According to FINRA, The GMS Group, LLC was censured and fined $35,000 in January 2026 for failing to establish written supervisory policies and procedures reasonably designed to comply with Regulation Best Interest (Reg BI) and the Form CRS customer relationship summary requirements—two foundational investor protection rules adopted by the SEC in 2019.FINRA found that the East Hanover, New Jersey-based firm's policies and procedures failed to describe the specific steps representatives should take to make recommendations in customers' best interests. They provided no methods for supervisors to review recommendations for compliance with Reg BI's Care Obligation, such as procedures for evaluating whether representatives had considered costs and reasonably available alternatives before making a recommendation. Equally absent was any framework addressing Reg BI's Conflict of Interest Obligation—the firm's policies provided no mechanism for identifying, disclosing, or mitigating conflicts of interest associated with recommendations to retail customers. There was also no framework for preventing, detecting, or promptly correcting Reg BI violations. The firm ultimately revised its WSPs to address these deficiencies.FINRA also found that the firm's written procedures were deficient with respect to Form CRS obligations under Exchange Act Rule 17a-14. Form CRS is a brief, standardized document that broker-dealers and investment advisers must provide to retail investors, summarizing services, fees, conflicts of interest, and other key information. The firm's WSPs contained no procedures for preparing, filing, or updating the Form CRS; delivering it to prospective or new retail customers; creating or maintaining records related to it; or designating a supervisor responsible for ensuring compliance with Form CRS obligations. The firm ultimately revised its WSPs to address these gaps as well.For investors, this case serves as a reminder that Reg BI and Form CRS are not just paperwork requirements—they are designed to give retail investors meaningful protections and clearer information. Investors should request a copy of their broker's Form CRS before opening an account, review it carefully to understand how their broker is compensated, and ask questions about any conflicts of interest identified. A firm with robust Reg BI policies is better positioned to ensure its brokers are consistently acting in customers' best interests.