The National Association of Personal Financial Advisors has sounded the alarm against House Financial Services Chairman Spencer Bachus' bill calling for a self-regulatory organization to oversee advisors.

Warning that the bill would hurt small-business owners "who provide sound financial planning to consumers and who put their clients' interests first, " NAPFA officials said in a May 31 statement that the "seemingly innocently named" Investment Adviser Act of 2012 (HR 4624) would strip advisor examination and oversight from the Securities and Exchange Commission, the independent government agency that has overseen registered fiduciary advisors for more than seven decades.

Bachus, who will hold a hearing on Wednesday, proposes that SEC oversight of advisors be replaced with a nongovernment organization, the Financial Industry Regulatory Authority.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.