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Regulation Best Interest: Are you Impacted?

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Emily Zerbato, Compliance Analyst for LifePro Asset Management, addresses Regulation Best Interest, “Reg BI”, and the significance for Broker Dealers and Registered Investment Advisers. Additionally, this short video discusses how LifePro Asset Management already meets this high standard of care, and what comes next in meeting the requirements under Reg BI.

Regulations are not new to the financial services industry as we’ve seen over the decades. Despite best efforts of the industry, regulators continue to find issues in their examinations and ultimately receive complaints from retail investors. Thus, regulators continue to shape the industry closer towards a fiduciary standard for all the players involved – from Brokers to Insurance Agents, Advisers and Money Managers. Reg BI is the newest movement towards a consistent standard of care in the industry requiring Broker Dealers and Registered Investment Advisers to act in the best interest of the client, and to disclose risks, compensation structures and other conflicts of interest through a new disclosure summary.

As a Registered Investment Adviser, LifePro Asset Management has been operating under a fiduciary obligation since our inception. The term “Fiduciary” means to act with the client’s best interests first – this means to eliminate and mitigate any conflicts of interest the adviser may have when making recommendations. When an adviser can no longer reduce the conflict, full and fair disclosure is made to the client. This is the fiduciary duty of all Registered Investment Advisers – and in this respect, representatives of LifePro Asset management are already held to those strict standards.

Reg BI implements new disclosure requirements which significantly impact Broker Dealers, previously held to Know Your Customer and Suitability regulations, now subject to further transparency in disclosing risks, compensation structures and other conflicts of interest.  Both Broker Dealers and Registered Investment Advisers will prepare the new FORM CRS – Client Relationship Summary. Form CRS is a succinct summary of the current disclosure brochure (Form ADV Part 2A and Part 2B) that Investment Advisers are required to prepare and deliver to clients. The Form includes “Conversation Starters” which allow the adviser to answer those questions directly. While the new Form CRS is still in addition to the brochure, it helps advisers control the conversation by explaining the in’s and out’s of doing business with firm along with any conflicts of interests, and the risks associated. 

LifePro Asset Management’s Form CRS is available in the link below. Regardless if you are registered with LifePro Asset Management, we are happy to answer any questions related to Reg BI and the New Form CRS. So please feel free to reach out, and we’d be happy to help.

Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. As such, information in these materials may change at any time and without notice. This communication is in no way a solicitation or an offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Investments involve risk and are not guaranteed.

Robert Reaburn

Robert Reaburn

Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management. He works with financial advisors building diverse financial portfolios that best empower their clients with a lifetime of financial security.

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