Today, Congressman Spencer Bachus, Chairman of the House Financial Services Committee released a draft bill which would bring investment advisors under one or more Self Regulatory Organizations. Although the bill doesn’t explicitly designate FINRA as the SRO, all signs point to that determination.
A January report, required by the Dodd-Frank Act found that “[SEC] staff believes that the Commission will likely not have sufficient capacity in the near or long term to conduct effective examinations of registered investment advisers with adequate frequency.” According to Bachus, “[The legislation] will result in much more effective regulation and examination.”
The discussion draft would require investment advisors associated with broker-dealers to register with the SRO. The House Financial Services Subcommittee is scheduled to hold a hearing on investment advisor oversight on Tuesday, September 13.
To read the discussion draft, click here.
