The Financial Industry Regulatory Authority Inc. could oversee registered investment advisers through a separate governance structure, according to Richard Brueckner, a longtime member of the self- regulatory organization's board.
In an interview, Mr. Brueckner, who is also chief executive of Pershing LLC, said that Finra could perform adviser oversight with a “separate board that would focus on ... examinations appropriate for the RIA community.”
Finra's predecessor, NASD, had a separate board to run The Nasdaq Stock Market Inc. and a separate committee to run its arbitration program, “so a separate governance model has been in place within Finra” before, he said.
Mr. Brueckner said that he wasn't speaking on behalf of Pershing and doesn't necessarily support Finra's taking control of adviser regulation.
The Securities and Exchange Commission, however, has said that it doesn't have the resources to oversee advisers, while Finra “has a strong balance sheet and enough financial strength” to handle RIA oversight, he said. SEC Chairman Mary Schapiro “has said it's not likely the SEC will ever have the resources, so it's a logical extension to have Finra [oversee advisers],” he said.
Mr. Brueckner made his comments this month at Pershing's annual conference for its correspondents and advisory firm clients in Hollywood, Fla.
E-mail Dan Jamieson at djamieson@investmentnews.com.
