SEC to boost Finra oversight as self-regulator takes bigger role in broker exams

March 30, 2016

Agency to lean more heavily on Finra as SEC shifts some of its own resources toward registered investment advisers

Mar 29, 2016 @ 1:28 pm | By Mark Schoeff Jr. | Investment News

A move by the Securities and Exchange Commission to strengthen oversight of investment advisers could also lead to greater scrutiny of Finra.

Earlier this year, the SEC announced it would boost the number of investment adviser examiners by almost 20% — from 530 to 630. The increase would be achieved by shifting broker-dealer examiners to the investment adviser exam staff and by using part of its fiscal 2016 budget increase to hire more RIA examiners.

Following the reallocation of examination resources, the SEC will lean even more on the Financial Industry Regulatory Authority Inc. to oversee about 4,000 brokerages.

That means the SEC, which already must approve Finra rules, will be keeping a closer eye on the self-regulatory organization, SEC Chairwoman Mary Jo White told lawmakers at a hearing last week.

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Second Annual Blue Vault Broker Dealer Educational Summit 2016
Broker Dealer Educational Summit 2016
April 14, 2016

The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.