Docupace, a cloud-based fintech digital operations software for the wealth management industry, has launched a new Regulation Best Interest and Form CRS digital service for broker-dealers and advisors.
The Security and Exchange Commission’s Regulation Best Interest goes into effect on June 30th, 2020, requiring broker-dealers and associated financial advisors to provide a relationship summary (Form CRS) to retail investors following certain trigger events, such as recommending a new investment product. Broker-dealers are also required to store records of Form CRS paperwork and delivery information.
The SEC has given broker-dealers a choice for how they would like to deliver and store Form CRS — on paper or electronically.
“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.”
Docupace claims that its electronic approach to Form CRS will eliminate a large portion of the administrative work associated with a paper-based approach.
“In addition to saving firms from added printing, mailing, faxing, and filing costs, an electronic Form CRS workflow can minimize opportunities for non-compliance,” the company said in a statement. “Firms will be able to use a multi-step paperless workflow to automatically generate different versions of Form CRS and other disclosures based on different parameters, like the advisor license information, and ensure the content in each disclosure is always up to date. The summary can then be delivered electronically to the investor.”
Docupace provides digital services to broker-dealers, RIAs, and their advisors that focus on streamlining and automating client onboarding, document management, advisor transitions, cybersecurity, and other workflows while maintaining SEC and FINRA compliance.