Roundtable: Modernizing SEC and FINRA regulations?

How should the SEC and FINRA modernize their regulations to better serve the interests of RIAs, broker/dealers, and individuals and family investors?

Dan Kreuter, CEO. Gladstone Group

The vast majority of RIAs want to be compliant and recognize that regulators are fellow citizens trying to protect the investing public. The regulatory agencies should have their examiners better understand the differences between wealth managers and money managers, and mom-and-pop financial advisers versus mega-firms. Currently, they appear to be viewed through the same lens by regulators. There is a tendency to focus on marginal disclosures around marketing and communications, which is a misallocation of resources. Lastly, it would be preferable to have more advanced compliance guidance, rather than making policy through enforcement actions, which sometimes appears to be the case.