RJ and Makay

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The House Financial Services Committee (HFSC), led by chairman Spencer Bacchus (R-LA), introduced legislation yesterday that may lead the Financial Industry Regulatory Authority (FINRA) to become the self-regulatory organization (SRO) for retail investment advisors. In 2011, only 8% of investment advisors underwent SEC examination, compared to 58% of broker-dealers, according to an HFSC press release.  The Investment Advisors Act of 1940 would be amended by the legislation to enable the creation of National Investment Advisor Associations (NIAAs). NIAAs would register with the SEC and serve under SEC oversight.

In case any unforeseen issues arise with the new Dodd-Frank financial reform legislation, the House Financial Services Committee stands ready to “identify and remedy” those issues.

It made that pledge recently in a 20-page draft of a strategic plan circulated to committee members and staff. The committee plans to focus in particular on the proper implementation of new rules governing proprietary trading and derivatives, the draft says.

The House Democratic Steering and Policy Committee has appointed Congressman John Carney (D-DE) to serve on the House Financial Services Committee. The Financial Services committee is responsible for all aspects of the U.S. financial services sector including banking, securities, insurance, real estate, and housing.

"With over 50% of publicly traded corporations and 60% of Fortune 500 companies incorporated in Delaware, the issues within the Financial Services Committee's jurisdiction are of paramount importance to my district," says Congressman Carney. "For more than three decades, Delaware's at-large representative has had the privilege of serving on the House Financial Services Committee and its predecessor, the House Banking Committee. I’m honored to be continuing that long tradition in the 112th Congress."