Solebury Asset Management, LLC Comment On Regulatory Notice 25-05
Michael Scavullo
Solebury Asset Management, LLC
As the owner of a Registered Investment Advisory (RIA) firm and a registered representative of an affiliated FINRA member firm, I respectfully oppose proposed Rule 3290 in Regulatory Notice 25-05.
The rule would inappropriately extend FINRA’s oversight to RIAs who are already regulated by the SEC and state authorities. It would also create a two-tier system—imposing additional compliance burdens on RIAs with FINRA-licensed individuals, while exempting others from the same rules.
Most concerning, the proposed requirement that broker-dealers supervise advisory transactions “as if executed on behalf of the member” could compel RIAs to share non-public client data with unaffiliated firms. This violates both federal (Regulation SP) and State privacy laws, and undermines the confidentiality expected in the advisor-client relationship.
There is no clear benefit to clients from this added oversight, and no statutory basis for such an expansion of FINRA’s authority. It risks creating regulatory confusion, raises serious privacy concerns, and adds unnecessary complexity to fiduciary relationships.
I urge FINRA to reconsider and not adopt Rule 3290 as proposed.
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Solebury Asset Management, LLC Comment On Regulatory Notice 25-05
As the owner of a Registered Investment Advisory (RIA) firm and a registered representative of an affiliated FINRA member firm, I respectfully oppose proposed Rule 3290 in Regulatory Notice 25-05.
The rule would inappropriately extend FINRA’s oversight to RIAs who are already regulated by the SEC and state authorities. It would also create a two-tier system—imposing additional compliance burdens on RIAs with FINRA-licensed individuals, while exempting others from the same rules.
Most concerning, the proposed requirement that broker-dealers supervise advisory transactions “as if executed on behalf of the member” could compel RIAs to share non-public client data with unaffiliated firms. This violates both federal (Regulation SP) and State privacy laws, and undermines the confidentiality expected in the advisor-client relationship.
There is no clear benefit to clients from this added oversight, and no statutory basis for such an expansion of FINRA’s authority. It risks creating regulatory confusion, raises serious privacy concerns, and adds unnecessary complexity to fiduciary relationships.
I urge FINRA to reconsider and not adopt Rule 3290 as proposed.
Thank you for your time and consideration.
Michael Scavullo
Managing Member
Solebury Asset Management, LLC