Financial firms would face regulatory scrutiny under new legislation unveiled on Wednesday.
The plan, introduced by the HOUSE financial services Committee, will shift the scrutiny of the federal Government to groups that are supported by the financial industry. Regulatory organization called, the possibility of FINANCIAL INDUSTRY REGULATORY AUTHORITY, or FINRA, will examine the more than 14,000 investment advisors, which manages money for retail and institutional investors.
Lawmakers said that the legislation would close the gap rules are great. The Securities and Exchange Commission, the federal Police Agency of regulation of financial markets, has oversight of investment advisers patchwork. Only 8 percent of the investment adviser has been examined by the SEC last year, lawmakers said.