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.
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.