Investment Advisor Association
Advisory firms would pay much higher fees under FINRA: Boston Consulting GroupPosted by RJ and Makay on Dec 16, 2011 |
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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.
Congressional legislation that authorizes one or more self-regulatory organizations to oversee registered investment advisors (RIAs) is “directionally, exactly what we want,” said Stephen Luparello, vice chairman of the Financial Industry Regulatory Authority (FINRA). Most of the cost of assuming oversight of advisors is already contained within FINRA infrastructure, according to Luparello, who heads regulatory operations at FINRA.
