Registered Investment Advisors
SEC Staff Says It Will Make Conflicts Of Interest Of Dually-Registered RIAs An Areas Of Focus Of RIA Examinations In 2013
The Securities and Exchange Commission is focusing inspections of RIAs on conflicts of interest that rise from being dually registered with a broker-dealer as well as an RIA. The agency says its staff is also focusing on undisclosed fee arrangements between advisors and mutual funds and custody rules.
Give States Oversight And Examination Authority Over RIAs Managing $1 Billion Or Less To Solve The RIA Regulatory Mess
The number of RIAs regulated by the Securities and Exchange Commission has surged, and the amount of money managed by newly-regulated RIAs has exploded. While the Financial Planning Coalition, Investment Adviser Association and other groups representing RIAs have proposed increased funding for the SEC and “user fees” to pay for an RIA exam program, across the board cuts in federal spending mandated by law make decreased SEC funding to regulate investment advisors more likely.
What’s the solution?
Assign regulation of RIAs with less than $1 billion t
SEC Chief, Testifying Before Senate, Says Dodd-Frank Replaced 2,250 RIAs And $115 Billion AUM With 1,500 New RIAs Managing $3 Trillion
SEC Chair Elisse Walter, in testimony prepared for the Senate today, does not have much new to say about a regulatory solution for RIAs, which was mandated when the Dodd-Frank Act was passed in July 2010. But she offers up a scary fact about the regulatory mess the agency is facing.
“Since the Act became effective, approximately 2,250 formerly SEC registered advisers have transitioned to state registration and approximately 1,500 advisers to hedge funds and private equity funds have registered with the Commission,” says Walter in prepared remarks. “These new adviser registran
Massachusetts Calls On SEC To Prohibit RIAs From Using Mandatory Arbitration Clauses, Saying It Is "Troubling," Widespread And Not Consistent With Fiduciary Practice
The Secretary of the Commonwealth of Massachusetts, in a public letter, is calling on the U.S. Securities and Exchange Commission to prohibit Registered Investment Advisers from inserting mandatory arbitration clauses in their contracts, saying such clauses are widespread, not always in the best interest of consumers, and inconsistent with fiduciary practice.
FINRA Makes Arbitration Forum Available To Registered Investment Advisers
For many years, the vast majority of disputes between retail investors and their securities brokers have been resolved in arbitrations administered by the Financial Industry Regulatory Authority (FINRA). But, FINRA-administered arbitrations were not available to investors, or their financial advisors, where the client’s relationship was with a Registered Investment Adviser (RIA) not affiliated with a securities broker/dealer firm, as FINRA does not have authority over RIA firms.
This is changing.
More Articles ...
- Twitter Has Started Rolling Out The Option To Download All Your Tweets
- Appointment Of Elisse Walter As SEC Chair-Designate Makes FINRA More Likely To Be Named Self-Regulatory Organization Overseeing RIAs
- Another Advisor Claiming To Be A Fiduciary Accused Of Defrauding Investors
- Fiduciary Rule For Brokers? Not Dead Yet Say Advisors
