Both on Hold as House Committee Tries to Reach Consensus
Many investment advisers cheered last week, as legislation was introduced on Capitol Hill that would keep them under the purview of the Securities and Exchange Commission. Even better for advisers, the measure had the effect of halting a bill that would shift adviser oversight from the SEC to a self-regulatory organization....
Each of the sponsors of the competing bills is a member of the House financial panel. Last week, [House Financial Services Committee Chairman Spencer] Bachus said that no legislation is moving ahead without consensus on how to strengthen investor protection by increasing the number of adviser exams performed annually....
"We agree with Chairman Bachus that there's a serious problem with the lack of oversight of investment advisers and thank him for shining a light on the need for more examinations to better protect investors," said Marilyn Mohrman-Gillis, managing director of public policy and communications at the Certified Financial Planner Board of Standards Inc. "We're gratified he's stepping back to look for other solutions." Read more >
Mark Schoeff, Jr.
July 31, 2012