On October 26, 2020, the United States Securities and Exchange Commission (“SEC”) hosted an online roundtable discussion on Regulation Best Interest and Form CRS, with contributions from senior staff at the SEC and the Financial Industry Regulatory Authority (“FINRA”). Divided into two panels, the online roundtable focused on issues and observations made by SEC and FINRA staff (referred to collectively here as “the staff”) regarding Regulation Best Interest and Form CRS. To view the archived webcast, click here.
Category Archives: ADV Part 3
SEC Issues Joint Statement on New FAQs Focusing on Disciplinary Disclosures for Form CRS/Form ADV Part 3
November 02, 2020
On October 8, 2020, the United States Securities and Exchange Commission (“SEC”) issued a new joint statement from Chairman Jay Clayton, Dalia Blass, Director of the Division of Investment Management, and Brett Redfearn, Director of the Division of Trading and Markets regarding the Form ADV Part 3. In the statement, the SEC Chairman and Directors discussed the importance for investment adviser and broker dealer firms to clearly and succinctly make required disciplinary disclosures in the Form CRS/Form ADV Part 3. The statement highlighted the publication of several new FAQs for the Form CRS/Form ADV Part 3, which are now available here. To read the SEC’s joint statement, click here.
Investment Advisers Disclosing Disciplinary Events on Form ADV Part 3
September 22, 2020
Intended to be a concise and easily understandable disclosure for retail investors, the United States Securities and Exchange Commission (“SEC”) implemented the Form CRS/Form ADV Part 3 relationship summary to help SEC registered investment advisers provide information to their retail investor clients about the relationships and services the investment adviser firm offers, fees and costs that retail investors will pay, specified conflicts of interest and standards of conduct, and disciplinary history. To learn more about the SEC’s requirements of Form CRS/Form ADV Part 3, please see our website page at https://www.ria-compliance-consultants.com/form-adv-part-3-faqs/ .
SEC Publishes New Website for Main Street Investors
June 22, 2020
On June 15th, 2020, the United States Securities and Exchange Commission (“SEC”) announced a new website designed for Main Street Investors, intended to help retail investors navigate the new Form CRS/Form ADV Part 3. Published in a “Question and Answer” format, the website explains to retail investors the purpose of the Form CRS/Form ADV Part 3 and describes the information they can expect to find in the Form CRS/Form ADV Part 3. Click here to view the SEC’s new website for Main Street Investors. As an SEC registered investment adviser firm prepares its Form CRS/Form ADV Part 3 training for its supervised persons, RIA Compliance Consultants recommends that a review of the Main Street Investors website should be included as a component of such compliance training.
Oklahoma Withdraws Requirement for State Registered Investment Advisers to File Form ADV Part 3
June 20, 2020
On June 19, 2020, the Oklahoma Department of Securities announced the withdrawal (effective immediately) of its recent requirement that state registered investment adviser firms must file the Form CRS/Form ADV Part 3 relationship summary as part of the Form ADV filing.
Form CRS/Form ADV Part 3 Testing for Compliance
June 18, 2020
With the fast approaching deadline to file and deliver the new Form CRS/Form ADV Part 3 relationship summary, investment adviser firms registered with the United States Securities and Exchange Commission (“SEC”) must take steps to test their compliance with this Form CRS/Form ADV Part 3 rule. In its recent Risk Alert, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) discussed what SEC registered investment adviser firms can expect from an examination that focuses on Form CRS/Form ADV Part 3 compliance. Click here to read the SEC’s Risk Alert.
Form ADV Part 3 Conversation Starters
June 16, 2020
The filing and delivery deadline for the new Form CRS/Form ADV Part 3 relationship summary is fast approaching, and many investment adviser firms have not yet prepared the answers for the ADV Part 3 Conversation Starters which are included in the text of a Form ADV Part 3 relationship summary.
Form CRS/Form ADV Part 3 Filing and Delivery
June 05, 2020
On June 5, 2019 the U.S. Securities and Exchange Commission (“SEC”) approved a new rule requiring investment adviser firms to provide retail investment clients with a Consumer Relationship Summary, also known as the Form CRS or Form ADV Part 3. An SEC registered investment adviser’s initial Form CRS/Form ADV Part 3 must be filed via IARD by June 30, 2020. The ADV Part 3 filing and delivery deadline is July 30, 2020. With this fast approaching deadline, investment advisers must act now to ensure the Form ADV Part 3 is timely filed and delivered.
Compliance with the new Form CRS/Form ADV Part 3 is fast approaching for investment advisers registered with the U.S. Securities and Exchange Commission (“SEC”) and certain state securities regulators. An SEC registered investment adviser’s initial Form CRS/Form ADV Part 3 must be filed via IARD by June 30, 2020 and delivered to existing clients no later than July 30, 2020. Click here to read our recent blog on the SEC’s decision to maintain the original June 30, 2020 filing deadline.
