House Plans Hearing on SRO for Advisors for Sept. 13; Federal Reserve Still Paying Big Banks Not to Lend

Kristen French
Registered Rep.

The House of Representatives Financial Services Committee’s capital markets subcommittee plans to hold a hearing on Sept. 13 on the regulation of broker/dealers and investment advisers.

The subcommittee is expected to review who should be responsible for examining investment advisers. It may also review whether a fiduciary standard should be extended to broker/dealers when they provide personalized investment advice.

Under a Dodd-Frank mandated study, the SEC recommended a number of options for enhancing the examination of investment advisers: The SEC could charge user fees to fund a more thorough rotation of examinations, or one or more SROs could take on the responsibility. FINRA, the SRO for broker/dealers, has beenvocal about wanting to assume the role—at least for those investment advisers who are dually registered with a broker/dealer—but the investment adviser industry, through its trade group the Investment Adviser Association, has called for the SEC continue to do the job. The SEC does not currently have enough funding to examine all of the RIAs under its jurisdiction, but could potentially charge user fees in the same way that an SRO would.

In the meantime, a separate SRO, called SROIIA, set up shop in March so that it could act as an SRO for investment advisers if given the option. SROIIA has recently teamed up with Fi360 to create a fiduciary examination for registrants…

The article continues at Registered Rep.

Related: For subscribers of The Wall Street Journal, Banking in a Time of Over-Regulation; The president’s red-tape reduction initiative was too timid.

What’s the key to stimulating our economy? Consider a conversation I had recently with a banker in Nebraska. For the first time, he said, his bank now devotes more work hours to compliance than to lending. Specifically, he has 1.2 employees on compliance for every one employee focused on lending and bringing in business.

Imagine a manufacturing company that deployed more than half of its work force as Occupational Health and Safety Administration (OSHA) compliance officers. Such a company would be unable to grow, let alone contribute to broader economic growth.

Yet banks across the country are feeling a similar …

Also, Do You Realize That The Government Is Still Paying Banks Not To Lend…?

One of the most outrageous “open secrets” of U.S. government policy these days is that the Federal Reserve is still paying big banks not to lend money.

And it’s doing that while screwing average Americans who have been responsible and lived within their means.



The Federal Reserve is quietly continuing with one of the many outrageous bank-bailout programs it initiated during the financial crisis–the one in which it pays big banks interest on their “excess reserves.”

What are “excess reserves”?…

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