Posted On: February 19, 2013

FINRA Pulls Back on Regulating Registered Investment Advisers

According to Financial Industry Regulatory Authority Chief Executive and Chairman Richard Ketchum, the SRO is pulling back from its bid to regulate Regulating Registered Investment Advisers. This move comes after FINRA spent the last couple of years lobbing to become the main regulator for RIAs.

However, according to Ketchum, in the wake of the current political climate and changes in leadership during the 2012 election, he does not expect that the House of Representative Financial Services Committee will try to revamp the way RIAs are currently regulated, which is via the Securities and Exchange Commission. For advisers that did not want FINRA overseeing them, this is good news.

However, not all of those that were against the SRO taking over RIA regulation are convinced that FINRA has completely given up. Some are worried that the regulator intends to return to the issue at a later date.

For example Investment Adviser Association executive editor David Tittsworth doesn’t believe Ketchum’s remarks are confirmation that FINRA has truly given up. He thinks that seeing as Congress may have other priorities at the moment, the SRO is choosing to focus on other issues for the time being. There are also those that believe that FINRA's pullback is good for investors. Some have questioned whether the SRO would be able to meet the current standard set by the SEC.

Investment adviser fraud costs investors money every year. Our securities law firm is here to help our clients recoup their losses.

Advisors Cheer as FINRA Drops Bid to Regulate RIAs, Financial Planning Staff, February 7, 2013


More Blog Posts:
Securities Roundup: Lawmaker Presses SEC to Tackle High-Frequency Trading, Approval of Nasdaq’s Plan to Payback FB IPO Investors is Delayed, & Less Investors Filed Securities Lawsuits Against Corporate Firms in 2012, Stockbroker Fraud Blog, February 18, 2013

Judge that Dismissed Regulators’ Claims Against Morgan Keegan to Rule on ARS Lawsuit Again After His Ruling Was Reversed on Appeal, Institutional Investor Securities Blog, November 27, 2012

Amendments Clarify FINRA’s Right to Look at Firm Records, Books, Stockbroker Fraud Blog, February 9, 2013