Registration of Investment Advisers

Suddenly there are more questions about the registration and regulation of investment advisers. My column, Registration and Regulation of investment advisers answers most of them. It is online at SECLaw.com here.

FINRA's Ketchum Acknowledges Lack of Confidence, Calls for More Regulation

He references the erosion of investor confidence after the market collapse and the arrest of Madoff, causing some to wonder, "given his status as a respected veteran of the securities industry, many investors were left to wonder if he was truly an outlier, or emblematic of how the industry operates."

Interesting comment from a long term FINRA insider and the now-CEO of one of the requlators who let that fraud go on under their noses for decades.

Does Mr. Ketchum fall on his sword and resign? No. Incredibly he calls for more regulation, and pushes again to gain regulatory control over investment advisors.

FINRA - Remarks by Chairman and CEO Rick Ketchum From the Exchequer Club

RIA Regulation Expected to Increase RIA Costs by 20%

It is not clear how this was calculated, but an increase in compliance costs because of new regulation is nearly a given.

RIAs need to start looking for new regulatory and compliance personnel...and some attorneys as well. Remember that the SEC's aborted attempt to regulate hedge fund managers significantly boosted the compensation of experience compliance officers.

Expect more of the same in the coming months.

http://before-you-invest.com/sec-finra-might-coordinate-efforts-study-forecasts/