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SEC warns Form CRS falls short but doesn’t prescribe fixes

Form CRS


Earlier this week, the Securities and Exchange Commission warned investment advisers and brokers that they’re falling short on a new client disclosure that went into effect last month — but it didn’t say how to fix it.

In a statement, SEC staff said that reviews of a cross-section of firms showed problems with the form and content of the client relationship summary, or Form CRS.

The document — part of an investment advice regulatory package anchored by Regulation Best Interest, the new broker standard — outlines a firm’s services, fees, conflicts of interest, standard of conduct and disciplinary history, among other information. The deadline for filing Form CRS was June 30.

Foreside’s Stephen Murphy, Managing Director, Broker-Dealer Consulting, provided commentary around the SEC keeping Form CRS on the “front burner” now that the compliance deadline has passed.  Read his full thoughts in Investment News HERE.