Amendment would give Finra expanded oversight over brokers' RIAs

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Amendment would give Finra expanded oversight over brokers' RIAs

By Sara Hansard

October 29, 2009 4:58 pm ET

The Financial Industry Regulatory Authority Inc. could be given the power to oversee any adviser associated with a registered broker-dealer, which includes dually registered members under an amendment to the Investor Protection Act.

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The amendment, sponsored by House Financial Services Committee ranking member Spencer Bachus, R-Ala., was added to the bill as the committee marked it up late Wednesday.

The amendment would authorize the Securities and Exchange Commission to give Finra the power to oversee the advisory activities of brokerage firms that Finra regulates. Currently, broker-owned registered investment advisory businesses having assets of $25 million or more are overseen by the SEC.

The committee is scheduled to vote on the Investor Protection Act Nov. 4. It is likely to approve the bill.