FSI supports self-regulator for advisers

The Financial Services Institute Inc. is now clamoring for a self-regulatory organization to oversee investment advisers.
DEC 16, 2009
The Financial Services Institute Inc. is now clamoring for a self-regulatory organization to oversee investment advisers. “FSI supports a self-funded industry-informed regulator for investment advisers,” FSI general counsel and director of government affairs David Bellaire said in an interview last week. “We believe that should be a separate entity” from the Securities and Exchange Commission, though the adviser SRO should be supervised by the SEC, he said. Mr. Bellaire, whose organization represents about 120 broker-dealers, stopped short of endorsing the Financial Industry Regulatory Authority Inc. as the SRO for advisers, as has been suggested by some in recent months. “No one's really laid out a plan for how they would take on that role,” he said. Advisers' groups strongly oppose setting up a separate SRO, fearing that Finra would become their regulator. They argue that Finra is better suited to regulate the brokerage industry, which comes under different regulations than investment advisory firms. The Financial Planning Coalition, which comprises the Certified Financial Planner Board of Standards Inc., the Financial Planning Association and the National Association of Personal Financial Advisors, has called for creating a separate professional regulatory organization to oversee financial planners and financial planning. About 120 representatives of dually registered broker-dealers and investment advisers represented by the FSI lobbied members of Congress during a recent Washington meeting on the SRO issue, Mr. Bellaire said. Draft legislation released Oct. 1 by Rep. Paul Kanjorski, D-Pa., chairman of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, calls for imposing new fees on investment advisory firms to cover the cost of SEC inspections. The FSI opposes that, Mr. Bellaire said. “The SEC's got too much on their plate. What we need is a separate, distinct entity that can focus on investment adviser supervision, exams and enforcement,” Mr. Bellaire said. E-mail Sara Hansard at [email protected].

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.