SEC Investor Advocate Calls for Full SEC Funding… and User Fees

InvestmentNews reported that SEC Investor Advocate, Rick Fleming called on lawmakers to increase the SEC’s funding so that it can hire additional examiners for investment advisers.  Mr. Fleming would like to see the SEC examine advisers every three years.

But Mr. Fleming isn’t happy with just giving the SEC its full budget.  The former Kansas securities regulator also wants to see legislation that would authorize the SEC to charge user fees to advisers for exams.  He said that user fees “would provide a consistent, scalable source of revenue to protect investors with an adequate level of investment adviser examinations.”

Fleming pointed to the fact that the SEC Investor Advisory Committee and “investment-adviser interest groups” back the user-fee legislation.  This shows the danger of advisers blindly supporting user-fee legislation.  If the SEC receives its full requested budget and can examine advisers every three years, why should advisers need to pay for their examinations?

Comments are closed.