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Let's Be "Frank"


Pending Legislation Means Change for Registered Investment Advisers

iStock_000016021472SmallThe Dodd-Frank Wall Street Reform and Consumer Protection Act initiatives continue to fuel the fire on certain components of legislation directly aimed at Registered Investment Advisers (RIA's). Although Dodd-Frank has those that support the initiatives and those that do not, one thing is certain...change is coming, like it or not. A couple of areas are heating up and causing significant concern within the industry:

  • As the Securities and Exchange Commission (SEC) continues to evaluate the fiduciary standard that applies to RIA's, the Department of Labor (DOL) appears to be working on a proposal that could be contrary to the direction that the SEC is heading. During a recent Securities Industry and Financial Markets Association (SIFMA) “State of the Industry” press briefing, SIFMA leadership expressed concern with the DOL's position citing that certain components could be counterproductive to the overall objective and result in operational challenges for brokers.
  • Investment adviser oversight is currently facilitated by, and the responsibility of, the SEC which has been the case for more than 60 years. The Dodd-Frank Act mandated an SEC study to determine how best to administer oversight to these RIA's. These studies have shown that the SEC currently lacks the resources to adequately examine the population of RIA's subject to SEC governance. This evaluation has led to significant debate over which option is best for the industry — create a Self Regulatory Organization (SRO) charged with governance of RIA's; allow the SEC to continue to administer oversight but consider funding to facilitate; or extend the Financial Industry Regulatory Authority's (FINRA) reach to include RIA's.

Brown Smith Wallace currently serves more than 70 financial service industry audit and tax clients, including registered investment advisers, broker-dealers, credit unions, banks and insurance companies. We stay on top of the regulations and legislative changes that affect your business so that you can focus on what's important...your clients. Our financial service team provides clients with unparalleled expertise that truly makes A Measurable DifferenceTM. For more information on ways that Brown Smith Wallace can support you and your team, please contact Lincoln Gray at 314.983.1235 or


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