On Nov. 17, RUS CB amended basic standard for investment advisers.
RUS CB approved amendments to the basic standard for investment advisers.
Follows, RUS NFA Apr. 2023 new investor rights standard version, see rule #136646.
Summary
The updated version of the basic standard redefines individual investment advice (IIR).
Now, in some cases, investors receive recommendations for which the adviser is not responsible because the investor uses the disclaimer “is not investment advice”.
With the amendments, IIR will be considered information if it false an indication that the financial instrument meets the client’s goals, his risk appetite and desired return.
To ensure that the investor understands when they are receiving a recommendation and when they are not, the adviser is recommended to label the information provided.
The standard defines requirements for a disclaimer - it must be in readable font.
