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FINRA No Longer Fighting to Regulate Advisors


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Although FINRA isn’t pleased with their recent decision, advisors are happy that the regulatory agency is no longer trying to regulate them.  According to Financial Planning’s “Advisors Cheer as FINRA Drops Bid to Regulate RIAs,” FINRA will no longer be campaigning to be the regulatory force for registered investment advisors.  FINRA’s chairman and CEO, Richard Ketchum, said that the company didn’t want to fight a losing battle anymore.  Between the $5 million they have spent lobbying over the past four years and political changes following the 2012 elections, the regulatory agency is giving up on this quest, at least for now.

Advisors seem to be in overwhelming support of the SEC maintaining its regulatory authority over them, versus FINRA taking over.  Other financial agencies are also in opposition of FINRA’s bid to regulate RIAs.  NAPFA’s CEO Ellen Turf is also a member of the Financial Planning Coalition.  Even though FINRA has stopped lobbying now for regulatory control, Turf says that the Coalition will not stop fighting against this regulation change happening.  They believe that FINRA could start up their campaigning again at any time.  The Investment Adviser Association seems to feel the same way as the Coalition and wishes that FINRA had dropped the idea altogether.  Stay tuned to our blog to see if FINRA restarts their campaign to become the regulatory agency for RIAs.

Written by Rachel Summit

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