House holding oversight hearing on Finra today

Financial Services subcommittee will explore self-regulator's agenda, structure and in-house operational review

Sep 7, 2017 @ 2:09 pm

By Mark Schoeff Jr.

Editor's note: This story was updated after the conclusion of the hearing.

Lawmakers will scrutinize Finra's agenda, structure and its recent self-examination initiative in a House hearing this afternoon.

Finra CEO Robert W. Cook was scheduled to appear as the sole witness at 2 p.m. before the House Financial Services Subcommittee on Capital Markets, Securities and Investment. It will be the first time in two years that the panel has taken a look at the Financial Industry Regulatory Authority Inc., the broker-dealer self-regulator.

"Since the committee last held a general oversight hearing on Finra in 2015, Finra has appointed Mr. Robert Cook as the president and CEO, and there have been a number of significant changes that have taken place," Rep. Bill Huizenga, R-Mich. and subcommittee chairman, will say, according to his prepared remarks.

The subcommittee also will explore "the role that self-regulation plays in the U.S. capital markets and Finra's relationship with and oversight by the [Securities and Exchange Commission]," according to a hearing memo circulated to lawmakers.

InvestmentNews tackled many of the same topics in an in-depth story on Finra published earlier this week.

Lawmakers will focus especially on Finra 360, the regulator's self-examination that Mr. Cook launched earlier this year. It's part of an ongoing listening tour that has been the centerpiece of his tenure, which began in August 2016.

Although Capitol Hill doesn't set Finra's budget, and Finra reports to the SEC rather than directly to Congress, lawmakers can still weigh in on its operations.

"When most people think about Congress, they think about legislation, but oversight is critically important," said David Tittsworth, counsel at Ropes & Gray. "It's good to see that they're having some sort of hearing. One could argue that inviting some other witnesses [in addition to Mr. Cook] could give a more fulsome picture of what's going on."

He is hopeful about Finra 360.

"It looks like a good-faith effort by Robert Cook," Mr. Tittsworth said. "My understanding is that it's a work in progress. I'm taking a wait-and-see attitude."

0
Comments

What do you think?

View comments

Most watched

INTV

Schwab's Jeff Kleintop: Prep for volatility given China trade uncertainties

China could be considered a developed market in five to seven years , according to Jeff Kleintop, chief global investment strategist, Charles Schwab.

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

Latest news & opinion

Funding for Reg BI, other SEC advice reform efforts denied in Waters amendment

House likely to approve measure that effectively kills rule package, but it faces uphill battle in Senate

Wall Street lashes out at Sanders' plan to pay off student debt with a securities trading tax

Financial pros argue that a transaction levy will hurt mom-and-pop investors along with investment houses.

GPB paid B-Ds and reps steep commissions to sell troubled private placements

GPB paid commissions of 9.3%, or $167 million altogether, on the firm's private placements.

Give us a break, active managers say

Seven portfolio managers share their outlooks for the rest of the year, generally agreeing that it's been hard for active managers to stand out.

GPB Capital reports decline in value of two biggest funds

One has dropped by 25.4% and the other by 39%, according to the company.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print