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