Amendment would restrict FINRA's reach over advisers

12/10/2009 | InvestmentNews (free registration)

Legislation moving through the U.S. Congress could allow the Financial Industry Regulatory Authority to serve as the oversight body for any investment adviser associated with a broker-dealer, thus giving FINRA authority to inspect and regulate such firms. This would create potential for confusion because the Securities and Exchange Commission and FINRA would apply the same rules to separate groups of large advisers. A recent survey of the CFA membership indicates support for having the SEC continue to regulate all large investment advisory representatives. Reps. Steve Cohen, D-Tenn., and Barney Frank, D-Mass., plan to offer an amendment to H.R. 4173 to strike the provision that would give FINRA such authority. Support for this amendment can be expressed by contacting your congressional representative. Read the full bill.

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