What is Form CRS? Adviser relationship summary
What is Form CRS? Form CRS is a short client or customer relationship summary that broker-dealers and investment advisers give retail investors in the United States. It explains, in plain English, the relationship on offer, the services, the fees, the standard of conduct, and the conflicts of interest. The US Securities and Exchange Commission (SEC) introduced Form CRS with its Regulation Best Interest package, effective June 2020. It is not investment advice.
Definition
Form CRS
is a short relationship summary that a US broker-dealer or investment adviser must give retail investors. It covers the services, fees, standard of conduct, and conflicts in plain English, capped at two pages for a standalone firm. It arrived with Regulation Best Interest in June 2020. Source: SEC.
Who files a Form CRS, and who reads it?
Broker-dealers and investment advisers that serve retail investors file it, and the retail investor is the reader. The firm must deliver the summary at or before the start of the relationship. Because it is built for a non-expert reader, it is deliberately short and standardised so a person can compare one firm against another.
How long is Form CRS?
The length is capped by design.
| Firm type | Page limit |
|---|---|
| Standalone broker-dealer | Two pages |
| Standalone investment adviser | Two pages |
| Dual registrant (combined summary) | Four pages |
Two pages
Maximum length of Form CRS for a standalone broker-dealer or investment adviser
Source: SEC
How does it relate to Form ADV?
For an investment adviser, the relationship summary is filed as Form ADV, Part 3, through the IARD system. That sits alongside the fuller Form ADV brochure, which carries the detail on the adviser's business, fees, and disciplinary history. A broker-dealer files its summary through Web CRD instead. Form CRS is the plain-English front door; the fuller documents are behind it.
Where Form CRS fits
Form CRS is a trust-and-transparency filing, not a holdings filing. If you want to check who runs a firm and how, start with the summary, then read the fuller Form ADV and learn how to read a Form ADV to verify an adviser. To find filings on the US system, see how to search SEC EDGAR.
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Frequently asked questions
What is Form CRS?
Form CRS is a short client or customer relationship summary that broker-dealers and investment advisers give retail investors. It explains the relationship, the services, the fees, the standard of conduct, and conflicts, in plain English. It came in with the SEC's Regulation Best Interest package. Source: SEC.
How long is Form CRS?
For a standalone broker-dealer or investment adviser, the relationship summary must not exceed two pages. For a dual registrant that combines its brokerage and advisory services in one summary, it must not exceed four pages. Source: SEC.
Is Form CRS the same as Form ADV Part 3?
For an investment adviser, yes. The adviser's relationship summary is filed as Form ADV, Part 3, through the IARD system. A broker-dealer files its relationship summary through Web CRD. The content follows the same Form CRS instructions. Source: SEC.
When did Form CRS take effect?
The relationship summary requirement took effect in June 2020, alongside Regulation Best Interest. Firms must deliver Form CRS to a retail investor at or before the start of the relationship and file it with the SEC. Source: SEC.
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Disclosures shown are public regulatory filings. Data may be delayed or incomplete. Smart-money entities may no longer hold positions shown. Not investment advice.