This article originally appeared in Financial Planning by Tobias Salinger
Excerpt from the article:
Clients and industry professionals have the Form ADV at their disposal to tell whether any RIAs have registered reps, and the SEC’s Investor.gov website enables users to see whether advisors are advisers, brokers or both. For advocates like Knut Rostad, president of the Institute for the Fiduciary Standard, the disclosure language itself makes the task of picking out fee-only RIAs from all the others much more difficult.
He points to the new Customer Relationship Summary, Form CRS, that the SEC began requiring under Reg BI last year to decide which firms should make the list. A serious list of RIAs would seek out the terms “fiduciary” or any identifying language about it to create the rankings, Rostad said in an email.
“Required CRS language informs investors that the standard broker-dealers and investment advisers are required to meet is the same,” Rostad said. “This language is grossly misleading. To mitigate this bad language, RIA leaders may choose to report they meet a fiduciary standard and describe what this means on CRS. Real fiduciary leaders will do so.”
Read the full article at FinancialPlanning.com.