Registered Investment Advisers had a June 30th deadline for delivery of the new Form CRS to their clients. The forms also need to be filed with the SEC. If you thought the SEC would not look at them, you were wrong.
The SEC’s new Standards of Conduct Implementation Committee has been reviewing the Form CRS submissions to assess compliance with the format and standard requirements of the Form CRS regulations.
It sounds like the Committee is not happy with what it’s seen so far.
The relationship summaries reviewed to date generally reflect effort by firms to meet the content and format requirements of Form CRS….
That sounds like they’re giving out a participation trophy to a lot of firms. A comforting coach thanking players for coming out even though they lost.
Not all are mediocre or bad. The Committee found some good examples with simple, clear disclosure. It intends to find ways to share best practices and feedback. There should be a roundtable in the fall for the Committee’s staff to share ideas.
As for private fund managers, funds are not considered natural persons who would be retail investors under the Form CRS regulation.
Sources:
