Meyer Wilson attorney Courtney Werning is participating in the 2025 PIABA Congressional Hill Day, an annual event dedicated to addressing critical investor protection issues. Ms. Werning will be presenting at the Mid-Year Meeting a day before the Hill Day, on March 10th, and will focus on the topic, “RIAs Have to Supervise Too!”—a discussion highlighting the lack of explicit regulatory requirements for Registered Investment Advisers (RIAs) in supervision, despite their legal obligation to oversee financial activities.
The Need for Stronger Supervision in the RIA Space
Unlike brokerage firms, which are subject to FINRA’s strict supervision rules, RIAs do not have clear regulatory guidelines outlining their supervisory duties. However, they are still responsible for ensuring their financial professionals adhere to compliance standards. Key questions regarding supervision being discussed at the PIABA Hill Day include:
- What are the sources of supervisory obligations for RIAs?
- How do state laws and regulations influence supervision requirements?
- Are there legal causes of action available when RIAs fail to supervise?
- What role do federal statutes play in shaping RIA supervision?
Without structured oversight, investors may face risks due to inadequate supervision by RIAs. Strengthening regulatory frameworks can help ensure investors are better protected from financial misconduct.
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Addressing Arbitration Fairness for Investors
A major issue at 2025 PIABA Hill Day is the unfair arbitration system imposed on investors. Currently, many RIAs require clients to sign arbitration agreements that:
- Force investors into expensive arbitration forums that make seeking justice cost-prohibitive.
- Require investors to travel significant distances for arbitration proceedings.
- Contain clauses that attempt to shield RIAs from liability altogether.
Investor advocates, including PIABA and Meyer Wilson, are calling for reforms to ensure RIAs are subject to arbitration forums that offer fairness and accessibility, similar to the FINRA arbitration system. By holding RIAs accountable in a more equitable manner, investors will have a better chance of recovering losses from misconduct.
Protecting Investors from Fraud and Unpaid Awards
Another critical issue being addressed at Hill Day is the increasing prevalence of third-party fraud and the failure of financial professionals to compensate harmed investors.
- Third-Party Fraud: Investors, particularly elderly Americans, lose over $10 billion annually to scams and fraudulent schemes. PIABA advocates like Ms. Werning are pushing for the SEC and FINRA to issue clearer rules, mandate anti-fraud training, and improve oversight to prevent investment fraud.
- Unpaid Arbitration Awards: A significant percentage of investors who win arbitration cases against broker-dealers and investment advisers never receive their awarded compensation. Nearly 24% of arbitration awards against broker-dealers go unpaid, and there is no SEC data on unpaid awards in RIA arbitration cases. A proposed solution is requiring all financial professionals to carry insurance coverage to ensure harmed investors receive their rightful compensation.
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Meyer Wilson’s Commitment to Investor Advocacy
Meyer Wilson remains dedicated to advocating for investor rights, and Courtney Werning’s participation in PIABA Hill Day underscores our firm’s commitment to pushing for stronger investor protections. As regulatory discussions continue, we will keep fighting for fair arbitration, enhanced RIA supervision, and improved safeguards against fraud. If you believe you have been harmed by a financial professional’s misconduct, our firm is here to help you seek justice and recover your losses. For more information on Ms. Werning, take a look at our her attorney spotlight below:
Recovering Losses Caused by Investment Misconduct.
