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Firms Take Microscope to Rev Sources in Reg BI Docs

ignites steve murphy

Investors can now learn more about how their brokers and advisors make money — but the extent of their illumination may depend on the firms they choose for products and services.

Investment firms are now required to deliver Customer Relationship Summary forms (Form CRS) to clients, in compliance with the Securities and Exchange Commission’s best interest rule package.

Though the rule went into effect yesterday, the SEC was clarifying details about the Form CRS until Friday. Last week the agency said firms can omit statements that don’t pertain to their business models and forgo sending the document to investors who received one in the past 30 days.

Foreside’s Stephen Murphy, Managing Director, Broker-Dealer Consulting, provided insights into why firms may be providing more detail on how brokers get paid than their peers.  Read his full commentary in Ignites HERE.