Investment Advisers and Broker Dealers have until June of 2020 to establish their compliance with Regulation Best Interest and Form CRS. Additionally, the Solely Incidental and Fiduciary Duty releases introduces another dynamic which firms will need to address for compliance confidence.
NRS Consultants have the expertise to understand how your firm’s specific business practices apply to the requirements of the Fiduciary Duty Release, Regulation Best Interest, the Solely Incidental Release and Form CRS and can assist firms with:
- NRS IA “Fiduciary Duty” Interpretive Release Check-Up Service which includes an offsite document review of Form ADV disclosures, conflicts of interest and client agreements. In addition, your consultant will assist in developing policies and procedures and prepare and conduct web-based training for your representatives.
- “Regulation Best Interest” Targeted Onsite Compliance Review will focus on assessing a firm’s preparedness to comply with the obligations imposed by Regulation BI including a review of existing disclosures, assessment of controls designed to understand the potential risks and rewards of recommendations, assessment of written policies and procedures including but not limited to policies requiring the identification and disclosure or elimination of conflicts of interest, representative training, remediation of non-compliance, periodic review and testing and maintenance of required records. NRS will conduct an exit interview with appropriate firm management to discuss and explain major findings as well as recommended corrective measures.
- “Solely Incidental” Interpretive Release Focused Offsite Review Service will review and assess services (other than transaction-only services) to determine whether they fall within the SEC’s understanding of “solely incidental.” NRS will also review client agreements, advertising and marketing materials, sales literature, and client correspondence to determine if services are described in any way that could be inconsistent with the “solely incidental” provision of the Advisers Act under the SEC’s new guidance. NRS will develop written policies and procedures to ensure that the firm assesses services on an ongoing basis and will provide training to all registered representatives, marketing and compliance staff via the web to ensure that they fall within the SEC’s understanding of “solely incidental.”
- Form CRS Preparation services will include the creation of this disclosure document.