Financial Advisor IQ quoted Adrienne Gurley on the possibility of the Securities and Exchange Commission (SEC) allowing state regulators to oversee an increased amount of investment advisors. According to the article, the SEC’s headcount has dropped because of cuts made to the federal workforce.
Financial Advisor IQ reported that the acting SEC chair, Mark Uyeda, recently said that “he has asked the agency's staff to evaluate whether the regulator should shift oversight of some mid-size investment advisors to state regulators.”
Offloading subsets of lower-asset investment advisors to state regulators would align with an “evolving enforcement environment, which at the federal level is shifting away from an aggressive regulatory posture,” Gurley explained.
"This feels like a signal to firms to prepare for possible shifts in registration requirements, examinations, and enforcement," she added.
Click here to access the article.