Form CRS Client Relationship Summary

Overview

The SEC has required that broker-dealers and investment advisers provide their clients with a disclosure document, Form CRS Client Relationship Summary. The relationship summary is intended to inform retail investors about: the types of client and customer relationships and services the firm offers; the fees, costs, conflicts of interest, and required standard of conduct associated with those relationships and services; whether the firm and its financial professionals currently have reportable legal or disciplinary history; and how to obtain additional information about the firm.

The new disclosure requirement was issued as part of a package of new rules and guidance that are intended to strengthen the obligations that broker-dealers and investment advisers owe to their clients. The two other principal parts of this package are Regulation Best Interest applicable to broker-dealers and the Interpretation Regarding the Standard of Conduct for Investment Advisers, each of these the subject of a separate topic page.

At the same time that the SEC issued the above rules and guidance, it also issued an interpretation of the advisory activities that a broker-dealer may offer as incident to its advisory services without being required to register as an investment adviser. See the topic page on the "Investment Adviser Definition."

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Special Counsel
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Statutes and Rules

As to Broker-Dealers

As to Investment Advisers