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SEC or FINRA? No Contest
June 18, 2012
A sampling of registered investment advisers ("RIAs") were asked in a survey to choose their poison: (i) be regulated by the SEC, but pay a user fee to finance the commission's cost of examinations; (ii) be regulated by FINRA and/or another SRO, with no additional fees.
No contest which one advisers chose. Respondents willing to pay user fee to commission to avoid SRO oversight. Surprised?
Among the 293 RIAs who responded to the Investment News survey conducted last week, the majority of investment advisers want to see the SEC charge user fees for adviser examinations, and reject the idea of adviser oversight by an SRO or a more expansive FINRA.
Those supporting vs. those against user fees: the vote was 58.7% vs. 41.3%. One year ago, just 27.8% of the 335 RIAs polled supported the user fee approach.
Those supporting the SRO-approach dropped to to 31.4% of advisers, down from 51.5% last year.
If it were to come down to FINRA regulating just those advisers that are dually-registered as brokers, 74.7% of the sample said that they would oppose having FINRA regulate them Last year, in answer to the same question, 57.7% said they opposed regulation by FINRA.
For further details, go to [Investment News, 6/15/12].

