Does Regulatory Jurisdiction Affect the Quality of Investment-Adviser Regulation?

  title={Does Regulatory Jurisdiction Affect the Quality of Investment-Adviser Regulation?},
  author={Ben Charoenwong and Alan Kwan and Tarik Umar},
  journal={American Economic Review},
The Dodd-Frank Act shifted regulatory jurisdiction over “ midsize” investment advisers from the SEC to state-securities regulators. Client complaints against midsize advisers increased relative to those continuing under SEC oversight by 30 to 40 percent of the unconditional probability. Complaints increasingly cited fiduciary violations and rose more where state regulators had fewer resources. Advisers responding more to weaker oversight had past complaints, were located farther from regulators… 
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