House Financial Services Chairman Spencer Bachus is scheduled to hold a hearing on June 6th on a bill that will hurt small business owners who provide sound financial planning to consumers and who put their clients’ interests first.   The National Association of Personal Financial Advisors (NAPFA), registered investment advisers (RIAs), and the American public should be very alarmed at the damage HR 4624 would do. NAPFA believes consumers will lose access to trusted advice and gain access to salesmen who supply confusing, conflicted advice.

The proposed Investment Adviser Oversight Act of 2012 is written as a plug and socket for FINRA to apply for and become the Self Regulatory Organization (SRO). The appropriate place for the regulation of RIAs remains the Securities and Exchange Commission (SEC), which has directly overseen RIAs for over seven decades.  Rather than adding FINRA’s cumbersome and expensive bureaucracy, the SEC should revise its examination programs to make them more efficient and focused. Congress should authorize the SEC to impose reasonable user fees on RIAs to increase the frequency of its examination program.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access