FINRA
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.
The House Financial Services Committee (HFSC), led by chairman Spencer Bacchus (R-LA), introduced legislation yesterday that may lead the Financial Industry Regulatory Authority (FINRA) to become the self-regulatory organization (SRO) for retail investment advisors. In 2011, only 8% of investment advisors underwent SEC examination, compared to 58% of broker-dealers, according to an HFSC press release. The Investment Advisors Act of 1940 would be amended by the legislation to enable the creation of National Investment Advisor Associations (NIAAs). NIAAs would register with the SEC and serve under SEC oversight.
While some advisors still feel unsure or worried about compliance when they use social media, most say they are using social media platforms to build their brands and businesses, according to SourceMedia, the publisher of Financial Planning, On Wall Street and Bank Investment Consultant. 51% of nearly 900 independent, wirehouse and bank advisor survey respondents said they rely on social media for business as well as personal use.
