Will the move toward a common fiduciary standard for all advisors under new authority granted to the SEC result in a move toward a common regulator as well? It seems that if FINRA Chief Executive Richard Ketchum has his way, the answer would be yes. While supporting a common fiduciary standard for RIAs and registered reps, Ketchum noted recently that RIAs are not being examined regularly and vigorously implied that FINRA could do the job.
Before FINRA takes over, the SEC probably would have to act on the common fiduciary standard, which Dodd-Frank allows but does not require. Even then, there are legions of lobbyists and interest groups that would oppose the idea of FINRA having oversight of all advisors. Most elite plan advisors in the small and mid-market might not be affected, but many plan advisors are rethinking whether they need to continue to maintain their FINRA licenses. This may become a moot point if FINRA has authority over RIAs.
