News | 05.20.20
SEC Reg BI, Form CRS Exams to Start in July
The SEC will begin examining firms for compliance with Regulation Best Interest (Reg BI) and the customer relationship summary, Form CRS, in July, according to John Polise, associate director of the Broker-Dealer and Exchange group within the agency’s Office of Compliance Inspections and Examinations. During a recent Reg BI virtual panel hosted by FINRA, Polise said firms should prepare for some standalone Reg BI and Form CRS exams as well as regular exams that incorporate Reg BI and Form CRS oversight. Bari Havlik, head of exams at FINRA, stated on a separate virtual panel held Tuesday, that FINRA examiners’ initial Reg BI exam approach "is what the SEC has communicated in the last few months: first six months of Reg BI we’ll be looking at how firms approach implementing policies, procedures and controls to comply with Reg BI and working with the SEC to provide further guidance to the industry.”
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