Article
SEC Regulation Best Interest: A Practical Guide to Broker Dealers (00897094x9C8CB).pdf
ABA Business Law Today
(2020)
Abstract
On June 30, 2020 securities broker-dealers must begin their compliance with new SEC Regulation Best Interest and Form CRS Relationship Summary/Form ADV Part 3, which were announced by the Securities and Exchange Commission on June 5, 2019. These new regulations were promulgated under authority given to the SEC by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Regulation Best Interest has four components: (1) the disclosure obligation; (2) the care obligation; (3) the conflict of interest obligation; and (4) the compliance obligation. The Form CRS Relationship Summary/Form ADV Part 3 imposes an obligation on both broker-dealers and investment advisers to provide a Customer Relationship Summary to retail investors. For broker-dealers this form is called Form CRS. For investment advisers this form is Form ADV Part 3. This article will provide some basic preliminary guidance on how broker-dealers and investment advisers can prepare for the June 30 compliance date.
Keywords
- Regulation Best Interest,
- Reg BI,
- Reg B.I.,
- Broker Dealer Regulation,
- Best Interest,
- Fiduciary Dugy
Disciplines
Publication Date
Spring May 13, 2020
Publisher Statement
This article represents the viewpoints of the authors alone and does not reflect the viewpoints of OneBeacon, FINRA, Fordham University or Mound Cotton.
Citation Information
Barry R. Temkin, Cynthia L. King and Mitchell S. Markarian. "SEC Regulation Best Interest: A Practical Guide to Broker Dealers (00897094x9C8CB).pdf" ABA Business Law Today (2020) Available at: http://works.bepress.com/barry_temkin/66/