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There has been a “rumble” since January when the SEC announced that FINRA would soon be regulating RIA’s and fiduciary standards would apply to broker-dealers.

Most of the RIA’s seem pleased about a uniform standard of conduct, but cautionary about the prospect of oversight by FINRA. Currently under regulation by the SEC, if their assets top $25 million, they fear an over regulatory burden (endless rules and paperwork), and would prefer a self-regulatory organization (SRO) and this may just happen. The battle will go to Congress.

For an in depth look at the pros and cons, see the link below, “The Tradeoff” by Larry Light for Financial Planning.

https://www.financial-planning.com/fp_issues/2011_3/the-tradeoff-2671696-1.html