Ted Knutson of Financial Advisor reports that the SEC is not providing investors with “sufficient protection” against dishonest advisors because of budget shortfalls.
Excerpt: The Securities and Exchange Commission is not providing investors with “sufficient protection” against dishonest advisors because of budget shortfalls, SEC Chairman Mary Jo White told Congress today.
Noting that the SEC only has 19 examiners per trillion dollars in investment advisor assets under management, White appealed for money to hire 250 advisor examiners. The examiners are needed for better oversight of advisors, whom she said consumers are increasingly relying upon to deal with securities markets and retirement planning.
Last year, less than 9 percent of RIAs were examined; 40 percent of advisors have never been examined, according to the SEC.