The Challenge of Complying in Plain English

By PATRICK DONACHIE, WEALTHMANAGEMENT.COM — Advisory firms are preparing for Regulation Best Interest’s implementation on June 30, including the mandate to craft a Form Client Relationship Summary (CRS). The summary is meant to detail the “client/advisor” relationship and be delivered to all retail clients. In the rule, the SEC demands that Form CRS be written in “plain English” and take into consideration retail investors’ “level of financial experience.”

The mandated brevity of the CRS adds more obstacles, according to Deborah Bosley, the executive director of The Plain Language Group, which advocates for more accessible language in financial services compliance documents. The SEC has demanded that brokers and RIAs must limit their CRS to two pages (or four for firms offering brokerage and advisory services).

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