Data & Research September 26, 2011

Advisers’ “Dream” SRO

The Self-Regulatory Organization for Independent Investment Advisers (SROIIA) is continuing its mission towards creating an SRO that meets the needs of advisers, and has completed its second round of surveys towards accomplishing this task.  
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SROIIA recently conducted a four-question survey, and received 228 responses:

1. “If you were required to join a SRO, would you prefer FINRA or a new SRO that was created specifically for investment advisers?”

  • 6% answered “FINRA”
  • 87% answered “New SRO”
  • 7% answered “Don’t Know”

2. “If you firm were required to join a SRO, would you object to joining one that held your firm to a higher fiduciary standard than the standard that would be applied by FINRA?”

  • 7% answered “Yes,” (they would object)
  • 93% answered “No,” (they would not object)

3. “If you firm were required to join a SRO, would you object to joining one that prohibited its members from engaging in principal transactions with clients?”

  • 11% answered “Yes,” (they would object)
  • 89% answered “No,” (they would not object)

4. “If you firm were required to join a SRO, would you object to joining one that prohibited its members from being paid commissions?”

  • 5% answered “Yes,” (they would object)
  • 95% answered “No,” (they would not object)

“These surveys help us get a feel for what IIAs want and their likes and dislikes; thus helping us build our organization into the partnership customizable-approach we are striving to have” says Timothy Collins, Co-CEO.

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