Insights | 07.08.20
For Wealth Managers, the SEC’s New Reg BI Puts Awkward Fine Print Up Front
While firms are taking different approaches to some of the planning around the SEC's Regulation Best Interest rule, certain provisions are prescriptive and applicable across the industry, such as the Form CRS disclosure document, according to UBS head of advisory and planning products Steven Mattus. The rule and that disclosure requirement will most impact advisors when they approach prospective clients, according to Mattus, who says it requires some “awkward” disclosures during early conversations with advisors unable to answer questions with recommendations without first sending over disclosure documents and other, longer forms. “It changes that interaction that the financial advisors have with current prospects,” he adds. However, for top advisors at the firm, he said “this is not a fundamental change to anyone's business model as far as we can tell.”
Read the full article on Forbes.