Congress Plans SEC Oversight Hearing for July 20

Securities regulator also announces it will add three new offices to Division of Corporation Finance

More On Legal & Compliance

from The Advisor's Professional Library
  • Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times.  Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
  • Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
Just days after the Senate passed the landmark financial services reform bill on July 15, the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, chaired by Rep. Paul Kanjorski (D-Pennsylvania), plans to hold an oversight hearing Tuesday, July 20, to examine the current state of the Securities and Exchange Commission (SEC), its priorities, and the near term challenges the agency faces. SEC Chairman Mary Schapiro will be the only person testifying.

While the obvious "big challenge" the agency faces is implementing the scads of changes set out in the reform bill, the SEC is already busy setting up new offices at the securities regulator to police the market. The SEC announced on July 16 that the SEC will create three new specialized units within the agency's Division of Corporation Finance--the division that reviews public company filings--to focus on large financial institutions, asset-backed securities and other structured products, and securities offering trends.

Read more about the financial reform bill: marketplace winners and losers; impact on advisors, broker/dealers, and banks; the fiduciary standard for brokers; and the history of financial reform.

Reprints Discuss this story
This is where the comments go.