Public Policy


Investment Adviser Oversight

What is investment adviser oversight?

The Securities and Exchange Commission (SEC) is responsible for examining the more than 11,000 Registered Investment Advisers (RIAs) in the U.S. to fulfill its mission of investor protection.


Why is investment adviser oversight an important issue?

Due to insufficient resources allocated by Congress, the SEC is currently unable to examine RIAs with any regularity. In fact, RIAs are examined, on average, only once every 11 years, and approximately 40 percent of current RIAs have never been examined, despite managing approximately $55 trillion of American investors’ assets.


What needs to be done?

In the absence of adequate funding for the SEC, the Financial Planning Coalition advocates that Congress authorize the SEC to collect reasonable user fees from RIAs to increase the frequency of examinations to a level appropriate to ensure adequate investor protection. User fees are the most efficient and cost-effective way to address the SEC’s persistent resource shortfalls, and have no financial impact on taxpayers or the federal budget.


Specifically, the Coalition strongly supports proposed federal legislation, H.R. 1627, the Investment Adviser Examination Improvement Act, sponsored by U.S. Rep. Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, and U.S. Rep. John Delaney (D-MD), which would make this most efficient and cost-effective solution to the SEC’s chronic resource problems a reality.

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Financial Planning Coalition

CFP Board, the Financial Planning Association®, and the National Association of Personal Financial Advisors are working together as the Financial Planning Coalition to pursue consumer protection and industry reform.

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