This article from Think Advisor highlights the shrinking of Broker/Dealers and the expansion of RIAs.  The entire industry is doing more fee based advisory business, which is being driven by the DOL.  The real question that should be asked isn’t is Finra outdated, it is when will Finra start overseeing RIAs? While there are plenty of people who hope that never happens, it is just a matter of time before we start to see and hear Finra and the SEC begin discussing an SRO for RIAs.

As a result of the DOL’s fiduciary rule for IRAs, the SEC has re-energized their evaluation to create a single fiduciary standard for everyone, brokers and advisors and IRA and non-IRA accounts.  Once that happens, we will have the same standards for everyone.  Therefore, if we have one standard, doesn’t it seems logical that Finra will be the SRO to oversee everything.

If that happens, how might it impact your business?