June 5, 2012
Massachusetts Report: State Registered Advisers Oppose SRO
State securities regulators have expressed concern about the establishment of an SRO that would include state-registered investment advisers. The Massachusetts Securities Division recently posted on its website a REPORT ON THE POTENTIAL IMPACT OF THE INVESTMENT ADVISER OVERSIGHT ACT OF 2012 ON SMALL ADVISERS reporting on a survey mailed to 649 advisers registered in Massachusetts (Download Mass.Report_on_IA_Impact).
According to the report:
Small investment advisers are consistently and overwhelmingly opposed to the establishment of an SRO because of the financial impacts such a bill would have on their small business. 98% of survey respondents indicated that passage of a bill that required them to become an SRO member and pay membership fees would have a
financial impact on their ability to run their firm. 241 (69%) advisers characterized the financial impact to be “Severe” and the highest on the survey’s 1-9 scale. Advisers also indicated that they would be less likely to hire more personnel (81%) and may be forced to conduct layoffs (55%) given the additional costs the adviser would incur as a result of an SRO membership. Most significantly, approximately 146 of 353 (41%) advisers volunteered additional information in the optional comment section suggesting that they would be forced out of business if the Bill passes in its current form.
TrackBack URL for this entry:
Listed below are links to weblogs that reference Massachusetts Report: State Registered Advisers Oppose SRO: