>Rep. Scott Garrett, R-N.J., said he’s waiting to see the SEC’s study on the need for a SRO’s for advisers
House subcommittee chairman sees merits of SROs, fiduciary standard
But Garrett waiting to read SEC’s reports on both before taking a position
Mark Schoeff Jr.
January 11, 2011
The new chairman of a House subcommittee with jurisdiction over investment adviser issues is holding his fire on two crucial questions effecting the industry — until he reads upcoming reports addressing the topics.
Rep. Scott Garrett, R-N.J., said he’s waiting to see the Securities and Exchange Commission’s study on the need for a self-regulatory organization for advisers — as well as the commission’s report on the efficacy of a universal fiduciary duty for retail investment advice — before taking a firm position on either.
Despite holding off until getting the reports, which are both due this month, Mr. Garrett indicated that SROs have a track record of success.
“I do see them as positive forces … having worked effectively in other areas,” Mr. Garrett, chairman of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, said in an interview with InvestmentNews on Jan. 6. “They hold merit.”
If the SEC recommends an adviser SRO, it will have to be authorized by Congress. The SRO report must be delivered to the appropriate House and Senate committees by Jan. 17.
The fiduciary-duty study, which will assess the differences in oversight of investment advisers and broker-dealers, and any gaps in regulation, is due Jan. 21. The SEC can then write a rule establishing a universal standard of care for retail investment advice.
MORE: https://www.investmentnews.com/article/20110110/FREE/110119993
