Marilyn Mohrman-Gillis, managing director of public policy for the CFP Board, says that the SEC concluded in its study under Section 914 of Dodd-Frank that the agency needs a "stable, scalable source of funding" that could "grow with the growth of advisors."
While the CFP Board is "hopeful that some of the $136 million increase in annual appropriations will be allocated to enhancing the agency's investment advisor exam program, the SEC has many other funding pressures and priorities," she says. Authorizing the SEC to collect user fees to fund an enhanced examination program "will provide the type of stable, scalable funding that the SEC needs to protect investors and is the best solution to thwart an SRO for advisors."
The CFP Board was one of the advisor associations (and TD Ameritrade) that sponsored a study by the Boston Consulting Group, released Thursday, which found that bulking up the SEC's exam program for advisors would cost less than having FINRA be the SRO for advisors, or establishing a new SRO. Read more >
December 16, 2011