Now that the Dodd-Frank law has passed, the transition period is just beginning. Financial advisors with under $100 Million assets under management by July 2011 must transition their registration with the SEC to their state jurisdiction. However, during the transition, you could be subject to SEC and state examinations.
In order to assure a smooth transition, state regulators can and will examine any firms producing under $100 Million as they choose. The SEC will continue with its same examination process until the transition occurs. If any advisor has gone through an SEC examination, they know all too well the tedious process. It will be unfortunate for some firms to have to go through this process twice within eight months. The whole purpose for these changes was to offload work from the SEC.