Financial Services Institute Lashes Back: FINRA Perfect For RIAs Hot

In a letter to the SEC, the FSI puts forward the argument that FINRA is accustomed to regulating ground-level intermediaries and that a system that "mirrors the structure utilized to supervise broker-dealers" is the answer to RIA oversight in the wake of the Dodd-Frank financial reform act.

A coalition of planning groups -- the FPA, NAPFA and the CFP Board -- has warned that regulating fidicuary advisors as though they were sales-oriented registered representatives is a recipe for disaster. They would rather heighten the differences between the RIA and broker models by keeping RIAs under the SEC's oversight.

Expect this kind of chess game around what exactly constitutes an "advisor" to continue into the new year.

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