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SROIIA’s Rulemaking Procedures
To become the SRO for investment advisers SROIIA is going to need to have in place the procedures to run as a successful SRO. One major area is how SROIIA will go about making rules. After examining APA requirements and how other SROs establish their rules, SROIIA has developed a theoretical process.
When SROIIA makes rules it must make sure to follow the APA requirements and §19 of the Securities Exchange Act. The possible rulemaking process for SROIIA would be …
1. Start off with proposals from:
- Firms,
- Investors,
- Advisers,
- Interested parties,
- Staff initiatives,
- Recommendations from the SEC (or other regulatory bodies),
- Recommendations from SROIIA committees,
- SROIIA Advisory Council, or
- From responses to market developments.
2. SROIIA staff and rulemaking committee reviews the rule
3. Industry/SROIIA experts review the rule
4. Ask for input from general public
5. Submit rule to SROIIA board for discussion of the proposal
- For SROIIA approval and adoption
6. File a copy with the SEC
- Accompanied by concise general statement
7. SEC publishes notice and time for comment
8. Notice given of approval or denial Make sure it has some 19(b)(3)(A) and make sure it is necessary for the protection of investors, the maintenance of fair and orderly markets, or the safeguarding of securities or funds
9. SEC places the rule in the federal register if approved
10. Post the rule on our website, along with any rule changes and rule updates
This is the proposed rulemaking plan for SROIIA. Any recommendations and opinions are always welcomed and can be sent to comments@sroiia-us.org.
... READ MORE- identification of the need for the regulation and the regulatory objective;
- an explanation of why the private market or local authorities cannot adequately
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What You Need to Read, September 30
What you need to know, and what you may have missed, this week:
The Heritage foundation agrees that the current regulation is broken and that we need a new system based on what advisers want.
Advisor One has a new and nuanced look at Senator Shelby’s bill.
SROIIA released a summary of its survey of investment advisors, and the results were striking: 87% agreed they would want a new SRO instead of
... READ MOREFinancial Regulatory Responsibility Act of 2011
Last week, a bill was proposed by Sen. Richard Shelby, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, that would require all financial regulators, like the SEC, FINRA, and an IA-SRO, to conduct an economic analysis on any of its proposed rules.
The analysis, at a minimum, must include:
Plan B for Investment Advisers
For those of you who watched the hearing on Tuesday or have read articles discussing it, you know that SRO regulation is a growing elephant in the room and it’s time to start paying attention to it. That being said, you should not give up on hopes that the SEC remains as the regulator, but it would be prudent to begin to think about Plan B.
As organizations serving as the voice of the
... READ MOREBachus is certainly wrong here...and we all know it. The US Chamber of Commerce made a clear statement recently, regarding the state of affairs at FINRA...they are Unregulated, with unlimited funding resources and not subject to the oversight of Congress. The SEC, which is severely underfunded these days, is not able to perform its oversight of the SRO, just as it probably can't perform it over the growing population of Investment Advisers. The CoC further suggested that drastic changes be ma...
READ MOREIt's going to be fun to see how this started to where it ends up. I'm looking forward to it....
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