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Financial Planning Coalition Opposes FINRA Oversight of Advisers

September 26, 2012

On November 3, 2009, the Financial Planning Coalition wrote to Members of the House Committee on Financial Services to express its opposition to an amendment to the Investor Protection Act of 2009 that would extend the regulatory authority of the Financial Industry Regulatory Authority (FINRA) to cover investment advisers who are associated with broker-dealers under FINRA’s authority. Read more.

On September 13, 2011, in a prepared statement for the record before the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises, the Financial Planning Coalition raised concerns about a legislative proposal to establish an SRO for investment adviser oversight and reiterated serious concerns regarding the possibility of FINRA being designated as such an SRO.

On April 25, 2012, the Coalition released a statement opposing the Investment Adviser Act of 2012, noting that creating an SRO for investment advisers would unnecessarily burden small business owners with additional costs, and suggesting that building on the SEC's existing infrastructure and experience is a better, more expedient, more effective and less costly option than creating an added layer of regulation.

On June 6, 2012, the Financial Planning Coalition submitted a prepared statement to the United States House of Representatives Committee on Financial Services, strongly opposing the Investment Adviser Oversight Act of 2012 (H.R. 4624), which would establish one or more self-regulatory organizations (SROs) for investment advisers. The Coalition reiterated its belief that SEC oversight is the appropriate and most cost effective solution to increase adviser examinations and provide effective investor protection.