UBS’s and Morgan Stanley’s recent exit from the Protocol for Broker Recruiting may portend other financial services firms’ withdrawal going forward. If that happens, we predict an increase in litigation stemming from advisors’ departures from wirehouses; it will also impact wirehouse-to-wirehouse recruiting. Separately, the SEC has reallocated staff resources to increase the number of RIA examinations it conducts each year. In his September remarks to Congress, SEC Chairman Jay Clayton indicated that the SEC staff was on track to deliver a 30 percent increase in RIA examinations in the current fiscal year. We believe those increases will result in additional referrals to enforcement, and ultimately an increase in the number of regulatory actions – settled and litigated – against RIAs.