What You Need to Know
- Each of the firms charged missed regulatory deadlines.
- Certain firms failed to include information and language specifically required for Form CRS.
- Six investment advisors and six broker-dealers have agreed to settle charges.
The Securities and Exchange Commission said Wednesday that six investment advisors and six broker-dealers have agreed to settle charges related to failing to file and deliver a customer relationship summary, or Form CRS, to their retail clients.
The advisors and BDs failed to file and deliver the form to retail investors by the required deadline and, in some cases, failed to include necessary information and language, the SEC said.
With the actions Wednesday, the SEC has now charged 42 financial firms “for failing to meet the obligations that are required to ensure retail investors understand their relationships with their securities industry professionals,” said Sanjay Wadhwa, deputy director of the SEC’s Enforcement Division, in a statement.
Wadhwa urged firms “that continue to be delinquent in fulfilling their Form CRS obligations to come into compliance with the law and to self-report to the SEC.”
In July, the SEC announced settlements with 27 other financial firms for similar failures to timely file and deliver their Forms CRS to retail investors.
Just before Christmas, the SEC issued sweeping guidance on Form CRS, pointing to numerous disclosure aspects of the rule where advisors are falling short.