SEC
Executives increase SEC litigation by 50%Posted by RJ and Makay on May 24, 2012 |
>> Read More RJ & Makay Blog Posts
The SEC has a reputation for being able to settle enforcement actions without going to court, but there has been a surge in companies and executives that are taking their case to trial. Currently there are 90 cases being litigated, which is a 50% increase over last year. Matthew Martens, the chief litigation counsel at the SEC, said that “at the end of the day, if we can’t win cases then people don’t settle. That’s the reality.”
Boston Consulting Group (BCG) issued a report that was released by advisory groups yesterday that refutes the Financial Industry Regulatory Authority’s (FINRA) cost estimates for the role it wants as the self-regulatory organization (SRO) for advisors. The BCG review, sponsored by several advisory associations and TD Ameritrade Institutional, says that FINRA’s April 25 cost estimate underestimates overhead costs and overestimates advisor examiner productivity.
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.
