10.15.19
Bill Requiring Investor Testing of SEC Disclosures Headed Toward House Approval
by: Mark, Jr. Schoeff
Legislation that would require the SEC to conduct investor testing of disclosures, otherwise known as Form CRS, will come up for a vote later this week on the House floor. The measure would require the SEC to incorporate qualitative testing for new disclosures for retail investors, to make the findings available for public comment, and to test existing retail disclosures. The legislation was inspired by doubts among Democrats and investor advocates about new disclosures included in the investment advice reform regulatory package the SEC approved in June. Form CRS is designed to help investors understand the differences between retail investment advisors and brokers. Given the Democratic majority in the House, the bill is likely to be approved. There is no companion bill in the Senate.
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