Vantage Points: Who Should Oversee Registered Investment Advisers? (Video)
Following recent comments by a member of Congress that appear to favor giving the Financial Industry Regulatory Authority (FINRA) jurisdiction over the examinations of investment advisers and congressional deliberations over Securities and Exchange Commission (SEC) funding, the debate over whether to shift oversight from the SEC to a self-regulatory organization (SRO), or another third party, continues.
Kurt Schacht, CFA, managing director of Standards and Advocacy at CFA Institute, and Karen Barr, president and CEO of the Investment Adviser Association, discuss whether the investment management industry should be overseen by a self-regulatory organization — such as FINRA — and whether the SEC has the resources it needs for proper oversight.
Says Barr, “I think the solution is giving the SEC the resources that it needs to do the job — not outsourcing it to FINRA or another SRO. Examinations are a governmental function fundamentally.”
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