With the anniversary of the collapse of Lehman Brothers in the rearview mirror and the economy improving, industry executives and analysts are questioning whether the wealth management industry still needs to undergo substantial regulatory change, and what changes, if any, could be beneficial.

"If you tighten regulations too much, you will clog up the market," said Erik Sirri, the former director of the Security and Exchange Commission's division of market regulation, at the Investment Company Institute's annual tax and accounting conference. "Innovation occurs at the fringes. We should let the fringes be small and innovative, so that if they fail, they will fail small."

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