{"id":6456,"date":"2020-04-29T13:06:47","date_gmt":"2020-04-29T18:06:47","guid":{"rendered":"https:\/\/rixtrema.com\/blog\/?p=6456"},"modified":"2020-04-29T14:19:24","modified_gmt":"2020-04-29T19:19:24","slug":"reg-bi-risk-alerts-for-broker-dealers-and-investment-advisers","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/reg-bi-risk-alerts-for-broker-dealers-and-investment-advisers\/","title":{"rendered":"Reg BI Risk Alerts For Broker-Dealers And Investment Advisers"},"content":{"rendered":"\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"#1\">Two new Risk Alerts:<\/a><\/li><li><a href=\"#2\">Don\u2019t Wait to Become Compliant<\/a><\/li><\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"text-align: justify;\">Forgive us if you\u2019re getting sick of reminders that Reg-BI is not being delayed by the SEC. As Luke wrote this week, the <a href=\"https:\/\/rixtrema.com\/blog\/the-reg-bi-train-cant-be-stopped-and-is-arriving-soon\/\">Reg-BI train can\u2019t stop and is arriving soon<\/a>, and <a href=\"https:\/\/rixtrema.com\/blog\/author\/colin-ward\/\">Colin is writing so much about Reg-BI<\/a> that it\u2019s starting to come out of his ears.<\/p>\n<p style=\"text-align: justify;\">The reception to Reg-BI Optimizer and <a href=\"https:\/\/rixtrema.com\/preview-Reg-BI.pdf\">the E-book guide<\/a> has been fantastic. Our clients see that we\u2019re not crying wolf, and we\u2019ll continue to bring you updates long after the June 30, 2020 compliance deadline.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1\"><strong>Two new Risk Alerts:<\/strong><\/h2>\n\n\n\n<p style=\"text-align: justify;\">Early April, the SEC\u2019s Office of Compliance Inspections and Examinations (OCIE) released two Risk Alerts for<a href=\"https:\/\/www.sec.gov\/files\/Risk%20Alert-%20Regulation%20Best%20Interest%20Exams.pdf\"> Reg BI<\/a> and <a href=\"https:\/\/www.sec.gov\/files\/Risk%20Alert%20-%20Form%20CRS%20Exams.pdf\">Form CRS<\/a> on April 7, 2020. The Risk Alerts intended to inform broker-dealers and investment advisers about the scope and content of initial examinations after the compliance date of June 30 for Reg BI and Form CRS.<\/p>\n<p style=\"text-align: justify;\">The Director of OCIE said:<\/p>\n<p style=\"text-align: justify;\">\u201cWe understand that this implementation will be on the iterative process, and our focus will be on firms continuing good faith and reasonable efforts, including taking into account firm-specific effects from disruptions caused by COVID-19.\u201d<\/p>\n<p style=\"text-align: justify;\">Soon after the OCIE\u2019s release, April 8, the Financial Industry Regulatory Authority (FINRA) indicated in their<a href=\"https:\/\/www.finra.org\/media-center\/newsreleases\/2020\/finra-statement-secs-ocie-risk-alerts-reg-bi-and-form-crs?utm_source=MM&amp;utm_medium=email&amp;utm_campaign=O%5FWeekly%5FUpdate%5F040820%5FFINAL\"> statement<\/a> that they will take the same approach described in the SEC Risk Alerts to examine broker-dealers and their associates for compliance with Reg BI. The only slight difference comes in focus to assess whether or not firms have made a \u201cgood faith effort to develop and implement procedures and policies reasonably designated to comply with Reg BI and Form CRS.\u201d<\/p>\n<p style=\"text-align: justify;\">As always, FINRA will take action if they find any indications of customer harm or violation of current standards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2\"><strong>Don\u2019t Wait to Become Compliant<\/strong><\/h2>\n\n\n\n<p style=\"text-align: justify;\">It is easy to make errors when updating procedures and documentation processes. The next two months before compliance are essential<\/p>\n<p style=\"text-align: justify;\">I also want to emphasize that RiXtrema stands ready to work with RIA and BD firms to help you reach the Reg-BI and Form CRS requirements by June 30. On our <a href=\"https:\/\/rixtrema.com\/blog\/the-reg-bi-train-cant-be-stopped-and-is-arriving-soon\/\">blog<\/a>, we have many articles on Reg-BI and a <a href=\"https:\/\/rixtrema.com\/blog\/client-relationship-summary-crs-form-checklist\/\">CRS Form Checklist<\/a>.<\/p>\n<p style=\"text-align: justify;\">Click the banner below to schedule a quick demonstration of our Flagship Compliance Software \u2013 Reg-BI Optimizer. A top fiduciary law firm, Groome Law Group, reviewed the software for compliance requirements, and it has a step-by-step process to make sure you document and ask the questions required by Reg-BI.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/rixtrema.net\/regbioptimizer\/index?source=Luke-29-04\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"120\" src=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2020\/04\/Reg-BI-Optimizer-download-banner-min.png\" alt=\"\" class=\"wp-image-6451\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2020\/04\/Reg-BI-Optimizer-download-banner-min.png 600w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2020\/04\/Reg-BI-Optimizer-download-banner-min-300x60.png 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2020\/04\/Reg-BI-Optimizer-download-banner-min-500x100.png 500w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Two new Risk Alerts: Don\u2019t Wait to Become Compliant Forgive us if you\u2019re getting sick of reminders that Reg-BI is not being delayed by the SEC. As Luke wrote this week, the Reg-BI train can\u2019t stop and is arriving soon, and Colin is writing so much about Reg-BI that it\u2019s starting to come out of&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/reg-bi-risk-alerts-for-broker-dealers-and-investment-advisers\/\" class=\"excerpt-read-more newsstand-button\">Read More<\/a><\/p>\n","protected":false},"author":11,"featured_media":6460,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[300],"tags":[1282,277],"class_list":["post-6456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation-best-interest","tag-reg-bi-optimizer","tag-regulation-best-interest"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2020\/04\/Reg-BI-Risk-Alerts-For-Broker-Dealers-And-Investment-Advisers1-min.png","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reg BI Risk Alerts For Broker-Dealers And Investment Advisers<\/title>\n<meta name=\"description\" content=\"Forgive us if you\u2019re getting sick of reminders that Reg-BI is not being delayed by the SEC. 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