Adviser SRO Update


The purpose of this communication is to provide a status update on the Investment Adviser Oversight Act of 2012, introduced by Representative Spencer Bachus in April of this year. As explained in a prior Compliance Alert, Representative Bachus’ bill seeks to authorize one or more self-regulatory organizations (“SRO”) to oversee advisers. While the bill is primarily focused on advisers with retail clients, it has nevertheless been subject to intense scrutiny from the industry and has yet to make it out of the House Financial Services Committee for a vote on the House floor.

On July 25th, Representative Maxine Waters introduced an alternative bill titled “Investment Advisors Examination Improvement Act of 2012.” Specifically, the bill seeks to better fund SEC examinations through user fees paid by investment advisers. The same day this user fee bill was introduced, Representative Bachus announced that his SRO bill was on indefinite hold due to lack of bipartisan support. In light of these recent developments and the upcoming November election, legislation on investment adviser oversight is not expected this year. We will continue to keep you informed of any further significant developments.








© 2012 Vista360, LLC. All Rights Reserved.