Schapiro Wants Assessment of State Securities Laws Before Transferring Adviser Oversight
SEC Chairman Mary Schapiro said in a recent speech that an SEC priority for financial reform legislation is to ensure that oversight of small advisers is “only transferred to states that require registration and will provide oversight standards comparable to the SEC’s standards.” Currently, advisers who manage less than $25 Million in AUM register with the states instead of the SEC. The Senate reform legislation recommends moving the threshold to $100 Million.
OUR TAKE: The current law does not assess the quality of a state’s regulatory system. Is Ms. Schapiro advocating a federal mandate for state securities laws?