Congress to Hold Hearing To Discuss Creating an SRO for Investment Advisers

September 12, 2011

On Tuesday, September 13 the House Committee on Financial Services will conduct a hearing to discuss forming a self-regulatory organization (“SRO”) for investment advisers.  The hearing will take place at 10 AM ET and is entitled “Ensuring Appropriate Regulatory Oversight of Broker-Dealers and Legislative Proposals to Improve Investment Adviser Oversight.”  The Committee has already posted a draft bill on its website.  This bill would amend the Investment Advisers Act of 1940 to create an unnamed SRO for investment advisers.  The following people will testify during this hearing:

  • Mr. William E. Dwyer III, Chairman, Financial Services Institute
  • Mr. Ken Ehinger, President and Chief Executive Officer, M Holdings Securities, Inc., on behalf of the Association for Advanced Life Underwriting
  • Mr. Terry Headley, President, National Association of Insurance and Financial Advisors
  • Mr. Steven D. Irwin, Commissioner, Pennsylvania Securities Commission, on behalf of the North American Securities Administrators Association
  • Mr. Richard G. Ketchum, Chairman and Chief Executive Officer, Financial Industry Regulatory Authority
  • Ms. Barbara Roper, Director of Investor Protection, Consumer Federation of America
  • Mr. John G. Taft, Chief Executive Officer, RBC Wealth Management, on behalf of the Securities Industry and Financial Markets Association
  • Mr. David Tittsworth, Executive Director/Executive Vice President, Investment Adviser Association

At the hearing the Committee will also discuss whether to impose a fiduciary standard on everyone who offers retail investment advice.  Imposing this fiduciary standard would require investment professional to always act in the best interest of their clients.  This means that broker dealers would be held to the same fiduciary standards that investment advisers are currently held to.

Again, the hearing will begin at 10 AM ET on Tuesday, September 13.  If you would like to watch the hearing, click here to access the Committee’s webpage for this hearing.

Posted by Bryan Hill
Labels: SRO