FINRA Letter Sends Letter to SEC About Adviser SRO Issue

November 11, 2010

The Financial Industry Regulatory Authority (FINRA) sent a comment letter to the SEC about the benefits of having the investment adviser industry overseen by a self-regulatory organization (SRO).


FINRA argued in the letter that the SEC does not have sufficient resources to adequately inspect and oversee the adviser industry:

“To deal with this intractable resource problem, we recommend that the Commission  seek to establish one or more self-regulatory organizations (SROs) for investment advisers.”

In the letter, FINRA stated that it would not be appropriate to impose a broker-dealer fiduciary regime on investment advisers.

A number of trade groups, including the ICI and Investment Adviser Association oppose an SRO for the investment adviser industry.

Click here to access the FINRA letter.

Click here to access a letter from the Investment Company Institute Association to the SEC opposing an SRO for the adviser industry.

Click here to access a letter from the Investment Adviser Association to the SEC opposing an SRO for the adviser industry.


Categories

Investment Advisers, Regulatory