Mark Casady Of LPL Says An SRO Would Take Away RIAs' Edge - And That's Why He Wants It

Tuesday, May 24, 2011 06:47
Mark Casady Of LPL Says An SRO Would Take Away RIAs' Edge - And That's Why He Wants It

Tags: LPL

 It looks like the head of the biggest independent broker-dealer out there wants RIAs to adopt a self-regulatory structure in order to even the competitive playing field.

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Casady reportedly told industry bigwigs at a recent FINRA conference that "we have to have an SRO" for RIAs in order "to be sure we're even-handed."


Otherwise, he says, RIA firms have an unfair competitive advantage because their current regulatory burden under the SEC is so much lighter than what brokerage firms have to deal with under FINRA.


As the industry and Congress debate whether the SEC should keep supervision over larger registered investment advisors or, instead, whether oversight should pass to a self-regulatory organization (SRO) -- maybe FINRA, maybe not -- I've never heard the argument framed in quite that way.


Sure, it's naive to think that this is really all about getting what's best for investors. But if this is a pro-competition move, maybe the FTC should be handling it instead.



Comments (2)

If you can't beat 'em, sqash 'em.
vguettlein , May 24, 2011
That's exactly the line from the Financial Services Institute, and it continues to show how absolutely clueless the BDs are.

They think it's unfair that they have the check the box regulatory burden. The truth is that BDs like to create overpriced high margin products and sell them to the public. The "burden" exists not only because the BDs want cover to continue to sell the junk, but also if FINRA failed to add another "burden" after seeing systemic abuse of the public, their government granted authority would be in jeopardy.
bramsay , May 24, 2011

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