Compliance and Regulatory Alerts  |  07-27-21

SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures

SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures

As we noted in early June 2021, the honeymoon period in which firms needed to show merely a “good faith” effort at compliance with Regulation Best Interest (“Reg BI”) and Customer Relationship Summary Form (“Form CRS”) requirements is now over.

The Securities and Exchange Commission announced in a statement yesterday that “21 investment advisers and 6 broker-dealers have agreed to settle charges that they failed to timely file and deliver their client or customer relationship summaries – known as Form CRS – to their retail investors.”

According to the SEC’s orders, “each of the firms charged today missed those regulatory deadlines. The orders find that none of the firms filed or delivered its Form CRS, or posted it to its website, until being twice reminded of the missed deadlines by their regulators—in the case of investment advisers, by the SEC’s Division of Examinations, and in the case of broker-dealers, by the Financial Industry Regulatory Authority.”

Read the SEC press release here

How Bates Helps Firms Achieve Form CRS and Reg BI Compliance:

The Bates Compliance team helps BD, IA and Hybrid firms meet their Form CRS and Reg BI compliance obligations. We develop, review and update Form CRS, and also support firms with Form CRS gap analyses, risk assessments, consistency reviews, and training. For a full list of services, visit our Reg BI and Form CRS resource page.

How will regulators scrutinize your firm and clients' Reg BI and Form CRS compliance? Read our article to find out:

Regulators Get Tough on Reg BI and Form CRS Phase Two Compliance

To speak with Bates concerning your Reg BI and Form CRS needs, please contact us at:

E: contact@batesgroup.com

T: 503-670-7772

 

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