Regulation Best Interest (BI) and Our Clients
by Matthew Petrozelli, CEO
Regulation BI is designed to establish a “best interest” standard of conduct for broker dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Last week, in compliance with the U.S. Securities and Exchange Commission (SEC) and Regulation BI, we sent a new regulatory document out to all existing clients – Form CRS. This form provides our clients and the investing public with more transparency around our broker dealer, Valley National Investments, Inc., and our Registered Investment Advisor Firm, Valley National Advisers, Inc. Fees, costs and conflicts of interest are highlighted in addition to important links that help educate new clients. Since the delivery of Form CRS, I want to share some FAQs:

Does my relationship or the fees I pay with VNFA change?
No, this is a disclosure document only. All fee and compensation arrangements are still the same as is your relationship with your advisor.

What is the difference between Valley National Advisers (VNA) and Valley National Investments (VNI)?
VNA is a SEC Register Investment Advisor, which means that our Financial Advisors are held to a fiduciary standard and are obligated to put their clients’ interests ahead of their own. Clients who use VNA are charged an asset management fee and/or separate flat/hourly fee for planning. VNI is a FINRA registered broker dealer that provides securities to clients for a commission. VNI focuses on sale of securities and does not offer discretionary investment management.

Why have both?
VNFA is dedicated to giving our clients the most options. Most of our Financial Advisors are dually registered and can help clients navigate what is best. Today, we see most of our clients use VNA as it has more options for customization for planning, wealth management, and uses a fiduciary standard.

Do I need to take any action?
No. Please reach out to your Financial Advisor if you have specific questions. Regulations have changed significantly since our firm was founded in 1985. For 35 years, VNFA has been committed to core values anchored in a client-first culture. Our team always has and will continue to serve the best interests of our clients in pursuit of their financial goals.