On June 5, 2019, the SEC implemented Reg BI under the Securities Exchange Act of 1934 establishing a Best interests standard of conduct for broker dealers and staff when recommending any securities transaction or investment strategy involving securities.

A relationship summary, or Form CRS, must now be shared with customers so you can make an informed decision, knowing whether your investment will benefit the brokerage regardless of its benefit to you.  On October 8, FINRA just released new Best Interests Resources to assist member firms with SEC compliance by June 30,2020.  A checklist and Form CRS is available on FINRA’s webpage.

How this affects investors:

The checklist is designed to help brokerages guard against untrained investment advisors, recommending investments that are of no benefit to the investment customer  FINRA maintains no obligation to monitor investment accounts after a recommendation unless there is an agreement between you and your broker for a certain amount of monitoring service, i.e. quarterly basis.  Broker Investors are to guard against excessive trading.

BD’s (Broker Dealers) should weigh alternative’s to the recommendation and fees and costs must be disclosed so customers can make informed decisions especially on their retirement investments. 

Customer must be informed of any requirements to open or maintain an account or relationship.  Risks associated with recommended investments must be disclosed.  Investmentsstore.com prides itself on pairing visitors with informed, compliant Broker Advisors who can help develop and implement your investment strategies.