Why so few breakaways? Too much regulation, says Pershing exec

Dan Jamieson | Investment News, June 2011

Summary: Oppressive regulation is having an impact on the number of breakaway advisers, according to Mark Tibergien, president of Pershing Advisor Solutions LLC. The challenges are causing advisory firms to consider merging with similar firms to ease compliance and operational burdens, he added. "Exams are focused on a process and the people coming in to do exams are not knowledgeable and informed." Tibergien said.

These are small businesses with finite resources. Regulation is really becoming a problem for [this segment] of the industry that is trying to grow.”

Mark Tibergien

Our Commentary

While exam reform may be a key initiative of FINRA's, as stated in the article, FINRA and the SEC are challenged to keep up with the demands of regulatory exams. It remains to be seen how the states deal with the new inflow of advisors to oversee.

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