FINRA Pledges Resources to Support Members’ SEC Reg BI Compliance

The self-regulatory organization says it will help members implement the SEC's sweeping new conflict of interest disclosure rules.

FINRA has issued a regulatory notice to its members to remind them of the Securities and Exchange Commission’s (SEC) adoption of Regulation Best Interest (Reg BI) and the related requirement to furnish clients with a customer relationship summary, dubbed Form CRS.

FINRA notes that the SEC encourages firms to actively engage with the SEC staff as early as possible as compliance questions arise. A staff committee with representatives from the SEC’s Division of Investment Management, Division of Trading and Markets, Division of Economic and Risk Analysis, Office of Compliance Inspections and Examinations, and Office of the General Counsel has been established to assist firms with compliance.

FINRA’s notice says it will help members comply with Regulation Best Interest in various ways. To coordinate its support, FINRA has created a webpage for Reg BI where members can obtain information about the new rules. Moreover, FINRA plans to hold in-person meetings and workshops to assist firms. FINRA will announce these initiatives through various communication channels, including website announcements and emails to firms.

The SEC adopted Reg BI on June 5. Generally, firms must comply with Reg BI and Form CRS by June 30, 2020.