California eyes renewal fee for advisers at B-Ds, RIAs

California is considering charging broker-dealer and investment advisory representatives $25 per year to cover the cost of regulating more investment advisory firms, the state's corporations commissioner, Preston DuFauchard, told InvestmentNews today.
DEC 09, 2009
California is considering charging broker-dealer and investment advisory representatives $25 per year to cover the cost of regulating more investment advisory firms, the state's corporations commissioner, Preston DuFauchard, told InvestmentNews today. California is one of the few states that do not charge an annual “renewal” fee for brokers and advisers, Mr. DuFauchard said. “We have been looking at a renewal fee, a very minimal fee, for registered reps of the broker-dealers or investment advisers,” he said. There are 267,171 broker-dealer representatives in California and 47,065 investment adviser representatives, Department of Corporations spokesman Mark Leyes wrote in an email. That would mean the state could reap nearly $7.9 million in annual income from the charge. Under financial service regulatory reform legislation being considered by the House of Representatives and draft legislation being considered by the Senate Banking Committee, states would take charge of investment advisory firms that manage less than $100 million, while the Securities and Exchange Commission would supervise advisory firms above that threshold. Currently, states supervise advisory firms managing less than $25 million. That higher threshold will lead to an increase in the number of firms that states oversee — and will likely stretch the resources of their securities regulators.

Latest News

Barred advisor forged wife’s signature on life insurance contracts, according to FINRA
Barred advisor forged wife’s signature on life insurance contracts, according to FINRA

Thrivent Investment Management Inc. in May fired Nicholas Hale, according to his BrokerCheck profile.

Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways
Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways

About 70 bank and credit union advisors move to the Raymond James platform, while a $480M New Jersey team goes independent with LPL

Tax-aware investing should expand client choices, not constrain them 
Tax-aware investing should expand client choices, not constrain them 

The best tax plan asks not only how much a client could save, but what they would have to give up to save it. 

Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis
Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis

A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.

SEC enforcement against public companies hits record low under Atkins
SEC enforcement against public companies hits record low under Atkins

New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.