On September 28, the Securities and Exchange Commission announced that it will hold a roundtable on October 26 at which staff from the SEC and the Financial Industry Regulatory Authority (FINRA) will discuss initial observations on the implementation of Regulation Best Interest and Form CRS.
Regulation Best Interest and Form CRS went into effect September 10, 2019 and were designed to address the obligations of broker-dealers and investment advisers when they provide recommendations or investment advice to retail investors. Regulation Best Interest enhanced the broker-dealer standard of conduct beyond existing suitability obligations and requires broker-dealers, among other things, to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. Form CRS is a relationship summary designed to help retail investors make informed choices regarding whether a brokerage or investment advisory relationship, as well as whether a particular broker-dealer or investment adviser, best suits their particular needs and circumstances.
The roundtable will discuss initial observations from SEC and FINRA staff for Regulation Best Interest and Form CRS. Participants will include staff from the Office of Compliance Inspections and Examinations, the Division of Trading and Markets and the Division of Investment Management. The roundtable will be held by remote means, will be open to the public via live webcast and will take place from 1:00 p.m. to 3:00 pm (ET). Further details on the agenda and participants will be forthcoming.
A copy of the SEC’s press release is available here.