SEC’s murky Reg BI FAQs; Amy Lynch offers insight (InvestmentNews)

Amy Lynch, Founder and President - FrontLine Compliance
Amy Lynch, Founder and President – FrontLine Compliance

Last week the SEC released FAQs on Reg BI, the central part of the new regulations passed by the SEC that intend to offer more protections to retail investors. Reg BI and its related Form CRS, the customer relationship disclosure document, are required to be implemented by June 30th of this year. Founder and President Amy Lynch offers her insight on the SEC’s FAQs, and why they do not go far enough or offer complete information for firms. She states that the SEC hedges its language in the FAQs because precise answers to questions depend on specific facts and circumstances. Ms. Lynch adds that guidance from the CFP Board is more helpful since it uses case studies that allow firms to do their own analysis on what applies to their specific circumstances. See InvestmentNews, “Answers to the SEC’s Reg BI FAQs depend on facts, circumstances“