Reg BI Disclosure Does Not Pass Readability Test

By DIANA BRITTON, WEALTHMANAGEMENT.COM — The Securities and Exchange Commission has circulated a mockup of its Customer Relationship Summary form, a disclosure requirement in its proposed Regulation Best Interest, which is meant to alleviate client confusion about the differences between brokers and registered investment advisors. But the mockup didn’t pass a simple readability test conducted by Dr. Deborah Bosley, owner of The Plain Language Group.

Bosley found that the document was written on a 14th grade level, while the average adult in the U.S. reads at an 8th grade level.

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