RIA Biz is reporting the first fissure in the solidarity of various RIA interest groups concerning the establishment of an SRO for RIAs. The Committee for the Fiduciary Standard, an influential group that includes some of the most respected advisors and service providers in the industry, is now endorsing an SRO being put together by an investor advocate attorney and some of his law students. Although the Committee still advocates the SEC as primary regulator, the group apparently is beginning to think that an SRO is inevitable. As such, the Committee is endorsing the Self-Regulatory Organization for Independent Investment Advisers (SROIIA) as a backup plan. This may well be a pre-emptive move to find an alternative solution to FINRA, which none of the RIA industry groups prefer as an SRO.
Other industry groups such as the Investment Advisers Association, CFP Board of Standards, the National Association of Personal Financial Advisors and the Financial Planning Association are still opposed to an SRO.