Compliance Solutions for Investment Advisers

Rep. Frank Opposes Self-regulatory Organization for Advisers

According to the article:

House Financial Services Committee Chairman Spencer Bachus, R-Ala, “and other Republicans — favor an SRO because they are not convinced the SEC can adequately regulate advisers.  They criticize the SEC for missing Bernard Madoff’s Ponzi scheme, which bilked investors out of $50 billion.  They also point to SEC statistics that show that the agency has the resources to review only about 8% of the nearly 12,000 registered advisers annually.”

“Mr. Frank pointed out that Republicans have resisted giving the SEC the increased funding called for in the Dodd-Frank law.  They then engage in what Mr. Frank refers to as a self-fulfilling argument:  An SRO is required because the SEC doesn’t have the resources to police advisers.”

” ‘I have an answer to that,’ Mr. Frank said. ‘Give the public agencies enough money.’ “

However this works out, change is certainly coming, though perhaps not until the Spring.

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