This is Richard Ketchum’s second appearance on the IA 25. Read his extended profile from 2011 here. Click here to view the complete list and Special Report schedule for extended profiles for each of the 2013 IA 25 honorees.
It’s no secret that investment advisors are opposed to the Financial Industry Regulatory Authority becoming the self-regulatory organization that steps in to examine them—and, at least for the near term, it looks as though their wish has been granted.
As Richard Ketchum, FINRA’s CEO, said in a recent email exchange with IA, “given the lack of consensus on the Hill” regarding an SRO for advisors, FINRA “is not pursuing legislation in either the House or Senate at this time.”
While Ketchum said he would support allowing the Securities and Exchange Commission to assess user fees to boost advisor exams “if it becomes an achievable solution,” he doesn’t see a consensus among lawmakers to move forward with that option either.
Rep. Maxine Waters, D-Calif., ranking member on the House Financial Services Committee, re-introduced her user fees bill in late April.
However, Ketchum told IA that FINRA “continues to believe that the current levels of investment advisor oversight and examinations are unacceptable and a risk to investors, and that this significant gap in investor protection needs to be addressed.” It’s undeniable, he said in his email, “that proper and timely oversight of investment advisors needs to be put in place sooner rather than later.”