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Advisors Fear Expanded Role by FINRA

Some advisors say they fear a new FINRA arbitration program for Registered Investment Advisors may allow the regulator to expand its regulatory clout beyond broker dealers, reports the Wall Street Journal.

FINRA recently announced that it would offer arbitration services, much like it does for disputes with broker-dealers. Yet some advisors, including Jeffery Lippens, president of Seattle based Garde Capital, says advisors are seeking to move away from the broker-dealer model. Having FINRA provide arbitration services, however, may result in the regulatory organization lumping advisors in with brokers from a regulatory standpoint.

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