FINRA Bids to Become RIA RegulatorPosted October 4th, 2011
Advisors, get ready to kiss the SEC goodbye. FINRA is waiting in the wings, ready to take over direct oversight of Registered Investment Advisers (RIAs). FINRA CEO Richard Ketchum has been hinting for a couple of years now that his organization stands ready to take on the role of RIA SRO. It looks like the time for thinly veiled hints is over. Now Ketchum is coming right out and asking Congress for the job.
Ketchum testified on September 13 before the House Financial Services Capital Markets Subcommittee’s hearing on draft legislation that would appoint one or more self-regulatory organizations (SROs) to oversee RIAs.
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For previous coverage of the debate over whether to appoint an RIA SRO, see FINRA: Taking the “Self” Out of Self-Regulatory Organization (CC 11-151), FINRA Sets Regulatory Sights on Structured Products (CC 11-130), and FINRA Positions Itself to Oversee Advisers (CC 10-99).