This story appeared in Bank Digest.
Bipartisan legislation has been introduced to create more efficient and effective oversight of the retail investment advisory industry in response to a Securities and Exchange Commission study that revealed the agency lacks resources to adequately examine the nation's nearly 12,000 registered advisers. As part of its study, which was a requirement of the Dodd-Frank Act, the SEC recommended a self-regulatory organization as one option for Congress to consider as it looks for ways to help the agency monitor the industry. The "Investment Adviser Oversight Act of 2012" would authorize one or more self-regulatory organizations for investment advisers funded by membership fees.