Bachus and McCarthy Introduce Bipartisan Bill to Establish Adviser SRO
Congressmen Bachus (R-AL) and McCarthy (D-NY) introduced the Investment Adviser Oversight Act of 2012, which provides for the creation of a self-regulatory organization for most investment advisers. Excluded from SRO supervision (and subject to direct SEC supervision) would be investment company sponsors, private fund managers, and advisers to qualified purchasers. The SEC would supervise the SRO and retain policy-making responsibilities. Before the Committee yesterday, SEC Chairman Mary Schapiro testified that the SEC examined only 8% of registered investment advisers in 2011 and that the SEC has never examined 40% of investment advisers. FINRA supports the legislation, but NASAA (the association of state regulators) opposes it.