FINRA Chief Outlines Adviser Regulatory Regime
Richard Ketchum, FINRA’s Chairman and CEO, recently outlined FINRA’s regulatory approach to investment advisers if given that authority. First, Mr. Ketchum argued that FINRA should become the regulator for advisers because exam frequency must increase to ensure compliance and deter wrongdoing. Mr. Ketchum indicated that FINRA would set up a separate affiliate dedicated to adviser supervision and regulation. He also tried to allay fears by stating that FINRA “would have no intention to force the full suite of specific broker-dealer requirements on investment advisers.” He continued: “We don't see the necessity for extensive SRO rulemaking and believe that the extent of that authority should be fully a matter for the SEC to determine.”
OUR TAKE: Mr. Ketchum is really speaking to Congress and the SEC who will ultimately decide which regulator will supervise advisors. We doubt that he can convince advisers, many of whom grew up on the brokerage industry, that FINRA would benefit their industry.
http://www.finra.org/Newsroom/Speeches/Ketchum/P123371
Posted by Todd Cipperman at 3/23/2011 4:47 AM 
Categories: Compliance and Operations
Tags: adviser regulation finra examination
Categories: Compliance and Operations
Tags: adviser regulation finra examination
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