SEC Sets Date for Reg BI, Form CRS Roundtable
SEC and FINRA staff will discuss “initial observations” of compliance with the best-interest rules.
The Securities and Exchange Commission said Monday that it will hold a roundtable Oct. 26 to discuss initial observations on Regulation Best Interest and Form CRS implementation.
The virtual roundtable will include “initial observations” of SEC and Financial Industry Regulatory Authority staff of compliance with Reg BI and Form CRS since the June 30 compliance date.
The roundtable was previously announced in a statement by the SEC’s Staff Standards of Conduct Implementation Committee.
A recent Wall Street Journal analysis took a look at the Securities and Exchange Commission’s customer relationship summary, Form CRS, and found that quite a few advisory firms are failing to disclose disciplinary history.
The analysis, Financial Firms Fail to Own Up to Advisers’ Past Misdeeds, found that at least 1,300 brokerage and financial advisory firms incorrectly stated on the new document that neither they nor their financial professionals had legal or disciplinary histories, the Journal’s analysis showed.
SEC Commissioner Caroline Crenshaw said during her nomination hearing that she views two aspects of Regulation Best Interest compliance as especially critical: ensuring firms are held “accountable when they are not appropriately mitigating conflicts of interest,” and that Form CRS actually provides “valuable” information.