The markets are tumbling and 10 million people filed for unemployment in the last two weeks. But, don’t think for a second that the SEC is rolling back the June 30th Regulation Best Interest compliance deadline.
The SEC confirmed this week that it will not extend the deadline for Reg-BI and the Customer Relationship Summary Form.
Good-faith efforts are the key to compliance
The SEC is looking for good-faith efforts to reach compliance. The Commission seems to understand that many advisory businesses are constrained for resources and time during the pandemic.
So, you should be able to make a case for your firm if you are devoting at least some resources to compliance in addition to meeting government health and safety standards. The SEC Chairman also advised struggling firms to contact them if they are having any trouble managing COVID-19 and Reg-BI Compliance.
The SEC also has a number of other resources to help firms understand the new requirements and working toward implementation:
- A dedicated SEC mailbox for firms and others to submit questions: IABDquestions@sec.gov
- Small Entity Compliance Guide on Regulation Best Interest, available here
- Staff answers to frequently asked questions, available here
- A Spotlight Page for relevant materials including releases, comment letters, speeches, press releases, and transcripts, available here
RiXtrema has your Reg-BI Compliance Covered
Reg-BI Optimizer is the Easiest Way to show a “Good Faith Effort”
With an estimated $11k price tag and loads of new documentation requirements, Reg-BI can be overwhelming. But, RiXtrema can help advisors make sense of and reach compliance with RegBI for a fraction of the cost.
There are less than 3 months from the June 30th Reg-BI Compliance Deadline. Any action you take after that deadline will need to meet the new requirements.
Don’t wait until the SEC knocks to prove compliance. Start your journey today and show that you dedicated time and resources to compliance with Reg-BI Optimizer.