The House Financial Services Committee has a new chairman. Rep. Jeb Hensarling (R-TX) was elected on Wednesday and will take the gavel in January when the 2013 Congressional session convenes.
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Hensarling currently serves as vice chairman of the committee and chairman of the House Republican Conference.
He will succeed Rep Spencer Bachus (R-AL) who was one of the authors of a bill designed to establish one or more regulatory bodies for advisors. The bill stalled when Bachus could not get enough support in the committee for a vote.
It’s unlikely that the bill will be taken up in the new Congress as there are other issues of greater priority and Hensarling announced shortly after his election that a major goal was to reduce regulations.
Observers say that a bill to create an SRO is likely to be introduced at some point during the year because FINRA, the broker SRO that is seeking to also oversee investment advisors, strongly backs it.
Advocates for advisors hope Hensarling will ignore the SRO bill.
However, there seems to be a consensus that investment advisors need greater oversight.