For the last several years we have repeatedly heard about successful advisors leaving their Broker/Dealer and “breaking away” to become an RIA.  There are many different and personal reasons advisors choose to break away.  However, there are two benefits that have been applicable to just about everyone.  The first has been a higher payout than working through a B/D and the second has been less compliance headaches (and oversight).  Both of those new seem to be changing.

The DOL’s rules begin phasing in next April and has been dominating the press.  While there are clearly aspects of the DOL that will impact RIAs, for the most part it requires more significant changes for B/Ds.  As I have mentioned in the past, on the heels of the DOL will be other sweeping changes initiated by the SEC.  These requirements will likely have a much greater impact on RIAs compared to previous rules and will likely decrease some of the economic and compliance benefits that RIAs have enjoyed.

Below is a link pasted to an article published in that provides an update on some regulatory changes the SEC is focused on for RIAs.


Reposted from Think Advisor    READ THE ENTIRE ARTICLE HERE