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.
JUL 30, 2010
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.

Latest News

Retirement plan defaults leave key participant decisions unresolved
Retirement plan defaults leave key participant decisions unresolved

New Allspring research finds 401(k) participants want guidance on income and rollovers, not just portfolio automation.

Global equity release market set to triple, with US leading growth
Global equity release market set to triple, with US leading growth

Aging homeowners hold record housing wealth - but most advisors still aren't bringing it into retirement plans

Retiree alleges advisor withheld $600K through real estate LLC web
Retiree alleges advisor withheld $600K through real estate LLC web

$1.7M invested from an inheritance. Then the phone went dead.

SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception
SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception

The pre-IPO platform sold $430M in units while allegedly rigging prices behind the scenes.

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

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.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor