A favorite complaint of advisors is regulation. Most will tell you that it’s not that they disagree with the concept of regulation in theory, it’s what regulation in practice fails to accomplish. Instead of catching the bad guys, regulation merely adds layer upon layer of compliance burdens to the good guys.
One solution would be more cooperation between the good guys and their regulators on the federal level, either SEC or FINRA, or state securities regulators.
That’s why it was refreshing to hear from two compliance professionals at the Shareholders Service Group’s first annual conference in San Diego in early March. Kelli Capitano of National Compliance Services and Chris Winn of Advisor Assist both have their ears to the ground when it comes to what federal and state regulators are looking for in exams. In a session I moderated, we discussed the “big switch” from SEC to state oversight for RIAs with less than $100 million in AUM.