Threshold Change in the Dodd-Frank Law
By Cale Smith
As per this summary, the threshold for RIAs that will be required to register with the SEC was raised in the recently passed Dodd-Frank Act from the current $30M in AUM to $100M, with a few exceptions.
What’s that mean for Spoke Fund® firms?
Leaving aside the potential increase in additional state registration costs, it sounds like it will shift more than 4,000 (out of around 11,500) SEC registered investment advisors to state oversight. And I suppose that either means the time between potential audits is either going to increase quite a bit…or the auditors are going to show up overworked and ornery.
Probably best to prepare for the latter, eh?
