Form CRS & Reg BI Disclosure Obligation Data Checklist
The Disclosure Obligation arm of Reg BI is where the simplest examination findings live. Form CRS not delivered, conflicts disclosed in the brochure but not surfaced at recommendation, fee schedules in marketing inconsistent with the disclosed schedule. Each finding maps to a missing structured artifact — a delivery timestamp, an acknowledgment, an event tied to a recommendation. This checklist is the data-side companion to the Reg BI Care Obligation audit checklist. Together they cover the disclosure side of the examination.
Form CRS delivery & acknowledgment
- Initial Form CRS delivery to retail customers
For every retail-customer relationship, the initial Form CRS delivery timestamp, version delivered, and delivery channel. Delivery before-or-at the recommendation, not after.
form_crs.deliveries[].customer_id, .version, .delivered_at, .channel - Acknowledgment of receipt
Timestamped acknowledgment that the customer received the Form CRS. Verbal acknowledgment with rep's contemporaneous note is acceptable but must be structurally captured.
form_crs.acknowledgments[].customer_id, .acknowledged_at, .method - Updated CRS re-delivery on material amendments
When Form CRS is materially amended, re-delivery to existing retail customers within 60 days. Delivery trail must show the amended version.
form_crs.amendments[].effective_date, .redelivery_log[] - Trigger-event re-delivery (new account, new product)
Re-delivery on triggering events — opening a new account type, recommending a new product type, providing rollover advice. Each trigger event must reconcile to a delivery record.
form_crs.trigger_event_log[]
Reg BI Disclosure Obligation — full and fair
- Material facts about the relationship
Disclosure of the capacity of the firm (broker-dealer / IA / dual-registrant), the type of account, the services provided, and the material limitations of those services.
disclosures.relationship.{capacity, account_type, services, limitations} - Material fees and costs
Documented fees and costs for each recommended product including direct fees (commissions, advisory fees), indirect fees (expense ratios, surrender charges), and indirect compensation. Disclosure must be at recommendation, not solely in account-opening.
disclosures.fees[].product, .direct, .indirect, .compensation_paths[] - Type and scope of recommendation
Disclosure of the type of recommendation (account type, securities transaction, investment strategy) and any limitations (e.g. only proprietary products available).
recommendations[].type, .scope_disclosure_text
Conflict of interest disclosure
- Material conflict inventory
Documented inventory of every material conflict — proprietary product compensation, third-party payments, revenue-sharing, principal trades, IPO allocations, sales contests. Each conflict requires both disclosure and mitigation.
conflicts[].id, .type, .description, .disclosure_text, .mitigation_strategy - Conflict-disclosure timing tied to recommendations
Conflict disclosures surfaced at the time of the recommendation when the conflict applies, not solely in the account-opening packet. Trail must tie disclosure event to specific recommendation.
recommendations[].conflict_disclosures_surfaced[] - Compensation-incentive disclosure
Disclosure of incentive compensation tied to specific recommendations — bonus structures, sales contests, proprietary-product spiffs. The 2024 sweep cited these as commonly missed.
compensation.incentives_disclosed[] - Limited-product-menu disclosure
If the firm sells only proprietary products or a limited menu, disclosure of that limitation at recommendation. 'Available products' language must be accurate to the actual menu.
disclosures.product_menu.{is_limited, scope_description}
Marketing-Rule consistency (Rule 206(4)-1)
- Testimonial and endorsement inventory
Per the Marketing Rule (effective Nov 2022), inventory of every testimonial / endorsement used in marketing with the required disclosures (compensation, material conflicts, etc.).
marketing.testimonials[].id, .compensation, .conflicts, .disclosures_present - Performance-presentation supporting records
For every performance figure in marketing, the underlying GIPS-or-equivalent calculation records, gross-vs-net presentation, and time-period basis. Books-and-records retention applies.
performance_records[].calculation_basis, .net_of_fees, .time_period - Hypothetical-performance pre-conditions
Hypothetical performance has rule-mandated pre-conditions (intended-audience policies, supplemental-information availability). Each hypothetical-performance use must reconcile to the policy gating it.
marketing.hypothetical_performance[].audience_policy_id - Brochure-marketing reconciliation evidence
Periodic reconciliation that marketing claims (testimonials, fees, services) match the brochure (Form ADV Part 2A). Inconsistencies are the 2024 sweep's most-cited Marketing-Rule finding.
marketing.brochure_reconciliation_log[]
Document retention & retrieval
- Versioned disclosure document store
Versioned storage of every Form CRS, brochure, and disclosure document with effective dates. Examiners ask for the version delivered to a specific customer at a specific date.
documents.versions[].id, .doc_type, .effective_date, .superseded_at - Per-customer disclosure history retrieval
API or workflow to retrieve every disclosure delivered to a specific customer with timestamp and version. Manual retrieval that takes hours is a finding when documented in the request log.
customer.disclosure_history[] - Books-and-records retention period
Per Rule 17a-4 / Rule 204-2, retention period appropriate for each record class. Disclosure delivery records typically 6 years; advisory records typically 5 years.
retention.disclosure_records.years
Key takeaways
- Disclosure Obligation findings are the simplest to prevent — every gap maps to a missing structured artifact (delivery timestamp, acknowledgment, version reference).
- Form CRS must be delivered at-or-before recommendation, with re-delivery on material amendments and on trigger events. The trigger-event trail is what most firms miss.
- Conflict disclosure must be timed to the recommendation when the conflict applies, not solely in account-opening packets. Surfacing-at-recommendation requires a structured trail.
- Marketing-Rule + brochure consistency under Rule 206(4)-1 is the current enforcement focus. Periodic reconciliation evidence is the cheapest way to prevent the most-cited finding.