New disclosure form required for financial planners


BINGHAMTON, NY – Individual investors have a new tool to show them exactly what fees they’re paying to their financial planners.

As part of Best Interest of the Client regulations being enacted by the Securities and Exchange Commission, or SEC, investment firms must now make available a Customer Relationship Summary Report.

We spoke with SEED Planning Group about the new document.

The report outlines in plain English the types of services a firm offers, fees, costs and any conflicts of interest as well as whether the business has any reportable legal or disciplinary history.

SEED Managing Partner Travis Maus calls it the “No Broken Promises” rule.

“If the two things don’t line up, if I’m told I’m going to get things that I don’t see on that disclosure, or if I see something on the disclosure that contradicts what they’re telling me that I’m going to get, it’s the disclosure that I need to go by. I think it really helps people so that we’re not getting sold things. We’re really understanding what it all means,” he said.

The CRS report must be posted on a firm’s website and produced on request.

SEED has gone a step further by mailing it out to all of its customers.

The report is either two pages for companies that are fee only, such as SEED, or a four page report for firms that receive commissions.

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