FINRA to SEC: “No Need to Reinvent the Wheel”
Not surprisingly, FINRA strongly supports the creation of a new self-regulatory organization to enhance the frequency of examinations of investment advisers – one based on the structure FINRA uses to regulate broker-dealers. In recent correspondence from FINRA Chairman and Chief Executive Officer Richard Ketchum to SEC Secretary Elizabeth M. Murphy, Chairman Ketchum, citing the SEC’s “intractable resource problem,” asserts that creating a new investment adviser SRO is the most practical option, would be subject to SEC oversight, and have a governance model similar to FINRA’s. He’s probably right. It would a shock for the SEC to try to reinvent the wheel on this issue.
Contact Tom Jensen for more information.