Proponents of legislation that would shift the oversight of investment advisers from the Securities and Exchange Commission to a self-regulatory organization — perhaps the Financial Industry Regulatory Authority Inc. — assert that the bill has bipartisan momentum.
But the top Democrat on the House Financial Services Committee won't sign on, because he questions whether the financial industry should police itself....
"Finra's analysis [of the estimated startup costs for an SRO] raises concerns about the independence of this oversight infrastructure it says it can put in place, and the ability of the infrastructure to meet the unique needs of investment advisers," said Marilyn Mohrman-Gillis, the CFP Board's managing director of communications and public policy. Read more >
Mark Schoeff Jr.
April 29, 2012