Published on Apr 7th, 2020 |

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released risk alerts regarding examinations for compliance with Regulation Best Interest (“Reg-BI”) and Form CRS. These risk alerts will provide Broker-Dealers and Registered Investment Advisors (“RIAs”) with more information to understand the scope of the initial exams. The compliance date for Regulation Best Interest and Form CRS is June 30, 2020.  OCIE will begin conducting these examinations after June 30th.

  • The initial examinations of Reg-BI will focus on whether Broker-Dealers have implemented policies and procedures with reasonable effort to comply with Reg-BI. Also, whether those policies and procedures are effectively operating. 
  • Form CRS examinations include whether the firms have substantially implemented Form CRS (e.g., formatting, content, and updates), as well as reviewing the filing of and process for delivering the relationship summary. 

OCIE acknowledges that firms have been working hard implementing these policies and regulations and will be focusing on firms making “reasonable effort.”

For more information on how this may affect you please see below for the SEC’s Press release, as well as, the links to the risk alerts for Regulation Best Interest and Form CRS.

In addition, should any Broker-Dealers or RIAs, need assistance or templates to complete Form CRS, please contact us today! 

 

Press Release

https://www.sec.gov/news/press-release/2020-82

 

Regulation Best Interest 

 https://www.sec.gov/files/Risk%20Alert%20-%20Form%20CRS%20Exams.pdf

 

Form CRS

https://www.sec.gov/files/Risk%20Alert%20-%20Form%20CRS%20Exams.pdf

 

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