests over those of the retail customer. Sales contests or other compensation based on the sale of specific securities within a limited period of time must be eliminated.

$$ Compliance $$ The Compliance Obligation is satisfied if$,$ in addition to policies required under the Conflict Obligation, a broker$-$dealer establishes, maintains, and enforces written policies and procedures that are reasonably designed to obtain compliance with Regulation BI$.$