On April 18, 2018, the SEC proposed new rules requiring registered investment advisers and broker-dealers to provide retail investors with a client relationship summary on Form CRS.
Form CRS is limited to four pages and is required to contain the following section: (1) introduction; (2) the relationships and services offered by the firm; (3) standards of conduct; (4) the fees and costs to be paid by retail investors; (5) comparisons of brokerage and investment advisory services; (6) conflicts of interest; (7) where to find additional information; and (8) key questions. The intent of Form CRS is to reduce confusion among retail investors by providing the required information prior to any investment advisory agreement.
For more information, please see here.
