CFA Institute: SEC Should Regulate Investment Advisers

On Wednesday, the House Financial Services Committee is bracing for the kind of onslaught that the Financial Industry Regulatory Authority (FINRA) has been enduring for the last couple of years as it takes up the issue of investment adviser oversight. Specifically, the Committee will hold a hearing on the Independent Adviser Oversight Act of 2012 introduced by its chairman, Spencer Bachus (R-Ala), in April. Many of our members know about it — I know because I’ve heard from many of them about it — but we wanted to let you know what CFA Institute is doing.

Today, we have submitted a letter on the issue that will be introduced into the public record for the hearing. Our letter reiterates what we told the Securities and Exchange Commission in a letter back in January 2010, namely that our adviser members prefer — by a wide margin — to have the SEC continue conducting their exams, even if that means a higher- and more-frequent touch form of examination. Read more.