Regulation

The aim is to maintain consistency in imposing sanctions for similar offenses.

While by law the Federal Reserve Board must worry about price stability and unemployment, Chairman Ben Bernanke appears to have charted a third mandate for the central bank: financial stability.

The brokerage industry wants simpler language and other modifications.

State regulators may frown on discounting fees, if you are tying them to activity level.

Advisors be forewarned: your small business clients are more likely to be audited next year. The IRS is beefing up its ranks of auditors and doing more audits.

To become the industry’s SRO, FINRA estimates it will cost roughly 15 times less in start-up costs than estimates in a study commissioned by the Financial Planning Coalition, which includes CFP Board, FPA and NAPFA.

Is the brokerage industry really the safer advisory alternative for consumers? Bob Veres is dubious.

“I think this would absolutely impact all of our small business owners,” said Karen Nystrom, manager of public policy and advocacy with NAPFA. “We agree that more oversight is needed but where we differ is the most cost effective way to get there.”

The Investment Adviser Oversight Act of 2012 is meant to address what proponents say is a serious gap in investor protection. Sure enough, industry groups from all side are weighing in on whether the idea will help or hinder the profession.

In a move expected to draw the ire of some advisors, House Financial Services Committee Chairman Spencer Bachus (R-Ala) introduced legislation in the house Wednesday that could clear the way for FINRA to become the self-regulatory organization for retail investment advisors.