SEC & The Form CRS

Air Date: February 8th, 2021

The purpose of the form CRS is to provide the client with easy to understand language that will detail the way their advisor operates. It is so easy to use, in fact, that it states the questions you should be asking your advisor and their team.

Key Questions

Given my financial situation, should I choose an investment advisory service? Why or Why Not?

    1. How will you choose investments to recommend to me?
    2. What is your relevant experience, including your licenses, education and other qualifications?
    3. What do these qualifications mean?
    4. What fees will I pay?
      • Asset-based fee
      • Fixed fee
      • Hourly fee
      • Mutual fund/ETF fees
      • Transactional fees when buying or selling securities
    5. Help me understand how these fees and costs might affect my investments. If I give you $100,000 to invest, how much will go to fees and costs, and how much will be invested for me?
    6. How might your conflicts of interest affect me and how will you address them?
      • Example: Third Party Payments – Persons providing investment advice on behalf of our firm are licensed as insurance agents. These persons will earn commission-based compensation for selling insurance products. Insurance commissions are separate and in addition to our advisory fees. This practice presents a conflict of interest because they have an incentive to recommend insurance products to you for the purpose of generating commissions rather than solely based on your needs.
    7. As a financial professional, do you have any disciplinary history? For what type of conduct?
    8. Who is my primary contact person?
    9. Is he or she a representative of an investment advisor or a broker-dealer?
    10. Who can I talk to if I have concerns about how this person is treating me?