SEC to raise RIA minimums

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Squash1's picture
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Joined: 2008-11-19

Heard today about some article out regarding the SEC raising minimum standards to $100M instead of the current $25M.... that is a huge increase.

CALI123's picture
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Joined: 2009-01-30

Yeah, that has been going around for a few months. The main issue seems to be if the states can handle the extra RIAs. I liked it better when I was a state vs sec

SBmss's picture
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Joined: 2006-11-17

That would be great, IMO. I imagine it would be preferable to work at the state level, rather than the federal level.

aeromaks's picture
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Joined: 2007-01-13

wow. not a bad move... I dontk now. I am in process of being registered with the state, and my communication with them has been good, and they have been responsive.  any advantages to being SEC registered?the only issue i can see is having to register with all of the other states... 5 clients, here, 5 clients there... adds up

georgicaclose's picture
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Joined: 2006-11-16

SBmss wrote:That would be great, IMO. I imagine it would be preferable to work at the state level, rather than the federal level.
Not if you're registered in multiple states.  It will be a bureaucratic nightmare.  Many states have very different, contradictory laws when it comes to regulating RIAs.  This will be a boon for RIA compliance consultants, lawyers and state employees who will be hired to man the regulatory offices.  It will be a massive headache for RIAs under $100 million.

CALI123's picture
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Joined: 2009-01-30

Not sure if the rules have changed, but when I was state registered, I had 7 states. All the rules defaulted to my home state. However, I did have to get a few letters written from my home state, stating that's the way my state does it. I could see it being a nightmare if you have offices in more than one state.

SBmss's picture
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Joined: 2006-11-17

georgicaclose wrote:
SBmss wrote:That would be great, IMO. I imagine it would be preferable to work at the state level, rather than the federal level.
Not if you're registered in multiple states.  It will be a bureaucratic nightmare.  Many states have very different, contradictory laws when it comes to regulating RIAs.  This will be a boon for RIA compliance consultants, lawyers and state employees who will be hired to man the regulatory offices.  It will be a massive headache for RIAs under $100 million.I live in TX with more than an abundance of prospects, so I'm not too worried about having to register in multiple states.  I guess it will be interesting to see if the new wrinkle pans out or not.I do have a couple of clients outside of the state, but I wouldn't sweat leaving them behind when I go RIA if it was going to cause a huge headache. 

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