On September 28th, the SEC announced that it will host an event on October 26th from 1:00 to 3:00 pm ET, which will bring together SEC staff and the Financial Industry Regulatory Authority (FINRA) for a roundtable that was announced in an earlier statement by the Staff Standards of Conduct Implementation Committee. The two groups will discuss initial observations following the June 30, 2020 compliance date for Regulation Best Interest and Form CRS.
Adopted by the SEC on June 5, 2019, Regulation Best Interest and Form CRS are part of a set of rules and interpretations meant to address the obligations of investment advisers and broker-dealers when they offer recommendations of investment advice to retail investors. Regulation Best Interest improved the broker-dealer standard of conduct beyond existing suitability obligations and requires that broker-dealers 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 decisions regarding whether a brokerage, investment advisory relationship, or a particular broker-dealer or investment adviser is the best fit for their individual needs and circumstances. The relationship summary promotes transparency and well-informed decision-making through clear, precise disclosures and by summarizing, in one selected place, information about a particular firm.
The roundtable participants will also include staff from the Office of Compliance Inspections and Examinations, the Division of Trading and Markets, and the Division of Investment Management. This virtual roundtable event is open to the public via live webcast and will be archived for later viewing on the SEC’s website. More details on the agenda and participants will be announced soon.