Jack Herstein, the president of the North American Securities Administrators Association (“NASAA”) and Assistant Director of the Nebraska Department of Banking and Finance’s Bureau of Securities, has released a statement regarding the Investment Adviser Oversight Act of 2012, recently introduced by Rep. Spencer Bachus, the Chairman of the U.S. House Financial Services Committee.
Category Archives: SRO
Rep. Spencer Bachus, the Chairman of the House Financial Services Committee, and Rep. Carolyn McCarthy have introduced a bill, the Investment Advisers Oversight Act of 2012, which would create a self-regulatory organization (“SRO”) for investment advisers.
Professor Suggests Using External Auditors to Increase Investment Adviser Examinations
November 04, 2011
Section 914 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) required the U.S. Securities and Exchange Commission (“SEC”) to review the frequency of investment adviser examinations and to consider various ways to increase the frequency of such examinations, such as forming an investment adviser self-regulatory organization (“SRO”). As a result, Congress has begun to look at different ways to increase the frequency of examinations of investment advisers. The solutions that have been proposed and are being debated include forming an independent SRO, giving FINRA the authority to serve as the investment adviser SRO, increasing the SEC’s funding, charging investment advisers a user fee, or shifting the regulatory authority to the Bureau of Consumer Financial Protection. James Angel, a professor at Georgetown University’s McDonough School of Business has proposed another solution. In his article titled “On the Regulation of Investment Advisory Services: Where do we go from here?” Angel suggests that the best solution to provide increased regulatory oversight of investment advisers is to require investment advisers to hire external auditors to conduct compliance reviews. Angel’s research paper was supported by a grant from TD Ameritrade and his research paper indicates that his research included numerous conversations with broker, regulators, advisors, scholars and industry trade groups.
Examining the House Financial Services Committee’s Investment Adviser SRO Draft Bill
September 16, 2011
Prior to conducting Tuesday’s hearing on whether to form a self-regulatory organization (“SRO”) for investment advisers, the Chairman of the House Financial Services Committee, Rep. Spencer Bachus posted a draft bill on the Committee’s website. The draft bill would form a self-regulatory organization for investment advisers under what would be known as the “Investment Adviser Oversight Act of 2011.”
Congress Holds Hearing Concerning Investment Adviser SRO
September 13, 2011
Today, September 13, the House Committee on Financial Services conducted a hearing to discuss forming a self-regulatory organization (“SRO”) for investment advisers. There were three oversight options discussed, (1) having the U.S. Securities and Exchange Commission (“SEC”) charge a user fee to provide funds for more frequent regulatory examinations; (2) creating an independent SRO; and (3) giving FINRA the authority to serve as the investment adviser SRO. Eight individuals testified in front of the House Committee. The following chart shows which of the three approaches the individuals thought would be most effective.
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:
Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), the U.S. Government Accountability Office (“GAO”) recently released a study regarding the feasibility of forming a self-regulatory organization (“SRO”) to oversee investment advisers to private funds. Click here for a copy of the study.
House Financial Services Committee Advances Investor Protection Act
November 06, 2009
Here’s our update regarding proposed changes to the regulation of investment advisers.
House Financial Services Committee Votes to Raise Assets Under Management for SEC Registration as Investment Adviser from $25 Million to $100 Million
October 29, 2009
Investment News is reporting that the Financial Services Committee of the U.S. House of Representatives passed today an amendment to the Investor Protection Act, H.R. 3817, whereby the general assets under management requirement to register with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser would increase from $25 million to $100 million.
The Adminstration Seeks Fiduciary Duty for B/Ds — Is the SEC Chairman Advocating the Establishment of an SRO for RIAs?
June 20, 2009
In the white paper, “Financial Regulatory Reform: A New Foundation,” recently released by the U.S. Treasury Department, the Obama Administration proposes the establishment of a fiduciary duty for broker-dealers offering investment advice and harmonization of the regulations of broker-dealers and registered investment advisers.
