By James Hamilton, J.D., LL.M., Principal Analyst, CCH Federal Securities Law Reporter and CCH Derivatives Regulation Law Reporter.
FINRA has entered a fierce debate over Dodd-Frank’s call for an SEC study on enhanced examinations of investment advisers by urging the SEC to create a self-regulatory organization (SRO) for investment advisers. In a letter to the SEC, FINRA said that, given the Commission’s funding limits, it is unlikely that the SEC will be able to accomplish more frequent adviser examinations on its own. To deal with what FINRA called an ``intractable resource problem,’’ the SEC was urged to seek authority to establish an SRO for investment advisers to augment the government’s efforts in overseeing advisers. The debate over an SRO for advisers has intensified with industry associations voicing strong opposition to the idea.