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SEC Smacks 27 Firms Over Reg Bi

The Securities and Exchange Commission settled with 21 investment advisers and six broker-dealers for a total of $910,092 in the first significant enforcement action related to Reg Bi since it was enacted last year. So reports Compliance Week.

guilty 3096217 1920The actions were brought for failure to timely file and deliver their client or customer relationship summaries (Form CRS) to retail investors in a timley fashion.

According to the reg, Form CRS needed to be delivered to prospective and new retail investors by the end of June 2020 and the end of July for existing retail investor clients. Firms also had to post the forms on their websites. All of the firms that were charged missed those deadlines.

“The orders find that none of the firms filed or delivered [their] Form CRS, or posted it to [their] website, until being twice reminded of the missed deadlines by their regulators—in the case of investment advisers, by the SEC’s Division of Examinations, and in the case of broker-dealers, by the Financial Industry Regulatory Authority,” the SEC stated.

Read the full article from Compliance Week.


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