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Transition services available to RIAsPosted by RJ and Makay on Jan 17, 2012 |
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Investment advisors that manage assets between $25 million and $100 million who are switching from federal to state registration this year are facing uncertainties, particularly those that will be falling under the jurisdiction of multiple states. While some industry observers believe that state regulators will be taking an adversarial stance with the advisors, state regulators say that is not necessarily the case and urge advisors to use regulators as a resource to help with the transition.
The Securities and Exchange Commission (SEC) announced Wednesday that it had filed 146 enforcement actions against investment advisors and investment companies during the 2011 fiscal year, which ended September 30. The record number of actions represents a 30% increase from the previous fiscal year, and a jump of nearly 200% since 2002.
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.
