The short document worth reading before you sign.
Use a firm’s relationship summary to ask sharper questions about services, compensation, conflicts, and responsibilities.
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Original AI-assisted editorial illustration · Fortune 100 Brokers
Find the firm’s relationship summary
Form CRS is a brief relationship summary that SEC-registered investment advisers and broker-dealers serving retail investors provide. Investor.gov explains how to find it through its professional search tool. Ask the firm for its current version. Check the legal name so you know whose services the document describes, especially where a brand includes several businesses.
Read it with a pen in hand
The summary covers services, fees, conflicts, standards of conduct, disciplinary history, and questions to discuss. Mark anything that is unclear. Beside each heading, write one question about your proposed account. For example: Who will monitor it? What would cause my costs to rise? Where can I see the more detailed disclosures? Ask the firm to point to the answer in writing.
Ask which role applies
Some firms offer both brokerage and advisory services. Ask which service you are being offered and when the professional would act in each role. Have them explain your ability to approve decisions, their responsibility for monitoring, and who can trade. Avoid assuming that a job title tells you everything about the proposed relationship.
Make conflicts concrete
Instead of asking only whether conflicts exist, ask for an example of how compensation could affect a recommendation to you. What alternatives would be considered? Does the firm limit the products or providers it uses? Which document gives more detail? The aim is an explanation you can repeat in your own words.
Close the gaps before agreeing
Compare your notes with the actual service agreement and fee schedule. If a conversation seems inconsistent with a document, ask the firm to reconcile it. Keep copies of the versions you reviewed. The relationship summary is an introduction; it does not replace the other documents or your background research.
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Sources & further reading
Official resources to explore alongside this guide.
For general education. These guides do not provide individualized investment, tax, or legal advice. Verify professional information independently and discuss your circumstances with qualified professionals.
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