Congressional Bill HR4624, the âInvestment Adviser Oversight Act of 2012â has been introduced into Congress, with a hearing scheduled to be held tomorrow, June 6, 2012.  The co-sponsors of the Bill are Finance Committee Chairman Spencer Bachus (R-AL) and Carolyn McCarthy (D-NY).
The idea behind the Bill is that the SEC is spread too thin in terms of staffing and funding resources and so it can not effectively supervise its registered investment advisers.  The Dodd-Frank law in fact mandated a study  to review and analyze the need for the SEC to have enhanced examination and enforcement resources for investment advisers. This study was completed in January 2011, and indicated, not surprisingly, that resources to meet the pending demand caused by the registration requirement of Dodd-Frank were indeed scarce.
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