[Chambo]

https://www.youtube.com/watch?v=Pb1x...5VgkamZ1MxFhmQ

[rdgllc]

https://www.youtube.com/watch?v=Pb1x...5VgkamZ1MxFhmQ

Just finished watching. Thoughts?

[Chambo]

based on what was said, who testified, etc....they want to go after more than just COJs. Sounds like they want to regulate the industry

[Davincinc]

based on what was said, who testified, etc....they want to go after more than just COJs. Sounds like they want to regulate the industry

this is the first steps. next they may req. a series 7 to sell mca....

[Kevin Henry-Seacoast]

Series 6,7,8,9,24,and 63. the 24 was the toughest. I let them expire about 5 years ago. I am thinking of renewing them and taking the tests over.

[Chambo]

this is the first steps. next they may req. a series 7 to sell mca....

Mortgage Brokers, Real Estate Brokers, Insurance Brokers.....all need to get licenses. Only a matter of time before they are required here

[Kevin Henry-Seacoast]

Who is going to regulate/enforce the industry? It would take a long time to get a regulatory/enforcement arm set up, create guideline/rules, registering all of the people, etc...

The tough part is enforcement. Hell, look how many people are running around doing equity deals without a license and have not gotten into trouble. Some have been barred and are stick conducting business as usual. Example: The guys that raise the money for 1st Global.

All member firms will have to pay association dues to fund the regulatory entity. Good luck chasing the dues down.

I am all for it, but I will long be retired before it happens.

KH

[SmartAdvanced]

Mortgage Brokers, Real Estate Brokers, Insurance Brokers.....all need to get licenses. Only a matter of time before they are required here

and what if there is a licence requirement?

[abfunders]

Is licensing an issue that the federal government will take on? Sounds like a state issue to me. It always has been.

[Kevin Henry-Seacoast]

Micah,

It is easier to do on national level rather than state level as each state may have different rules and/or guidelines. At a state level it would be a nightmare for lenders/funders to keep track of all the different requirements. Much like FINRA today is a national authority, but each state has different blue sky rules. The blue sky rules don't differ much from state to state, but that only because they have evolved over many years.

An easier solution is creating an industry association that requires each member to register and abide by certain rules. If the rules are broken, you can be kicked out of the association. The International Factoring Association does this.

[abfunders]

Kevin, it's easier to do on the federal level for sure. However, the political science major in me is commenting that the states themselves have been taking care of this type of licensing in the past, it's their territory. I'm commenting on the federal vs state level and the constitution, not what works. I guess the feds could say that the lenders/brokers are all working between all states, but many of us can California deals and get paid in creative ways. They've never regulated something like this on the federal level before, so to start now would be a major breach of states rights.

[Kevin Henry-Seacoast]

Micah,

It may very well wind up like FINRA. A national license, but you have to register in each state you do business and abide by their rules.
It will be very difficult for funders/lenders at first as they would have to understand each state rule. Much like blue sky today, over time the rules for each state are very similar.

The industry would be better off organizing a self policing association where membership is almost a requirement.

[omegafund]

You can still broker deals without being a member of IFA. Memberships and laws just fill the coffers of state and associations. Works somewhat for residential mortgage brokers.

[Kevin Henry-Seacoast]

Omegafund,

Correct. Brokers are not required to be members. Smart brokers will only work with members.

KH