State regulators pursue increased oversight of advisers

Denise Voigt Crawford, NASAA's new president, wants states to regulate advisers with up to$100 million

Sep 16, 2009 @ 9:27 am

By Sara Hansard

In the coming months, state securities regulators will focus on increasing the threshold for state regulation of investment advisers to $100 million, according to Texas securities commissioner Denise Voigt Crawford.

Ms. Crawford, the new president of the North American Securities Administrators Association Inc., outlined a broad policy agenda at NASAA's annual meeting in Denver this week.

Currently, the Securities and Exchange Commission regulates all advisory firms that manage more than $25 million. Advisory firms managing less than $25 million are regulated by the states.

The SEC would have to authorize the increase that NASAA is seeking.

Ms. Crawford also expressed NASAA's opposition to having a self-regulatory organization for advisory firms.

“A self-regulatory organization is inherently conflicted and is not independent,” she said.

The Financial Industry Regulatory Authority Inc. has called for bringing investment advisers under such an organization.

NASAA also will concentrate on extending fiduciary duties to all financial professionals who provide advice, and it will push for ending mandatory, industry-run arbitration for investors.

State regulators also are looking to influence the direction of financial regulatory reform “so that it works for, not against, investors,” Ms. Crawford said.

“A one-size-fits-all model of regulation is not the best model,” she said in a statement.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Wirehouse training programs are in vogue

At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Brian Block denies cooking the books at Schorsch REIT

Former CFO claims everything he did was 'appropriate' and 'correct.'

Interns will take on several roles at advisory firms this summer

College students are helping with client prep, firm visioning and long-term projects, among other duties.

10 funds with largest 3-year outflows

Even well-managed funds that have beaten the S&P 500’s 10.1% average annual gain have watched investors flee.

Wirehouse training programs are back

At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.

New military pension rules need financial advisers to step up and serve

Matching defined contribution plan expected to see more money, more need for sound advice.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print