Reg B-I’s Relationship Summary is a Call to Action for Advisors with CRD Disclosures

Posted on March 4th, 2020 at 2:49 PM
Reg B-I’s Relationship Summary is a Call to Action for Advisors with CRD Disclosures

From the Desk of Jim Eccleston at Eccleston Law LLC:

Regulation Best Interest (“Reg B-I”) is set to take effect June 30, 2020. Under Reg B-I, Investment advisors and Broker-Dealers are required to provide a Form CRS, also known as a Relationship Summary, to retail investors.  The Relationship Summary must be provided to a retail investor at the beginning of the retail investor’s relationship with the firm, as well as at certain other events.  

Among a list of requirements, the Relationship Summary must include the financial professional’s legal and disciplinary history.  Required in the disciplinary history section of the Relationship Summary is any disciplinary history disclosed on a financial professional’s Form ADV, Form BD, Form U6, Questions 14 A-M of the Form U4, or Questions 7A or 7C-F of the Form U5.

The Relationship Summary must also include certain questions, called “conversation starters,” that a retail investor may want to ask.  The conversation starters encourage retail investors to ask specific questions on a range of topics, including whether a brokerage or investment advisory service is more appropriate for that retail investor, the specific fees and costs associated with a hypothetical $10,000 investment, and the qualifications of the financial professional with whom they are working. 

In our next discussion of Reg B-I’s Relationship Summary, we will provide examples of disclosable events, and how advisors can act now to clear their records by way of expungement and other actions.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, james eccleston, crd disclosures, regulation best interest, form crs

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.

 

May 15, 2024
NFA Issues Order Against 50.ai Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against 50.ai Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.