Law Students Come Up With Their Own Fiduciary SRO For RIAs Hot

According to the press release, the students formed the somewhat literally named Self-Regulatory Organization for Independent Investment Advisors (SROIIA) to ensure that there was a group out there that took fiduciary advisors' interests seriously.

While they note that the SEC lacks the resources to maintain a viable schedule for examining RIA activities, they provided little insight into how they plan to do so instead.

However, the students do have a point: the longer the industry waits to create a new SRO to take the burden off the SEC in accordance with the regulator's -- very carefully balanced -- recommendations, the more likely Congress will simply give the job to FINRA.

"Delaying the creation of an independent SRO pending the resolution of such budgetary issues would effectively cede the role of investment advisor SRO to FINRA, which stands ready to obtain SEC approval the moment that Congressional authorization of an investment advisor SRO materializes," they explain.

The group would focus on active compliance, inspections tailored to members' business and operational needs, and above all, fiduciary conduct.

It's an interesting solution, to say the least. They're actively soliciting comments and can be reached at Twitter @bizlawsociety or through Tim Collins, 678.756.0195.

This Website Is For Financial Professionals Only