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April 11, 2013 at 09:22 AM
President Barack Obama’s fiscal 2014 budget, released Wednesday, allocates $1.674 billion for the Securities and Exchange Commission, a 27% increase, or $353 million, over the $1.321 billion provided by the continuing resolution (CR) the agency was operating under this year.
If approved, the agency would use the extra funds to add 676 staff positions, 325 of which would be used to hire additional examiners; 250 of those examiners would be devoted solely to advisor exams.
In its FY 2014 budget request, the SEC says that during FY 2012 it examined only about 8% of registered advisors, and more than 40% of advisors have never been examined. Additionally, the agency says the number of registered advisors has increased by more than 40% over the last decade, while the assets under management by these advisors have increased more than twofold, to almost $50 trillion.
The SEC says that its “current level of resources is not sufficient to keep pace with the growing size and complexity of the securities markets and of the agency’s broad responsibilities.” Currently, the SEC said it oversees approximately 35,000 entities, including about 11,000 investment advisors, 9,700 mutual funds and exchange-traded funds, and 4,600 broker-dealers with more than 160,000 branch offices.
