The Securities and Exchange Commission said Monday that it
will hold a roundtable Oct. 26 to discuss initial observations on Regulation
Best Interest and Form CRS implementation.
The virtual roundtable will include “initial observations”
of SEC and Financial Industry Regulatory Authority staff of compliance with Reg
BI and Form CRS since the June 30 compliance date.
The roundtable was previously announced in a statement by
the SEC’s Staff Standards of Conduct Implementation Committee.
A recent Wall Street Journal analysis took a look at the
Securities and Exchange Commission’s customer relationship summary, Form CRS,
and found that quite a few advisory firms are failing to disclose disciplinary
history.
The analysis, Financial Firms Fail to Own Up to Advisers’
Past Misdeeds, found that at least 1,300 brokerage and financial advisory firms
incorrectly stated on the new document that neither they nor their financial
professionals had legal or disciplinary histories, the Journal’s analysis
showed.
SEC Commissioner Caroline Crenshaw said during her
nomination hearing that she views two aspects of Regulation Best Interest
compliance as especially critical: ensuring firms are held “accountable when
they are not appropriately mitigating conflicts of interest,” and that Form CRS
actually provides “valuable” information.
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