Even If The SEC Gets More Funding, Mary Schapiro Might Abandon RIA Oversight

Friday, September 16, 2011 07:19
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Even If The SEC Gets More Funding, Mary Schapiro Might Abandon RIA Oversight

Having heard from advisor groups earlier in the week, Congress turned yesterday to the SEC and those who know the regulator best to figure out whether reform is necessary.

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The House financial services committee heard from Mary Schapiro, the consultants who put together an influential report on the commission, and various ex-staffers in its recent hearing.

 

There were a few surprises. Committee chairman Spencer Bachus continues to demonstrate that while he's been fighting many of the components of the Dodd-Frank reform, starving the SEC is not his primary goal.

 

In yesterday's Q&A, he acknowledged that the SEC needs more funding. However, he tied the promise of more money to the regulator's ability to operate more efficiently.

 

Meanwhile, Mary Schapiro seems ready to hand over oversight of RIA firms to an outside self-regulatory organization, whatever happens.

 

In her testimony, she conceded that "reprioritizing regulatory activities" could be necessary, and that might entail delegating to an SRO.

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