RJ and Makay

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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.

Financial Advisor magazine has released their findings from their 2010 RIA survey which 456 RIA firms participated. According to the reported results these RIAs saw their total assets balloon 23.3% in 2009. 50 of the firms reported a 50% growth or more and 13 firms reported a 100% asset growth or more. Mean assets per client grew by more than 11%.

The number of clients grew as well. The average number of clients among survey participants climbed more than 11%. 129 firms logged growth of 10% or more in client relationships, 70 firms reported a 20% or more increase and 19 RIAs experienced growth of 50% or more.

71 RIAs report having over $1 billion in AUM

73 RIAs report having between $500 million and a billion in AUM