Investment News: RIAs should be forced to hire outside examiners: Gallagher

Mark Schoeff of InvestmentNews reports that SEC official wants registered investment advisers to be forced to hire third-party contractors to conduct examinations, increasing the oversight of advisers.

Excerpt: Securities and Exchange Commission member Daniel Gallagher wants registered investment advisers to be forced to hire third-party contractors to conduct examinations.

In remarks at the Financial Industry Regulatory Authority Inc.’s annual conference in Washington, Mr. Gallagher recommended that the SEC write a regulation that would require advisers to hire an examiner to review their operations.

The rule would be similar to one the agency adopted in 2009 that forces advisers who maintain custody of client assets to bring in an auditor to verify that the funds are safe.

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