The Margin Between State And SEC Regulation Widens To Give RIAs More Flexibility

Monday, June 27, 2011 23:01
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The Margin Between State And SEC Regulation Widens To Give RIAs More Flexibility

Tags: sec

For RIAs on the edge of the $100 million line that will soon divide state from SEC supervision, life just got a little brighter.

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It turns out that the SEC is letting advisory firms with assets under management between $90 million and $110 million choose their regulator.

 

This gives these firms some vital flexibility when it comes to market-driven AUM fluctuations in particular.

 

Otherwise, if the $100 million limit mandated by Dodd-Frank was strictly enforced, RIAs on the edge could find themselves having to switch from SEC to state regulation after a bad market day, only to switch back once the markets recover.

 

 

 

 

 

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