HighTower's Bob Oros To Be part of FSI's Board of Administrators

HighTower CEO Bob Oros will be part of the Board of Administrators of the Monetary Companies Institute (FSI), with the $60 billion RIA changing into a member agency of the institute, the FSI introduced at this time. Oros’ appointment to FSI’s board comes a number of months after the previous head of the unbiased dealer/supplier HD Vest formally grew to become CEO of Hightower.

“It’s a fantastic honor to be named to the FSI Board, a gaggle of business leaders I've lengthy admired for his or her assist and advocacy on behalf of economic advisors,” Oros mentioned in regards to the announcement. “I sit up for working carefully with the Board to handle the converging pursuits of all who're dedicated to offering unbiased, goal recommendation to all those that save and make investments.”

The FSI was based in 2004 and represents greater than 100 unbiased companies and greater than 160,000 affiliated advisors, and advocates for the business on the regulatory and legislative stage. In January, the FSI elected six new administrators, together with executives from Constancy Clearing and Custody Options and BNY Mellon’s Pershing. FSI President and CEO Dale Brown cited Oros’ expertise as a boon for the institute’s board in an interview with WealthManagement.com.

“The transfer in the direction of a holistic strategy to serving to shoppers has been underway for just about all the 31 years I’ve been concerned within the occupation, and it’s pushed by and huge by shopper expectations,” he mentioned. “Bob is one other skilled business chief and veteran becoming a member of the opposite leaders and professions on our board in the direction of making certain all People have entry to inexpensive monetary recommendation.”

Former HighTower CEO Elliot Weissbluth introduced in August of final yr he can be stepping right down to turn into chairman of the Chicago-based agency’s board. On the time, Weissbluth mentioned he would concentrate on facilitating the expansion and consolidation of RIAs within the community. Since taking on as CEO, Oros has expanded his govt staff, and in February, HighTower bought stake in a $2.6 billion RIA.

The transfer additionally highlights an evolving perspective on laws for monetary advisors from Hightower administration. Weissbluth was outspoken in assist for the Division of Labor's fiduciary rule, the truth is arguing it didn't go far sufficient in making certain advisors labored in the most effective curiosity of shoppers. The FSI, which has advocated on the federal stage for a uniform customary that will apply each to RIAs and unbiased dealer/sellers, lobbied towards the DOL's initiative, arguing it might damage companies that served smaller buyers, and was one of many lead plaintiffs on the lawsuit that in impact stopped the rule from being applied. 

The group helps the U.S. Securities and Trade Fee’s proposed Regulation Greatest Curiosity rule (Reg BI), which is predicted to be launched this fall, which is able to seemingly embody a ‘greatest curiosity customary’ for IBDs that supporters say would exceed the present ‘suitability’ customary for brokers, although some have criticized it for falling wanting the fiduciary customary adopted by RIAs, together with Weissbluth.  Brown touted the worth Oros may deliver to FSI’s engagement with policymakers, saying the FSI sees a uniform customary for advisors as a essential shift.

“Our dedication to that's unwavering,” he mentioned. “That’s why we’re supportive of the SEC’s Greatest Curiosity Regulation, and so Bob will probably be a useful voice and perspective as we proceed our pursuit of constructive engagement, and the foundations are harmonized.”

Brown mentioned the SEC’s forthcoming regulation, along with different shifts in shopper desire and expertise, means convergence between the IBD and RIA fields is more and more seemingly, and hopes that each one monetary advisors, whether or not IBDs or RIAs, will discover the instiute's work helpful.

“Each monetary advisor dedicated to performing in the most effective curiosity of their shopper and including their voice and shaping the regulatory atmosphere so it really works will discover a house at FSI,” he mentioned.