SEC one step closer to losing oversight of most RIAs
But will budget-crunched states do a better job?
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November 18, 2022 at 2:56 AM
Bill Winterberg
Before I moved away from Oregon this year, I built fairly good rapport with the Oregon Department of Finance and Corporate Securities, the body that regulates state-registered investment advisers.
OR DFCS is a profitable division within state government, primarily due to the registration fees collected for registered representatives conducting business with Oregon residents.
They have an appropriate number (in my opinion) of examiners on staff and conduct introductory meetings with all new state-registered RIAs within the first few months of registration. When has the SEC ever done that with new federally-registered RIAs?
Remember that the Indiana Securities Division, in response to investor complaints, investigated <a href="http://en.wikipedia.org/wiki/Marcus_Schrenker">Marcus Schrenker</a> and filed charges four days before he faked his own death in a plane crash.
I believe that state examination departments will be up to the task of monitoring and regulating advisers who manage under $100 million.
