Regulatory Outlook | 10.14.20
SEC Warns Firms Not to Omit Disciplinary History from Form CRS
SEC staff members have been finding shortcomings in a client relationship summary, known as Form CRS, that was implemented in June as part of broader investment advice reform centering on Regulation Best Interest. “In connection with its review of Form CRS filings, the staff Standards of Conduct Implementation Committee has observed examples of relationship summaries where firms did not provide a response in the disciplinary history section,” the SEC said. On Thursday, the regulator added four questions to its frequently asked questions document regarding Form CRS. The FAQs say the disciplinary history section cannot be omitted even if a firm and its advisors have no disciplinary background.
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