Cheers on a Wednesday evening from Sonja Rae ~ More info on Reg BI and Form CRS (coming June 2020), as if you haven’t heard enough! 🙂
Reference SEC details here. Reference the CHECKLIST here. (as Ice Cube says, “check yo self”…. lol, now I’m really showing my age, ignore that!)
As we know, this new standard “Regulation Best Interest” differs from “suitability” requirements. If you or your RIA firm could use help creating Form CRS, or you would like to outsource other compliance items, RIA-CCO is a professional low-cost outsource solution that helps RIA Compliance Officers with projects of any size.
FINRA released a checklist to help member firms comply with new broker investment advice and disclosure requirements approved earlier this year.
As posted on FINRA’s website, this checklist covers Regulation Best Interest, as well as a client disclosure document known as Form CRS. This helpful checklist contains about 20 items related to “Reg BI” and eight related to “Form CRS” clarification and explains the difference from the suitability standard that is currently in place.
The checklist states that Reg BI applies to advisory, brokerage and retirement accounts. It requires brokers to keep new criteria in mind as they give investment advice. It includes an explanation of how Reg BI affects the recommendation of a firm’s proprietary products and also says firms must make full written disclosure of conflicts of interest, such as the sale of proprietary products and the receipt of third-party payments.
Form CRS has very specific instructions for Hybrid RIA’s and RIA’s.
Thank you for your support, I sincerely appreciate my network of wonderful people beside me ~
Yay, I’m out, and done for today!
