A total of 27 financial firms (21 investment advisors and 6 broker-dealers) agreed to pay civil penalties to settle the charges filed against them by the Securities and Exchange Commission (SEC).
The compliance examinations into financial firms conducted by the SEC Division of Examinations led to investigations by the Enforcement Division‘s Asset Management Unit. Following the investigations, the commission charged 27 financial firms for failing to timely file their client or customer relationship summaries (Form CRS) and failing to deliver them to their retail investor clients.
On June 5, 2019. the SEC adopted Regulation Best Interest to improve the quality and transparency of the relationships of registered investment advisors and broker-dealer with their clients.
Under Reg BI, registered investment advisers and broker-dealers are required to follow a variety of new rules and obligations including filing Form CRS to the SEC and delivering a copy to their prospective, new, and existing clients.
