Investment Professionals & Investor Protection | Office Hours with Gary Gensler
Background
On June 5, 2019, the Securities and Exchange Commission adopted a package of rulemakings and interpretations designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers, bringing the legal requirements and mandated disclosures in line with reasonable investor expectations, while preserving access (in terms of choice and cost) to a variety of investment services and products. Specifically, these actions include new Regulation Best Interest, the new Form CRS Relationship Summary, and two separate interpretations under the Investment Advisers Act of 1940.
Individually and collectively, these actions are designed to enhance and clarify the standards of conduct applicable to broker-dealers and investment advisers, help retail investors better understand and compare the services offered and make an informed choice of the relationship best suited to their needs and circumstances, and foster greater consistency in the level of protections provided by each regime, particularly at the point in time that a recommendation is made.
Guidance for Broker-Dealers and Investment Advisers
Standards of Conduct
- Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers
Care Obligations - Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers
Conflicts of Interest - Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers
Account Recommendations for Retail Investors - Staff FAQ Relating to Investment Adviser Consideration of DEI Factors
Form CRS
- Staff Statement by the Standards of Conduct Implementation Committee Regarding Form CRS Disclosures (December 17, 2021)
- Form CRS Relationship Summary; Amendments to Form ADV: A Small Entity Compliance Guide (September 9, 2019)
- Frequently Asked Questions on Form CRS
- Relationship Summary Filing Workflow on IARD & Web CRD®
- Risk Alert: Examinations that Focus on Compliance with Form CRS
- No-Action Letters
Guidance for Broker-Dealers on Regulation Best Interest
Final Rules and Interpretations
Commission Press Release
Final Rules
- Regulation Best Interest: The Broker Standard of Conduct (final rule) (June 5, 2019)
- Form CRS Relationship Summary; Amendments to Form ADV (final rule) (June 5, 2019)
Interpretations
Background Materials
Proposal Materials
- Regulation Best Interest (proposed rule) (April 18, 2018)
- Form CRS Relationship Summary; Amendments to Form ADV; Required Disclosures in Retail Communications and Restrictions on the use of Certain Titles (proposed rule) (April 18, 2018)
- Form ADV General Instructions
- Instructions to Form CRS
- Dual Registrant Mock-up
- Broker-Dealer Mock-up
- Investment Adviser Mock-up
- Feedback on Relationship Summary
- Feedback Form Comment Summary
- Comments Received on the Form CRS Proposal
- Investor Testing on Form CRS Relationship Summary (November 7, 2018) (RAND)
- Proposed Commission Interpretation Regarding Standard of Conduct for Investment Advisers (April 18, 2018)
- Comments received on the Fiduciary Interpretation Proposal
- Transcripts from Investor Roundtables
- October 30, 2020 — Roundtable on September 20, 2018 Regarding Standards of Conduct for Investment Professionals
- August 10, 2018 — Roundtable on July 25, 2018 Regarding Standards of Conduct for Investment Professionals
- August 9, 2018 — Roundtable on July 12, 2018 Regarding Standards of Conduct for Investment Professionals
- August 6, 2018 — Roundtable on July 17, 2018 Regarding Standards of Conduct for Investment Professionals
- August 6, 2018 — Roundtable on July 9, 2018 Regarding Standards of Conduct for Investment Professionals
- July 31, 2018 — Roundtable on June 13, 2018 Regarding Standards of Conduct for Investment Professionals
- July 31, 2018 — Roundtable on June 4, 2018 Regarding Standards of Conduct for Investment
Prior SEC and Staff Studies and Comments
- Public Comments from Retail Investors and Other Interested Parties on Standards of Conduct for Investment Advisers and Broker-Dealer (Public Statement by Chairman Clayton) (June 1, 2017)
- Duties of Brokers, Dealers, and Investment Advisers (Request for Data and other Information) (May 1, 2013)
- Study on Investment Advisers and Broker-Dealers (January 2011)
Other Background
- Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
- Angela A. Hung, et al., RAND Institute for Civil Justice, Investor and Industry Perspectives on Investment Advisers and Broker-Dealers (2008)
- SEC Electronic Delivery Releases
- Use of Electronic Media, Exchange Act Release No. 42728 (April 28, 2000)
- Use of Electronic Media by Broker-Dealers, Transfer Agents, and Investment Advisers for Delivery of Information, Exchange Act Release No. 37182 (May 9, 1996)
- Use of Electronic Media for Delivery Purposes, Exchange Act Release No. 36345 (October 6, 1995)
Press Releases, Speeches, and Other Public Statements
Press Releases
- SEC Staff to Host October 26 Roundtable on Regulation Best Interest and Form CRS, (September 28, 2020)
- SEC Office of Compliance Inspections and Examinations Publishes Risk Alerts Providing Advance Information Regarding Inspections for Compliance with Regulation Best Interest and Form CRS (April 7, 2020)
- SEC Adopts Rules and Interpretations to Enhance Protections and Preserve Choice for Retail Investors in Their Relationships With Financial Professionals (June 5, 2019)
- SEC Chairman Clayton Invites Main Street Investors to ‘Tell Us’ About Their Investor Experience (June 29, 2018)
- Investing in America: SEC Commissioners are Heading to Atlanta to Interact with Investors (May 23, 2018)
Speeches and Other Public Statements
- Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers (April 20, 2023)
Care Obligations - Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers (August 3, 2022)
Conflicts of Interest - Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers (March 30, 2022)
Account Recommendations for Retail Investors - Statement on Recent and Upcoming Regulation Best Interest Examinations from the SEC Division of Examinations (December 21, 2020)
- Joint Statement Regarding New FAQs for Form CRS, (October 8, 2020)
- Staff Standards of Conduct Implementation Committee: Statement Regarding New Form CRS Disclosures (July 27, 2020)
- Chairman Jay Clayton: Confirmation of June 30 Compliance Date for Regulation Best Interest and Form CRS (June 15, 2020)
- Chairman Jay Clayton: Investors Remain Front of Mind at the SEC: Approach to Allocation of Resources, Oversight and Rulemaking; Implementation of Regulation Best Interest and Form CRS (April 2, 2020)
- Chairman Jay Clayton: Regulation Best Interest and the Investment Adviser Fiduciary Duty: Two Strong Standards that Protect and Provide Choice for Main Street Investors (July 8, 2019)
- June 5, 2019 (Adoption) Open Meeting Statements
- Chairman Jay Clayton, Statement on Investor Roundtables Regarding Standards of Conduct for Investment Professionals Rulemaking (August 22, 2018)
- Commissioner Peirce, What’s in a Name? Regulation Best Interest v. Fiduciary (July 24, 2018)
- Brett Redfearn, Remarks at the FINRA Annual Conference (May 22, 2018)
- Chairman Clayton, The Evolving Market for Retail Investment Services and Forward-Looking Regulation – Adding Clarity and Investor Protection while Ensuring Access and Choice (May 2, 2018)
- Dalia Blass, Remarks at the PLI Investment Management Institute 2018 (April 30, 2018)
- Jay Clayton, Chairman: Statement on Public Engagement Regarding Standards of Conduct for Investment Professionals Rulemaking (April 24, 2018)
- April 18, 2018 (Proposal) Open Meeting Statements
- Chairman Jay Clayton: Open Meeting Statement
- Chairman Jay Clayton: Overview of Proposal
- Commissioner Kara M. Stein: Open Meeting Statement
- Commissioner Michael S. Piwowar: Open Meeting Statement
- Commissioner Robert J. Jackson Jr.: Open Meeting Statement
- Commissioner Hester M. Peirce: Open Meeting Statement
- Chairman Clayton, Public Comments from Retail Investors and Other Interested Parties on Standards of Conduct for Investment Advisers and Broker-Dealers (June 1, 2017)
Roundtables
- Roundtable on Regulation Best Interest and Form CRS
(October 26, 2020)
Email Updates
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Contact Us
If you are a broker-dealer or associated with a broker-dealer, please contact the Division of Trading and Markets for general information:
General Questions - Broker-Dealers
Division of Trading and Markets
Office of Interpretation and Guidance
Email: tradingandmarkets@sec.gov
Phone: (202) 551-5777
If you are an investment adviser or associated with an investment adviser, please contact the Division of Investment Management for general information:
General Questions - Investment Advisers
Division of Investment Management
Chief Counsel’s Office (CCO)
E-mail: IMOCC@sec.gov
Phone: (202) 551-6825
Recent News
- Form CRS Frequently Asked Questions on Limited-Purpose Broker-Dealers, Principal Underwriters and Electronic Posting Requirement
- Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Care Obligations
- Staff FAQ Relating to Investment Adviser Consideration of DEI Factors
- Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Conflicts of Interest
- Frequently Asked Questions on Fiduciary and Fiduciary Duty
- Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Account Recommendations for Retail Investors
- Staff Statement by the Standards of Conduct Implementation Committee Regarding Form CRS Disclosures (December 17, 2021)
- Statement on Recent and Upcoming Regulation Best Interest Examinations from the SEC Division of Examinations (December 21, 2020)
- Statement by Chairman Jay Clayton at the SEC’s Staff Roundtable on Regulation Best Interest and Form CRS (October 26, 2020)
- Joint Statement Regarding New FAQs for Form CRS, (October 8, 2020)
- SEC Staff to Host October 26 Roundtable on Regulation Best Interest and Form CRS, (September 28, 2020)
- Statement by the Staff Standards of Conduct Implementation Committee Regarding New Form CRS Disclosures (July 27, 2020)
- Chairman Jay Clayton: Confirmation of June 30 Compliance Date for Regulation Best Interest and Form CRS (June 15, 2020)
- Chairman Jay Clayton: Investors Remain Front of Mind at the SEC: Approach to Allocation of Resources, Oversight and Rulemaking; Implementation of Regulation Best Interest and Form CRS (April 2, 2020)
- Frequently Asked Questions on Form CRS
- Frequently Asked Questions on Regulation Best Interest
Investor Resources
- Check Out Your Investment Professional
- Investor.gov/CRS
- About Investment Professionals
- Research Before You Invest
- Chairman Clayton’s Videos on Choosing a Financial Professional
External Sources
Modified: Dec. 8, 2023