What are the primary concerns for advisors regarding the move to state-level regulation?

Many advisors find the transition to be confusing and complicated due to the varying requirements across different jurisdictions. Furthermore, industry experts anticipate that firms switching to state oversight will likely face a significantly higher frequency of audits.

How is the Financial Planning Association responding to these regulatory changes?

In response to the shifting locus of regulatory power, the Financial Planning Association (FPA) is establishing statewide lobbying organizations. These groups are intended to counter potential regulatory and tax battles that may arise as states take over oversight responsibilities.

What is the deadline for firms to complete their state registration?

Advisors impacted by the transition have until next July to register with their respective state regulatory bodies. Depending on client distribution, a firm may be required to register in as many as 14 different states if they have more than five clients in each.

Which investment advisors are affected by the transition from SEC to state oversight?

The shift to state oversight, often referred to as 'The Switch,' applies to all Registered Investment Advisors (RIAs) with $100 million or less in assets under management. It is estimated that this regulatory change will impact approximately 4,000 firms across the industry.

The biggest questions about the switch to state oversight: You tell us

RIABiz posts its first reader survey on an issue affecting a massive number of RIAs

2 min read

By Elizabeth MacBride December 7, 2010Updated: July 14, 2020

California may be the land of milk and honey, but its RIA registration bureaucracy is notoriously slow. Let us know what's happening in your state.

RIAs face state registration by next July due to SEC oversight changes.
Expect increased state audits as regulatory power shifts from SEC.
FPA establishes state lobbying groups amid growing state regulatory influence.

AI generated

Welcome to the first RIABiz reader survey.

Related· Nov 4, 2009

The big change RIAs should expect when the SEC punts to the states

We are working on another story about the shift from SEC to state oversight of all RIAs with $100 million in AUM or less, an change that, it’s estimated, will affect about 4,000 RIAs. We’ve heard from many readers that RIABiz has become an important source of information about this big power grab by the states, which is already having major repercussions. As the locus of regulatory power shifts, for instance, the Financial Planning Association is setting up state lobbying organizations. As state regulatory, tax battles loom, FPA is establishing statewide organizations to counter threat.

First things first, however. Advisors have until next July to register in their respective states (as many as 14 if you have more than five clients in each of them). So far, we’ve heard from advisors that the shift in oversight is confusing and complicated. We’d like to help you understand it better. If this change is affecting your firm, please fill out the survey below, answering as many questions as seem relevant to you. We hope your answers will help us cover up-to-the-minute developments in the 50 states. Only RIABiz staff will see your answers, but we may contact you to ask for permission to include them in a future post. Thanks, and drop me a line with any questions: elizabeth@riabiz.com.