Bachus May Soon Present Bill Opening Door for FINRA to Regulate Advisors

[the observer]

I'd seriously think about getting out of the business if FINRA gets the nod to regulate "all" investment advisers.

What I've not understood and maybe someone can help me out here is; Would FINRA want to wrest control and regulation of State regulated investment advisers as well, or just the SEC regulated advisers?

[Bradly T.]

The indie dualies appear, by FSI's position, to be lobbying for FINRA for dual registrants - only. Logically, they want ONE SRO (if any at all) to provide a singular source of compliance for the entire operation. This has less to do with supporting FINRA priorities or positions than streamlining and cost containment for members. With new state limits of $100mm AUM and dualies-under-FINRA, the SEC would transfer a significant portion of its enforcement obligation away to others. If not dually registered and managing over $100mm, the SEC should have higher inspection ratios potential. More than a few wish this genie were still in the bottle. But urgency and tone both seem to have subsided on this rather paltry and insignificant issue when taken in context with the real causes of the collapse...or perhaps, that makes us the perfect, meaningless regulatory scape goat?