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SEC Puts Unregistered Brokers in Crosshairs

October 2, 2017

The SEC is going after abuse of retail investors across the spectrum, broadening its scope to include individuals not registered as advisors, ThinkAdvisor writes.

Speaking at a Brookings Institution event last week, SEC chairman Jay Clayton said the agency is “trying to work on pulling a data set” for unregistered individuals defrauding investors — similar to the one the SEC and Finra have on registered reps with a history of misconduct, according to the publication. Clayton also said the SEC is reexamining the data it collects on custody and transfer agents, ThinkAdvisor writes.

But the agency has put the idea of third-party examiners of investment advisors on the back burner. The SEC chief said a self-regulatory organization to help the regulator is “not a bad idea” but not one of his current priorities, according to the publication. On the other hand, the agency is boosting the number of its own RIA exams by 30%, shifting 100 staff to its investment advisor unit, Clayton told lawmakers last week.


At the Brookings Institution’s event, meanwhile, Clayton said the SEC had witnessed various infractions in the distributed ledger technology space, according to ThinkAdvisor. Nonetheless, the SEC chairman said he perceives the technology’s value for efficiencies in accounting, record-keeping and tracking markets, the publication writes.

By Alex Padalka
  • To read the ThinkAdvisor article cited in this story, click here.