This is an extended version of the profile that appeared in the May issue of Investment Advisor, part of AdvisorOne's Special Report profiling this year's members of the IA 25, the most influential people in and around the advisor universe. See the complete list and Special Report schedule for extended profiles of all the 2011 members of the IA 25.
If Rep. Spencer Bachus, R-Ala., had his way, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the Consumer Financial Protection Bureau (CFPB) that the law created, would not exist.
After being chosen last December to serve as chairman of the House Financial Services Committee, replacing Rep. Barney Frank –the Massachusetts Democrat and one of the authors of Dodd-Frank with whom Bachus shared numerous barbs during the conference debate on the legislation—Bachus pledged that in overseeing implementation of Dodd-Frank, his Committee would be “committed to going title by title through the 2,300-page Dodd-Frank Act to correct, replace, or repeal” provisions of the new law.
Since officially taking helm in January, Bachus and other GOP members of the Committee have wasted little time in their attempts to starve and water down Dodd-Frank. Depending on who you’re talking to, this could be a good thing or a bad thing.
While various Dodd-Frank rule writings over the coming years will impact how advisors do business, advisors should also pay close attention to whether Bachus will revive his bid to ensure FINRA becomes the self-regulatory organization for advisors. During the conference committee debate on Dodd-Frank, it was Bachus who inserted language giving FINRA oversight power over all brokers who become advisors. Rep. Frank, however, had that language taken out.