SCHW · News · 20261107N

RIA Registration Regulatory Change

SCHWAB CHARLES CORP · 2026-11-07 · Importance 34 · Surprise 42

The SEC reclassified investment advisers managing less than $1 billion as “small entities” under the Regulatory Flexibility Act, a change supported by Schwab and intended to reduce regulatory burdens for more than 17,400 firms. The rule adds a ten-year inflation adjustment and removes prior balance-sheet restrictions for small-firm status. Legal experts warned that the SEC could use the reclassification to push more firms toward state-level registration, potentially increasing compliance complexity for those advisers.

Key facts

• Schwab supported the SEC's reclassification of RIAs managing under $1 billion as "small entities," a change intended to reduce regulatory burdens for over 17,400 firms. source