As the debate over regulatory reforms in the retail investment adviser sector has resurfaced on Capitol Hill, industry groups on both sides of the issue are making their case to lawmakers and staffers in the hopes of either advancing or derailing legislation that would establish a self-regulatory organization (SRO) to oversee RIAs....

McCarthy, the Democratic co-sponsor of the SRO bill, said at Wednesday's hearing that while she favors an expanded role for the SEC, in the current climate in Washington, vesting the agency with additional funding or oversight authority is a political nonstarter. The FSI and others have been making the same point, going a step further to suggest that industry groups championing the SEC solution are doing so in an effort to beat back regulation of any sort. Paulitz called it a "stalling tactic."

Marilyn Mohrman-Gillis, managing director for public policy and communications at the Certified Financial Planner Board of Standards, or CFP Board, which has been lobbying against the SRO bill, flatly rejected that contention.

"What is not viable about a solution that would close the SEC resource gap in a way that has no impact on taxpayers or the federal deficit?" Mohrman-Gillis challenged.

Financial Planning
Kenneth Corbin
June 7, 2012