Reg BI with Gensler on board accelerates move to RIA model (ThinkAdvisor)

SEC Chairman Gary Gensler’s comments on Regulation Best Interest (Reg BI) would likely reinforce the trend of broker-dealers transitioning to the RIA model. For many years the commission-based model has been moving to the fee-based model and now Reg BI provides another reason to make that switch. Plus, Chairman Gensler has recently made it clear that he intends to enforce Reg BI to the letter of the law. Amy Lynch, FrontLine’s Founder and President, identifies the business rationale for the trend of more RIA models continuing. In addition to the obvious – the higher costs associated with Reg BI compliance – Ms. Lynch’s featured comments discuss how the advent of technology has reduced the costs for RIAs, including managing portfolios. She further notes that revenue streams for RIAs have not been squeezed to the degree they have in the broker-dealer industry. See ThinkAdvisor, “Trendspotter: Why Reg BI Will Push More BDs Into RIA Model“