06.16.20

Just 2 States Require Their Investment Advisors to File Form CRS

by: Mark Schoeff

Investment advisors registered with the Securities and Exchange Commission (SEC) are scrambling to put together a client relationship summary (CRS) required by the agency’s investment advice reform rules that go into force at the end of the month. Advisors registered at the state level don’t have the same deadline bearing down – unless they operate in Oklahoma or Rhode Island. Most state regulators have resisted Form CRS from the beginning of the rulemaking process. In an Aug. 23, 2018, comment letter, the North American Securities Administrators Association outlined their concerns about the disclosure document. State regulators have criticized the SEC for promulgating Form CRS without conducting appropriate investor testing. Most states are not imposing a Form CRS requirement on their advisors because of continued worries that it won’t be effective.

Read the full article on InvestmentNews.