On June 5, 2019 the U.S. Securities and Exchange Commission (SEC) voted on and approved four rules relating to the proposed standards of conduct rulemaking package that was originally proposed in April 2018. The approved rulemaking package includes:
- Regulation Best Interest (BI) designed to raise the standard of conduct for broker-dealers;
- CRS Relationship Summary designed to provide retail investors working with investment advisers or broker-dealers with a standardized, concise summary of the relationship and services the firm offers, the standard of conduct and fees and costs associated with the services, specified conflicts of interest, and any reportable legal or disciplinary events;
- A Standard of Investment Conduct for Investment Advisers designed to affirm and clarify the investment adviser fiduciary duty; and
- Interpretation of Solely Incidental designed to provide more clarity regarding broker-dealer and investment adviser activities.
Each proposal passed with a vote of 3 for and 1 against. The rules will become effective 60 days after their publication in the Federal Register. Click here to view an SEC Press Release about the four proposals.
As more details become available, RIA Compliance Consultants will continue to provide information regarding how these rules will affect investment advisers.
Posted by RCC
Labels: Form CRS, Regulation Best Interest, Regulation BI, SEC