Commission Brokers Will Take Another Hit When They Tell Clients They Dont Monitor Accounts

23 Dec    Investing News

Come June of next year, brokers will need to start showing customers in side-by-side comparisons, that they do not monitor their accounts, while advisors and advisor reps do.

The disclosure is part of the Securities and Exchange Commission’s Regulation Best Interest Form CRS (customer relationship survey), which will go live on June 30, 2020. Form CRS is designed to illustrate to investors the differences in the relationships and services they get and how they’ll pay for them.

What the form will clearly communicate to brokerage customers is that they will be receiving little or no account monitoring for the commissions they pay, in sharp contrast to the monitoring and advice they’ll get from advisors for a fee, according to broker-dealer executives and regulators who spoke at Finra’s Best Interest conference in Washington, DC earlier this week.

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