Finra could add board to oversee RIAs: Pershing’s Brueckner
The Financial Industry Regulatory Authority Inc. could oversee registered investment advisers through a separate governance structure, according to Richard Brueckner, a longtime member of the self-regulatory organization's board.
The Financial Industry Regulatory Authority Inc. could oversee registered investment advisers through a separate governance structure, according to Richard Brueckner, a longtime member of the self-regulatory organization’s board.
In an interview, Mr. Brueckner, the chief executive of Pershing LLC, told InvestmentNews that Finra could perform adviser oversight with a “separate board that would focus on … examinations appropriate for the RIA community.”
Finra’s predecessor, the NASD, had a separate board to run the Nasdaq Stock Market and a separate committee to run its arbitration program, “so a separate governance model has been in place within Finra” before, Mr. Brueckner said.
He stressed he was not speaking for Pershing, nor did he necessarily support Finra taking control of adviser regulation.
“If the SEC can do it, fine,” he said.
But the Securities and Exchange Commission has admitted it doesn’t have the resources to oversee advisers, while Finra “has a strong balance sheet and enough financial strength” to handle RIA oversight, Mr. Brueckner said.
SEC Chairman Mary Schapiro “has said it’s not likely the SEC will ever have the resources, so it’s a logical extension to have Finra [oversee advisers],” Mr. Brueckner added.
Mr. Brueckner offered his comments last week during Pershing’s annual conference for its correspondents and advisory firm clients in Hollywood, Fla.
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