SRO DEAD… For now?

A few weeks back I blogged about an article my partner Matt Pribila wrote concerning the push for more regulations over Registered Investment Advisors (RIAs).  The issue, at the time, seemed to be whether the SEC (Securities and Exchange Commission), FINRA (Financial Investment Regulator Association) or an SRO (self regulating organization) should be granted the authority to perform annual examinations of RIAs.

The House Financial Services Committee Chair, Spencer Bachus (R-Ala.), introduced a bill which would maintain the SECs control over the examination process.  There was an additional bill brought to the House that would allow the SEC to charge user fees for exams, which was backed by advisers.

Hours after introducing his bill, Mr. Bachus put his bill on hold stating to InvestmentNews, “Everyone agrees there is a serious problem, unfortunately, there is no consensus on how to fix it.  No bill, including the bipartisan bill I offered, will move forward in the committee unless and until there is a consensus.”

Now, I am the first one to admit that making knee-jerk decisions isn’t always in the best interest of anyone, but when faced with the serious problems surrounding the financial community, something needs to be done to restore investor confidence.  

With only a few congressional sessions left in 2012, it doesn’t look like anything will change this year.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s