The Financial Planning Coalition issued the following statement regarding the letter from House Financial Services Committee Chairman Jeb Hensarling (R-TX)and Rep. Scott Garrett (R-NJ), chairman of the committee’s capital markets subcommittee, to Securities and Exchange Commission (SEC) Chair Mary Jo White regarding the costs of proposed user fees to increase investment advisor oversight:
“While we are pleased that Chairmen Hensarling and Garrett recognize there is a problem resulting from the lack of investment advisor examinations, we strongly disagree that merely asking the SEC to reallocate its stretched and inadequate resources or outsourcing examinations to third parties is the solution. Chairmen Hensarling and Garrett’s recent letter opposing user fees ignores a well-documented Boston Consulting Group economic analysis that shows that user fees are the most cost-effective solution to increasing examinations. Current legislation authorizing the SEC to assess user fees is supported by the very industry it would affect, has no impact on the American taxpayer and is scalable to address any small business concerns.
“In Washington there is a tendency to make complex what should be simple. The simplest and most cost-effective solution that will in fact protect investors is to enable the SEC – the expert agency on advisor regulations – to increase examinations with very strong support of advisors and at no cost to taxpayers. We will continue to work to encourage the 114th Congress to embrace the user fee solution.”