Further testing of Fee-only IAs CRS forms reveal that fiduciary status is frequently omitted
Testing reveals CRS forms of Large BDs obscure or omit key facts on core roles/purposes of broker-dealers. Large fee-only RIAs downplay fiduciary status, 5 of 12 omit mentioning their highest legal standard
Since the 2008 SEC RAND Report, “investor confusion” has been the central story. The Institute argues that bad language, instead, is to blame.
Major repairs to Reg BI, Form CRS and Adviser Act guidance are proposed to affirm broker and adviser differences and to level with investors
Regulators treated brokerage sales and fiduciary advice differently for years, stressing the harms and risks of conflicts of interest. Avoiding conflicts, if at all possible, was the norm. That was yesterday.
By Knut A. Rostad and Darren M. Fogarty
MiFID II’s standard raises the transparency bar well above the U.S. SEC’s proposed Regulation BI and Form CRS.