SEC Proposal on 'Small' RIAs Draws Support From Planning Groups

Planning organizations, including CFP Board, support the SEC’s effort to modernize its outdated definition of “small” advisory firms, but they also urge the agency to adopt an employee-based standard rather than relying solely on assets under management. In a joint comment letter filed March 13, these groups argued that the current $25 million threshold under the Regulatory Flexibility Act no longer reflects industry realities and fails to account for how firm size and staffing levels affect the burden of regulatory compliance.

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