SEC Staff Says Firms Are Complying with Form CRS Requirements

The SEC Staff Standards of Conduct Implementation Committee (the "Committee") concluded that broker-dealers and investment advisers are complying with content and format requirements on Customer Relationship Summaries ("Form CRS").

Form CRS is intended to provide investors with key information about a broker-dealer or investment adviser in a standard format. Form CRS allows investors to compare different firms' services, fees and other relevant information (see previous coverage). Firms were required to begin delivering these summaries to retail clients, customers and prospects on June 30, 2020.

In its public statement, the Committee said that it reviewed a cross-section of CRS Forms, and found instances where firms lacked required disclosures or their disclosures were insufficiently clear. The Committee stated that it will share best practices with firms, and offer additional feedback as it continues its review.