Investment adviser regulation remains in flux

Jun 13, 2014 @ 12:00 am

Runtime: 1:51

RIAs don’t want to be regulated like broker-dealers and they “sure as hell” don’t want to be regulated by Finra, according to Neil Simon of the IAA. Advisers have fended off several unpopular rules, but advocates say RIAs must remain vigilant.

Video Transcript

[MUSIC] I'm, the regulatory framework for investment advisors is in flux. Most of our members would tell you, regulation is getting more complex, there's just more of it and that's where the pendulum has been swinging for a number of years. We don't want to be regulated like broker dealers. We far prefer and want to preserve the fiduciary principles based regulation of investment advisors. And we sure as hell don't want Finra, serving for the SRO for investment advisors. We wanna strengthen the SEC to do the job, and keep them as the sole and primary regulator of investment advisors. We're primarily gonna be focused on how to enhance, how to strengthen the SEC's oversight of investment advisors. The fact that SEC is inspecting only about 8% of investment advisors annually, is a problem, it's a real problem. I think it's really important for everyone in this industry, the advi, investment advisory profession, to understand the need to communicate with lawmakers. They need to understand who we are, what we do and that requires a consistent year after year, dedication of time and resources. There are all sorts of major players on Capitol Hill Land in the financial services industry. Burocarcy, insurance a the like, that are making their voices heard, both on Capitol Hill and in the regulatory agencies. If only for that reason, it's critically important that the investment advisories be heard. [MUSIC]

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