So you just got a piece of paperwork in the mail labeled Form CRS, and you’re curious what it’s all about. Essentially, this form helps us be as transparent as possible with our clients. Of course, that seems like a simple explanation for such a detailed form.
Why am I receiving a Form CRS?
Government regulators—the Securities and Exchange Commission (SEC), specifically—require anyone handling investments on behalf of retail investors to provide paperwork with the details of that relationship. Overall, the SEC says its policy is:
designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers, bringing the legal requirements and mandated disclosures in line with reasonable investor expectations, while preserving access (in terms of choice and cost) to a variety of investment services and products.
More specifically, registered independent advisers (as well as representatives of broker-dealers) must provide a document to help investors decide whether to:
- Establish a relationship with the firm;
- Engage a particular firm or individual; or
- Terminate or switch a relationship or service.
That document is the Form CRS. Financial firms must send you this form:
- Prior to, or at the same time as, any recommendation or engagement;
- Any time there are material changes to the language in the Form CRS for existing clients and accounts;
- For certain account changes, such as an IRA rollover.
The Form must also be posted prominently on the organization’s website. You can find Bogart Wealth’s Form CRS here.
What information is included in a Form CRS?
These forms must be concise—no more than two pages for an independent advisor, like Bogart Wealth, or four pages for firms with more complex registrations. They must also be written in an easy-to-understand manner.
Each form must include:
- The firm’s name.
- How the firm is registered.
- The date of the relationship summary.
- Types of services offered (for example, managing investments, advising on investments, or both).
- Any material limitations on services offered.
- References and links to helpful information.
- The fees charged and how those fees are assessed.
- The legal obligations of the financial firms and the professional standards they operate under.
- Details around how the firm makes money.
- Explanation of any potential conflicts of interest.
- Contact details if you want or need more information.
Bogart Wealth is proud to be a fee-only fiduciary advisor. You can find more details in our own Form CRS.
For More Information
The SEC provides a website to help you learn more about Form CRS. You can also use it to search for information about different firms and individuals. If you have specific questions about the services Bogart Wealth offers or our Form CRS, contact Bogart Wealth.