Securities and Exchange Commission (SEC) Chair Mary Jo White on March 22 presented the House Appropriations Committee’s Subcommittee on Financial Services and General Government with her agency’s fiscal year (FY) 2017 budget request. Among the initiatives for which the SEC seeks funding is increasing its examination of investment advisers and other key entities who interact with retail and institutional investors.
In making the case for the FY 2017 funding request, White pointed out that in addition to fulfilling congressional mandates, the SEC also advances other important policy objectives, including supervision of nearly 12,000 investment advisers and overseeing the Financial Industry Regulatory Authority (FINRA).
“Funding at the requested level will permit the agency to hire an additional 250 staff in critical, core areas and continue to improve our information technology so that we can better oversee today’s markets with the sophisticated tools necessary to safeguard investors,” said White. She said that among the SEC’s priorities for FY 2017 is to “increase examination coverage of investment advisers and other key entities who interact with retail and institutional investors.”
“The need for significant additional resources to permit the agency to increase its examination coverage of registered investment advisers and investment companies cannot be overstated,” said White. She told the subcommittee that the current projection is that the number of investment advisers “will grow to 12,500 investment advisers managing more than $70 trillion in assets by FY 2017.”
In addition, said White, SEC examination staff faces challenges posed by the increased use of new and complex products by investment advisers and broker-dealers, as well as “the growth of complex ‘families’ of financial services companies with integrated operations that include both broker-dealer and investment adviser affiliates.”
White told the subcommittee, “Under the FY 2017 request, a top priority will be to hire 127 additional examiners, primarily to conduct additional examinations of investment advisers,” and that improved oversight and examination functions related to broker-dealers is also a high priority.
In making the case for the FY 2017 funding request, White pointed out that in addition to fulfilling congressional mandates, the SEC also advances other important policy objectives, including supervision of nearly 12,000 investment advisers and overseeing the Financial Industry Regulatory Authority (FINRA).
“Funding at the requested level will permit the agency to hire an additional 250 staff in critical, core areas and continue to improve our information technology so that we can better oversee today’s markets with the sophisticated tools necessary to safeguard investors,” said White. She said that among the SEC’s priorities for FY 2017 is to “increase examination coverage of investment advisers and other key entities who interact with retail and institutional investors.”
“The need for significant additional resources to permit the agency to increase its examination coverage of registered investment advisers and investment companies cannot be overstated,” said White. She told the subcommittee that the current projection is that the number of investment advisers “will grow to 12,500 investment advisers managing more than $70 trillion in assets by FY 2017.”
In addition, said White, SEC examination staff faces challenges posed by the increased use of new and complex products by investment advisers and broker-dealers, as well as “the growth of complex ‘families’ of financial services companies with integrated operations that include both broker-dealer and investment adviser affiliates.”
White told the subcommittee, “Under the FY 2017 request, a top priority will be to hire 127 additional examiners, primarily to conduct additional examinations of investment advisers,” and that improved oversight and examination functions related to broker-dealers is also a high priority.
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