U.S. SEC Chairman Confirms June 30 Deadline and Areas of Focus for Regulation Best Interest and Form CRS

In a public statement issued on June 15, 2020, U.S. Securities and Exchange Commission (SEC) Chairman Clayton confirmed the June 30, 2020, deadlines for compliance with Regulation Best Interest (Reg. BI) and the Form CRS requirements, echoing his statements from April that the implementation of Reg. BI and Form CRS requirements is necessary to protect investors, especially in the midst of COVID-19. As broker-dealers and investment advisers are well aware, the SEC adopted Reg. BI and Form CRS last year to enhance the quality and transparency of relationships with retail investors, which the SEC believes is more important than ever in times of market volatility. In the time since adoption, the SEC has continued to engage with broker-dealers, investment advisers, and market participants about these new requirements, including by providing answers to various FAQ. Our May 18, 2020, alert provided a brief overview of Reg. BI and Form CRS requirements and highlighted a few areas of continued focus (and potential pitfalls) for firms.

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