The concern is that the SEC “is trying to level the playing field, not for true fiduciaries, but for those who are conflicted, such as securities and product sales people,” Peter Mafteiu, principal of Sound Compliance Corp., told Financial Advisor magazine.
“For the SEC to say that Reg BI is a universal best interest standard is just inaccurate. Dually registered advisors are only fiduciaries at the time they make a recommendation,” added Mafteiu, who is helping RIA firms use the word fiduciary in their Form CRS.
Rostad said that while many regulatory fixes can be complex and difficult, correcting the shortfall on Form CRS is not. “The solution here is clear and straight-forward. inform IAs they may cite and describe their fiduciary status on CRS,” he said.