Planners Expect Higher Regulatory Costs From Either The SEC Or FINRA - But They'd Prefer The SEC

Thursday, October 13, 2011 07:04
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Planners Expect Higher Regulatory Costs From Either The SEC Or FINRA - But They'd Prefer The SEC

Tags: FINRA

Planning industry luminaries would rather remain under SEC supervision, but they expect regulatory costs to rise either way.

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Marilyn Mohrman-Gillis and Susan John argued recently that FINRA has too many conflicts of interest to effectively monitor RIAs.

 

Mohrman-Gillis, who heads up the public policy team at the CFP Board of Standards, told the audience at a Women Advisor Conference panel that you just can't have a broker-dealer watching an advisory firm.

 

And if FINRA has to create a new RIA unit, she wonders, what's the point of assigning RIAs to FINRA in the first place?

 

John, the head of NAPFA, notes that a better-funded SEC could monitor advisors, but those funds mean higher taxes instead of FINRA user fees.

 

Either way, she says, RIAs will need to spend more on their own regulation.

 

 

 

 

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