To help out the SEC with the low percentage of RIA examinations, fi360 is offering to use its CEFEX process to increase the number of members that are reviewed. Though the SEC’s budget request to increase the number of examiners was included in President Obama’s FY 2015 budget, and a House bill from Rep. Maxine Waters (D-CA) would increase user fees to fund more examinations, it’s unlikely that funding for an increase in RIA exams will be forthcoming.
So fi360 argues in a letter to the SEC that outsourcing examinations to the private sector makes sense. The group, which is owned by private equity firm Bluff Point, is opposed to FINRA’s efforts to help out and is a strong proponent of requiring all advisors to work under a uniform fiduciary rule.
While the AIF and AIFA certification programs have been very popular, with more than 6,000 current designees, the CEFEX certification has yet to catch on. If fi360 were to take over SEC examinations — which opponents of the idea say would be very costly — would AIF-designated firms have an advantage?
