NEW YORK, NY--(Marketwire - June 29, 2010) - The financial reform bill which passed through the House-Senate conference committee Friday will require that 4200 RIAs now registered with the SEC shift to state regulation. According to the bill which is expected to pass both Congress and the Senate this week and be signed by the President before July 4, the threshold for state oversight will now move from $25 million in assets under management to $100 million. Most firms with less than $100 million of assets under management will now have to register with the state(s) in which they operate. A firm with under $100 million but registered/notice filed in 15 states or more will stay under SEC jurisdiction.
"We have been in contact with regulators in every state and are planning for the sweeping changes that will result from this legislation," said Zachary Gronich, CEO of RIA In A Box, a consulting business aimed at registration and ongoing compliance for registered investment advisory firms at both the state and SEC levels. "This is a huge transition for thousands of RIAs and we recognize it is essential to make the move from SEC to state regulation procedures as smooth as possible."
The new regulation gives the states authority and oversight over RIAs who previously had been often overlooked by the SEC. According to Denise Voigt Crawford, Texas Securities Commissioner and president of the North American Securities Administrators Association, the states can be more effective in managing the smaller firms.
In fiscal year 2009, the SEC examined only ten percent of investment advisors. "The SEC simply could not review very many of these 4200 RIAs that now lie in the $25 million to $100 million range," Gronich said. "These RIAs now must transition to the states and prepare for closer scrutiny under the new law. And it's important to get started sooner rather than later to shift these registrations. Once everyone gets on board, there could be some serious bottlenecks and the risk of being in a state of limbo is one everyone should avoid."
RIA In A Box has new registration plans for RIAs needing to switch from SEC to state oversight. For more information, visit http://www.riainabox.com/sec.html
About RIA In A Box
RIA In A Box is a consulting business aimed at registration and ongoing compliance for registered investment advisory firms at both the state and SEC levels. Since its founding by Zachary Gronich, PFS, in 2005, RIA IN A BOX has helped over 830 advisory firms get registered quickly and correctly the first time. RIA In A Box works with all 50 states, Washington, DC, and the SEC. The firm is headquartered in Manhattan. For more information, visit www.riainabox.com or call (866) 611-7638.
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