Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the Securities and Exchange Commission (SEC) this week adopted new rules that will lift the amount of regulatory AUM below which an investment adviser can be considered “small” (for the purposes of evaluating the economic impact of new regulations) from $25 million to $1 billion, which will cover 75% of RIAs under this new definition and is likely to provide relief for relatively smaller firms by forcing the SEC to more carefully consider how new regulatory proposals would impact the overwhelming majority of RIAs that don’t even have the size capacity for a dedicated compliance role.
Also in industry news this week:
- Data from Cerulli Associates finds that firms looking to move ‘upmarket’ are frequently outsourcing specialized services (e.g., trust and estate planning) while leaning into an ensemble team model to attract and serve wealthier clients
- The IRS has established a new correction program for fixing certain IRA errors, though the number of available errors is limited and requesting relief will come at a cost
