As expected, Rep. Jeb Hensarling, R-Texas, was elected Wednesday as Chairman of the House Financial Services Committee for the 113th Congress.
Hensarling will take over the reins in January, replacing Rep. Spencer Bachus, R-Ala., who had to step down due to term limits.
While industry officials say Hensarling isn’t too keen on the bill Bachus introduced this year calling for a self-regulatory organization for advisors, Karen Nystrom, head of public policy and advocacy for the National Association of Personal Financial Advisors (NAPFA), said recently that the Financial Planning Coalition is still maneuvering to thwart passage of any SRO bill next year. Nystrom said that the Coalition wants to ensure a “bipartisan bill” originates in the Senate allowing the SEC to collect user fees from advisors to fund their exams “as it has a better chance of passing in the House.”
Said Nystrom: “We need a bipartisan bill in the Senate to get any traction on [beating] the SRO legislation. We need to advocate for legislation that keeps us with an open, transparent body” like the SEC. “We’ve heard rumors that [Hensarling] is not wild about” Bachus’ SRO bill, Nystrom said. “But one never knows.”