The Securities and Exchange Commission (SEC) has introduced a new set of rules called Regulation Best Interest (Reg BI), designed to ensure that those who buy and sell securities on behalf of clients do so in their clients’ best interest. So what else does Regulation BI include?
In a nutshell, the new regulations require brokers to:
- Disclose information: The rational for recommending a particular investment, along with information on any related fees, must be disclosed to a client either prior to, or at the time of, the recommendation.
- Exercise due diligence: Care must be taken to ensure that investment recommendations are always in the best interest of a client and that brokers never place their own interests ahead of those of their clients.
- Avoid conflicts of interest: Policies must be created to prevent any conflicts of interest so as to ensure that brokers are always providing the best possible recommendations for their clients.
We are your fiduciary
While the new regulations will, therefore, have no impact on my strategic, personalized approach to investing, they have created some new forms aimed at harmonizing the client experience across all firms.
As your financial advocate, I take great pride in always having gone above and beyond these regulations to help you achieve your financial goals. By working closely with you and providing you with all of the information you need to make sound investment decisions, I’m dedicated to helping you build a financial portfolio that’s best suited to your personal needs, goals, and investment horizon.
While the new regulations will, therefore, have no impact on my strategic, personalized approach to investing, they have created some new forms aimed at harmonizing the client experience across all firms. One of these new documents that you can expect to receive is the client relationship summary (Form CRS).
Form CRS
Form CRS is to be sent out to all new and existing clients to provide an easy way to understand the services we offer and to compare what’s offered by different companies across the industry. The form also includes information on whether a firm is a broker-dealer, Investment Adviser, or a dual registrant (registered as both).
Next Step
I invite you to book a meeting for a portfolio review so that we can work together to ensure your investments continue to align with your financial goals. As always, my goal is exactly the same as that of the new measures – to put your interests above all others.
A full description of the new Regulation Best Interest guidelines is also available on the U.S. Securities and Exchange Commission website.
Bottom line is this: As a Registered Investment Adviser Firm and fiduciary, we have always and will continue to place clients’ needs ahead of our own.
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Posted from Admin at Association Financial Services, LLC
