Washington D.C., Sept. 28, 2020 —
The Securities and Exchange Commission today announced October 26 as the date for its roundtable at which Commission staff and the Financial Industry Regulatory Authority (FINRA) will discuss initial observations on Regulation Best Interest and Form CRS implementation.
Regulation Best Interest and Form CRS were adopted by the Commission on June 5, 2019 as part of a package of rules and interpretations 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 relationship summary promotes transparency and better-informed decision making through clear, concise disclosures and by summarizing in one place selected information about a particular firm.
The roundtable, which was previously announced in a statement by the Staff Standards of Conduct Implementation Committee, will discuss initial observations from staff and FINRA following the June 30, 2020 compliance date 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, the Division of Investment Management, and FINRA. The roundtable will be held by remote means, will be open to the public via live webcast, and will be archived for later viewing. The event will take place from 1:00 to 3:00 pm ET. Further details on the agenda and participants will be forthcoming.