Finding A Way.

Debate Over Investment Adviser Oversight Likely to Heat Up

New York finance attorneyAs the summer approaches, the debate over whether a new self-regulatory organization (SRO) should be created to oversee investment advisers is likely to heat up.  Lobbying efforts on behalf of the adviser industry are ramping up in anticipation of Rep. Bachus releasing either a revised draft of the SRO bill or a final version in the coming months.

The Investment Adviser Association (IAA) has announced a concerted lobbying effort to take place June 7. IAA plans to schedule meetings between advisers and members of Congress and their staffs to discuss the draft SRO bill proposed by House Financial Services Committee Chairman Spencer Bachus, R-Ala.

As we have previously discussed on this blog, the future of adviser oversight is a contentious issue. While the Financial Industry Regulatory Authority has been aggressively lobbying to take over the role, most advisers strongly oppose oversight by anyone other than the Securities and Exchange Commission.

To make sure that doesn’t happen, Neil Simon, IAA vice president for government relations, is asking advisers to become personally involved in the lobbying effort.

“If the message IAA is delivering is going to resonate politically, it is absolutely essential that advisers who live and work in these locales sit down with their elected representatives and their staffs,” he said.

Will you be heading to Capitol Hill?

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