Chairman White Will Focus Additional Resources on Investment Advisers
In testimony before a Congressional Subcommittee, SEC Chairman Mary Jo White described how the proposed 2014 SEC budget would add significant additional resources to supervise investment advisers. Ms. White indicated that the new budget would include funds to hire 250 additional examiners “to increase the proportion of advisers examined each year, the rate of first-time examinations, and the examination coverage of investment advisers and newly registered private fund advisers.” Another 60 positions would be added to “improve oversight and examination functions related to broker-dealers, clearing agencies, transfer agents, self-regulatory organizations (SROs), and municipal advisors.” Ms. White said that another 131 hires would be added to the Enforcement staff. Ms. White said additional funds were necessary for “expanding oversight of investment advisers and improving their regulation and compliance – a point at which investors are most at risk of being defrauded and harmed.”
OUR TAKE: The SEC won’t get everything it has requested, but it will certainly get more funds to hire examination personnel and enforcement lawyers.