According to House Republicans, the SEC’s emphasis on regulation of private investment funds threatens to diminish its oversight of registered investment advisers. “The attention the SEC has paid to enhancing the regulatory scrutiny afforded to sophisticated investors suggests that the SEC has prioritized the protection of ‘millionaire and billionaire’ investors over ‘mom and pop’ investors,” wrote Rep. Jeb Hensarling, R-Tex., and Rep. Scott Garrett, R-N.J. Mr. Hensarling is the chairman of the House Financial Services Committee. Mr. Garrett is chairman of the panel’s Capital Markets Subcommittee.
