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Moraen View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 12:50pm
This shouldn't bother you until you get to $100 million.  By then it won't matter.  Just keep firing clients to keep it under $100 mil.

Doesn't seem like it affects State RIA's.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 12:52pm

I wonder where the states are on this.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 12:54pm
Originally posted by Moraen Moraen wrote:

This shouldn't bother you until you get to $100 million.  By then it won't matter.  Just keep firing clients to keep it under $100 mil.

Doesn't seem like it affects State RIA's.
 
I read it that RIA's UNDER 100mm AUM would fall into FINRA's crosshairs, and that 100mm+ firms would stay under SEC.  Am I reading that wrong?  Does this only apply to hybrid firms?
 
It also doesn't mention where the states are on this.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 12:56pm
"The SEC currently oversees 11,888 registered investment advisors, according to the report, but it’s shifting oversight of a chunk of them to FINRA. Soon, the SEC will just oversee RIAs with $100 million or more in assets, all 8,538 of them, while those with less will be policed by the self-regulatory organization."
"I am moving June 2018" - Chief, 08/03/2016

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Post Options Post Options   Thanks (0) Thanks(0)   Quote RIArules Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 12:58pm
Originally posted by B24 B24 wrote:

Originally posted by Moraen Moraen wrote:

This shouldn't bother you until you get to $100 million.  By then it won't matter.  Just keep firing clients to keep it under $100 mil.

Doesn't seem like it affects State RIA's.
 
I read it that RIA's UNDER 100mm AUM would fall into FINRA's crosshairs, and that 100mm+ firms would stay under SEC.  Am I reading that wrong?  Does this only apply to hybrid firms?
 
It also doesn't mention where the states are on this.
Yep.  It also mentions a new fee regimen.  Remember, just because we are State registered, it doesn't mean that we don't ultimately fall under SEC supervision, at least the way I remember reading that tidbit several months ago.  I'm pretty sure most states would jump at the chance to punt supervision to a SRO.  At a minimum, it looks like you and I made pretty good decision to go fee only, huh?
We may "rob you slowly," but you're not going to see that shit.

Edward Jones Newb, Circa September 2016
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:03pm
Hell yeah.  WTF?!

I read it wrong for sure.  Jesus.  I'm calling John up to see where they are on this.  They just added five examiners this year, but with the state deficit, my guess is the Sec. of State here will jump all over it.

Shit.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote RIArules Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:04pm
"FINRA was, of course, delighted by the SEC’s endorsement."
 
I'm sure they are licking their lips.
 
Wet, where the hell are you when we need you?
We may "rob you slowly," but you're not going to see that shit.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:30pm
Originally posted by RIArules RIArules wrote:

Originally posted by B24 B24 wrote:

Originally posted by Moraen Moraen wrote:

This shouldn't bother you until you get to $100 million.  By then it won't matter.  Just keep firing clients to keep it under $100 mil.

Doesn't seem like it affects State RIA's.
 
I read it that RIA's UNDER 100mm AUM would fall into FINRA's crosshairs, and that 100mm+ firms would stay under SEC.  Am I reading that wrong?  Does this only apply to hybrid firms?
 
It also doesn't mention where the states are on this.
Yep.  It also mentions a new fee regimen.  Remember, just because we are State registered, it doesn't mean that we don't ultimately fall under SEC supervision, at least the way I remember reading that tidbit several months ago.  I'm pretty sure most states would jump at the chance to punt supervision to a SRO.  At a minimum, it looks like you and I made pretty good decision to go fee only, huh?
 
I think you're missing my point.  I'm saying, that as an RIA, unless you have 100mm+ AUM, you would soon fall under the oversight of FINRA.  Not what I want.  I'm perfectly content being tucked in under my state Dept of Banking.
"I am moving June 2018" - Chief, 08/03/2016

"If Bellicheat pulls that rabbit out of his a$$ with this kid at quarterback, I'll personally kiss his ring." - Unknown, 09/20/2016
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Indyone Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:36pm
So, if true, this appears to eliminate one of the main benefits of going the RIA route,m correct?  Will any of you convert to an IAR if this goes through?
"Independence is like the Berlin Wall. People are only jumping in one direction." - Philip Palaveev - November 2005. "You are never free...unless you are independent..." - Indyone - May 2005.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote RIArules Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:36pm
No, B.  I hear you loud and clear.  FINRA gets its walking orders from those that would love nothing more than to absorb us back into the collective, Borg style.
We may "rob you slowly," but you're not going to see that shit.

Edward Jones Newb, Circa September 2016
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:40pm
Originally posted by Indyone Indyone wrote:

So, if true, this appears to eliminate one of the main benefits of going the RIA route,m correct?  Will any of you convert to an IAR if this goes through?


It eliminates THE main reason for going RIA.  Do you think FINRA will create another set of rules for us to follow?  No, they'll just port over their bullshit rules from the B/D side and regulate the fuck out of us and probably charge us an arm and a leg to do it.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote RIArules Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 1:46pm
The comments at the bottom of the article are starting to heat up...
We may "rob you slowly," but you're not going to see that shit.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Indyone Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 2:11pm
From the outside looking in, this pisses ME off.  You guys that have chosen the RIA route have consciously said that you will forgo the commission route to avoid FINRA regulation and now FINRA is going to step in and regulate?!!!  That sucks beyond the pale.  At that point, the only possible reason I can see to stay the course as an RIA is a few extra percentage points in retained fees and even those are partially eaten up by ticket charges.  One has to wonder if this isn't a move to push many RIA's into a B/D association.  If you are regulated by FINRA, but not under a B/D, will FINRA just bill you for services?
"Independence is like the Berlin Wall. People are only jumping in one direction." - Philip Palaveev - November 2005. "You are never free...unless you are independent..." - Indyone - May 2005.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 3:22pm
I think the SEC is just over-burdened.  Unfortunately, they are a federal agency, and you know how that goes.  FINRA is an SRO, and are basically a for-profit company.  They can just hire more agents, charge more, whatever.  Granted, their own members sit on the Board, but still.
 
The SEC is a joke because they are a typical government beauracratic agency that doesn't have enough resources.  FINRA is a joke because they are a joke.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 3:23pm
BTW, it doesn't changte certain things.  I still don't have to answer to a B/D, and have more control over my costs.
"I am moving June 2018" - Chief, 08/03/2016

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 3:38pm
Originally posted by B24 B24 wrote:

BTW, it doesn't changte certain things.  I still don't have to answer to a B/D, and have more control over my costs.


Why does it matter if you don't have to answer to a B/D if the result is the same from a "what you can do" standpoint?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 4:05pm
Originally posted by Moraen Moraen wrote:

Originally posted by B24 B24 wrote:

BTW, it doesn't changte certain things.  I still don't have to answer to a B/D, and have more control over my costs.


Why does it matter if you don't have to answer to a B/D if the result is the same from a "what you can do" standpoint?
 
I guess that's true, too.  But I can't imagine FINRA now making every single small RIA firm pass marketing literature by them.  That would just be a distaster for me.  I have built my whole marketing program on social networking, e-mail marketing, etc.  NOt sure what I would do if I had to turn around and get every freakin Tweet approved in advance.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PWA Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 4:11pm
Originally posted by B24 B24 wrote:

Originally posted by Moraen Moraen wrote:

Originally posted by B24 B24 wrote:

BTW, it doesn't changte certain things.  I still don't have to answer to a B/D, and have more control over my costs.


Why does it matter if you don't have to answer to a B/D if the result is the same from a "what you can do" standpoint?
 
I guess that's true, too.  But I can't imagine FINRA now making every single small RIA firm pass marketing literature by them.  That would just be a distaster for me.  I have built my whole marketing program on social networking, e-mail marketing, etc.  NOt sure what I would do if I had to turn around and get every freakin Tweet approved in advance.


EXACTLY! 

That is one of the biggest, if not the very biggest, advantages of going RIA....not watering down my marketing approach to meet the lowest-common-denominator/shithead advisor. 

I feel like my hands, legs and brain are shackled by my B/D, and it's primarily b/c of FINRA regs.  If they take over for the SEC with RIA's, I imagine the comment above is right....they wouldn't bother creating all new guidelines for RIAs. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 4:21pm
Originally posted by B24 B24 wrote:

Originally posted by Moraen Moraen wrote:

Originally posted by B24 B24 wrote:

BTW, it doesn't changte certain things.  I still don't have to answer to a B/D, and have more control over my costs.


Why does it matter if you don't have to answer to a B/D if the result is the same from a "what you can do" standpoint?
 
I guess that's true, too.  But I can't imagine FINRA now making every single small RIA firm pass marketing literature by them.  That would just be a distaster for me.  I have built my whole marketing program on social networking, e-mail marketing, etc.  NOt sure what I would do if I had to turn around and get every freakin Tweet approved in advance.


That's my point B - every tweet.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PWA Quote  Post ReplyReply Direct Link To This Post Posted: Jan/20/2011 at 5:08pm
From a well known (around here) compliance contact: 

Regarding the FINRA thing, the SEC isn't endorsing FINRA overseeing those RIAs; the endorsement was for RIAs that large to just start paying for their own audits (instead of them being free).  Which, in my opinion, is much better than being under FINRA.  

No one I know in the industry thinks the SEC will hand control to FINRA for anything except dually registered entities.

Obviously it's not written in stone, but everyone I've talked to
the last couple days thinks they'll go with the "making you pay for your own
audit."

Trust me, they're well aware how awful FINRA is.


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