On the heels of RIA in a Box announcing its new tool for automating the creation of Form Customer Relationship Summary (CRS), cloud-based document management provider Docupace said it has launched a new tool to help broker/dealers and advisors electronically deliver, store and automate Form CRS.
As part of its Regulation Best Interest package, approved last June, the Securities and Exchange Commission requires broker/dealers, registered reps and investment advisors provide the relationship summary to retail investors following certain trigger events. The rule goes into effect June 30.
While firms can go with a paper-based approach, Docupace’s tool is completely digital. It will automatically generate customized versions of Form CRS and other disclosures, using different parameters, such as the advisor's license information. It can then be delivered electronically to the client, and the tool allows for an acknowledgment to confirm that the client received it, although this is not mandated by the SEC. The documents will then be stored electronically and made available to show compliance.
"One of the highest priority issues facing many broker-dealers and investment advisors today is simplifying Reg BI compliance," said Michael Pinsker, founder of Docupace. "Digital delivery, storage, and automation of Form CRS and disclosures are paramount to streamline requirements of Reg BI."
Despite an industry push to delay Reg BI’s June 30 implementation date, SEC Chairman Jay Clayton recently announced the agency would not push back the compliance deadline. This week the agency released new guidance on what examiners will be looking for in regards to Form CRS compliance.
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