Monday, 04 May 2020 14:58

The SEC Says You Can’t Call Yourself an “Advisor”

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(New York)

An update to the SEC’s FAQs page has made something abundantly obvious—the title of “advisor” or “adviser” is about to get a lot more contentious. As part of its new Reg BI package, the SEC is bringing in additional rules around the use of titles. Regarding “advisor”, which is completely ubiquitous, the new rules are pretty clear: you cannot call yourself an “advisor” or “adviser” unless you are registered as an investment advisor. Another important note on this, according to Barron’s, “Broker-dealers that are affiliated with RIAs are generally prohibited from using the terms”.

FINSUM: This is a huge disruption to the lingua franca of the industry, but a big boon to investment advisors. Makes us wonder how much the public will actually care.

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