Finra Oversight of Investment Advisors Could Weaken Existing Fiducuiary Standards
The House Financial Services Committee recently approved a proposed amendment to the Investor Protection Act.
The amendment has raised concern among many as it would provide the Financial Industry Regulatory Authority (Finra) to broaden its regulatory reach and cover investment advisors who are currently regulated by the SEC.
A primary concern is that Finra's relatively weak fiduciary standards would be applied to investment advisors who, at the moment, are subject to higher levels of fiduciary obligation than brokers.
The net effect would likely be a negative for financial services consumers.
Source: Investment News
