Changes coming with Reg BI

I’m writing today to let you know about new federal laws (known as Regulation Best Interest, or Reg BI for short) aimed at protecting investors. While many financial professionals are already acting in the best interest of their clients, Reg BI adds four requirements to help ensure investors are getting unbiased financial advice that meets their individual objectives:

Disclosure: Increasing transparency between clients and financial professionals, providing more information about fees, services and firm relationships.

Care: Ensures and documents that recommendations made by financial professionals are in the client’s best interest, particularly related to cost and benefits.

Conflict: Potential conflicts of interest on the part of the financial professional when making recommendations must be clearly identified and communicated to clients, and then mitigated against or eliminated if possible.

Compliance: Reg BI requires detailed documentation of recommendations and the rationale for them to ensure the best interest standard is met.

So what does this mean for you?

In the short-term: More mail. This summer all clients will receive what’s called Form CRS (Customer Relationship Summary), which helps provide context for the financial services I offer. You’ll get an updated Form CRS anytime we need to discuss any new recommendations to help achieve your financial goals. Clients with brokerage accounts will also receive an informational brochure from my Broker Dealer firm.

In the long-term: Continued service in your best interest. These disclosures change nothing about our relationship, and I will continue to manage and monitor your accounts.

As always, I’m deeply grateful for the trust you put in me every day, and I’ll continue to do my best to earn it. If you have any questions about these new disclosures, let’s connect.