Boston Consulting Group
FINRA underestimates SRO costs: Boston Consulting GroupPosted by RJ and Makay on May 11, 2012 |
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Boston Consulting Group (BCG) issued a report that was released by advisory groups yesterday that refutes the Financial Industry Regulatory Authority’s (FINRA) cost estimates for the role it wants as the self-regulatory organization (SRO) for advisors. The BCG review, sponsored by several advisory associations and TD Ameritrade Institutional, says that FINRA’s April 25 cost estimate underestimates overhead costs and overestimates advisor examiner productivity.
Financial advisory firms would pay more than twice as much in fees if overseen by FINRA, as compared to fees paid to the Securities and Exchange Commission (SEC), according to a Boston Consulting Group (BCG) report. The report found that it would cost between $6 million and $8 million to prepare for additional SEC exams, and the annual cost would be between $240 million and $270 million.
Millionaire households comprised 39% of the world’s wealth in 2010, up from 37% in 2009, according to a new Boston Consulting Group survey study. 0.9% of all households globally had assets of over $1 million. 01% of households had $5 million or more in assets and represented 22% of global wealth, a 2% increase from 2009.
