GroupThink

? The Financial Services Institute (FSI) issued a statement on October 6 urging the House Financial Services Committee to apply a new universal standard of care to broker/dealers in addition to investment advisors under the proposed Investor Protection Act of 2009 (IPA). FSI also noted its support for “the creation of an industry-informed, self-funded regulatory authority dedicated to effective supervision, timely examination, and vigorous enforcement of both registered investment advisers and broker-dealers.”

? Also on October 6, David Tittsworth, executive drector of the Investment Adviser Association (IAA), testified before the House Financial Services Committee, at a hearing entitled, “Capital Markets Regulatory Reform: Strengthening Investor Protection, Enhancing Oversight of Private Pools of Capital, and Creating a National Insurance Office.” In his testimony Tittworth voiced the Association’s strong support for the Administration’s call to require “broker/dealers who provide investment advice about securities to investors to have the same fiduciary obligations as registered investment advisers” and for full funding for the SEC’s regulatory, inspection, and enforcement efforts. IAA believes Congress should examine funding alternatives for the SEC, including self-funding mechanisms and user fees, a newly proposed option. The Association continues to oppose the creation of an SRO for the advisory profession.