RJ and Makay

U.S. advisors are using options markets more frequently, and those with larger assets under management (AUM) are significantly more likely to utilize these markets than peers with smaller assets under management, according to an industry report.

Of advisors with $500 million or more AUM, 94% bought or sold equity options in the past year, according to Bellomy Research Inc.’s survey of more than 600 U.S. advisors for the Options Industry Council (OIC) report “Financial Advisor Benchmark Study.” The survey also found that:

Registered representatives won't have to operate under a fiduciary standard until at least the second half of 2012, and even that might be pushing it, says Richard Ketchum, chief executive of the Financial Industry Regulatory Authority (FINRA). For that change to occur, "the SEC would have to move through an implementation phase that would register one or more SROs (self-regulatory organizations)," Ketchum explained. "That process would take a period of time.”

On January 21, the SEC made formal recommendations for brokers and advisors to be held to a uniform fiduciary standard. It also proposed that FINRA be made the SRO for some investment advisors to help improve the regulation of that profession.