Over the course of the Client Focused Reforms (CFR) journey, InvestorCOM has hosted a series of virtual forums for wealth management leaders to better understand the nuances of the regulation, openly discuss compliance challenges, and consider viable strategies for meeting the regulations. Anchored by these discussions, on February 2 2021, InvestorCOM hosted leading industry experts, […]
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With more than six months since the Regulation Best Interest compliance deadline, a heightened sense of anticipation is brewing around what wealth firms should expect in 2021. In retrospect, the Reg BI journey thus far has been riddled with uncertainty around what steps B-Ds needed to take to ensure compliance. During this period, some firms […]
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Reg BI’s Care Obligation requires a financial professional to consider reasonably available investment alternatives (RAA) offered by the broker-dealer (refer to “Reg BI’s Care Obligation and Reasonable Alternatives” for more information on this topic). While some may have implemented an RAA process for assessing mutual fund and ETF recommendations, Variable Annuities (VAs) may present yet […]
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Last week, the MFDA and IIROC published their much-awaited versions of the Client Focused Reforms (CFRs) (MFDA’s publication – IIROC’s publication). These versions are aimed to amend the Self Regulatory Organization’s (SRO’s) rules to adhere to provincial regulators’ requirements. The combined efforts of the provincial regulators and the SROs are intended to result in a […]
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Under the Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI) rule, broker-dealers (B-Ds) are mandated to act in the clients’ best interest. To do this, they must adhere to their obligations of disclosure, care, conflicts of interest and compliance. With the regulations now in effect, B-Ds have taken steps to achieve various degrees […]
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Meeting Reg BI’s care obligations may require financial advisors to consider one million data points per day Since the introduction of Regulation Best Interest (Reg BI) by the SEC earlier this year, there are several important changes for Broker-Dealers (B-D’s) and their representatives. The overarching goal of Reg BI is to enhance the broker-dealer standard […]
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For many wealth management firms, the last few months have gone by in a flash. The combined pressures of working remotely, executing business continuity practices and meeting the Reg BI implementation deadline have kept most teams burning the midnight oil. With the Reg BI implementation deadline now behind us, some may be hesitantly looking back […]
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With the introduction of Reg BI (Regulation Best Interest), wealth firms will be expected to implement the most significant wealth compliance reform in decades. The Reg BI implementation deadline in the US has recently passed on June 30, 2020. While most firms have met basic compliance requirements, many have deferred compliance technology decisions as the […]
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With Reg BI now in effect, broker-dealers and their representatives will need to illustrate how they are complying with the SEC’s Regulation Best Interest (Reg BI). One of the requirements dealers should pay close attention to is the Care Obligation and the consideration of Reasonably Available Alternatives (or RAA) when making a recommendation. What’s Changed? […]
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Who should care? SEC registered investment advisers, broker-dealers, and dual registrants, who do business with retail investors. Why Form CRS? Form CRS (client relationship summary) is designed to provide investors with simple and comparable, easy-to-understand information about the nature of their relationship with their financial professional.[1] What are the Deadlines? By June 30, 2020, all […]
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