Published On: June 4, 2015

French Hill, a Republican congressman from Arkansas, proposed to shift oversight of investment advisors to the Financial Industry Regulatory Authority (FINRA) from the Securities and Exchange Commission (SEC). He is considering legislation that would give FINRA the authority to examine investment advisors. His stated motivation for doing so is to increase the percentage of advisor examined annually. Officials of the Investment Adviser Association (IAA) spoke out against his proposed legislation after being debated in Congress for years. Last week, a House Financial Services Committee bill passed that would provide a safe space to allow advisers and broker/dealers to provide data on exchange-traded funds (ETFs) to their clients without reports to be considered “offers.” The IAA still believes that the best option is to retain the SEC’s primacy in investment advisor regulation and oversight.

The IAA is in strong opposition to the SRO model. They believe that the model would impose an unnecessary layer of regulation and bureaucracy on advisors beyond what is necessary to increase examinations. They believe there would be questions regarding transparency, accountability, track record and appropriate oversight by the SEC and Congress. A spokesperson for the IAA was quoted as saying: “The IAA will continue its effort to ensure that the SEC has the resources it needs to do the job that it is legally mandated to do.”

Disclaimer

The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.

Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltman Law Securities and Investment Fraud Attorneys