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FINRA to SEC: “No Need to Reinvent the Wheel”

By | November 11, 2010

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.

Topics: 
Broker-Dealer