It didn't take long for the lobbying to reignite on a bill that would establish one or more self-regulatory organizations for investment advisers after Rep. Spencer Bachus, R-Ala., prevailed in his primary on Tuesday. An interest group was soon paying respects.
Mr. Bachus, the chair of the House Financial Services Committee,
walloped state Sen. Scott Beason, 58.6% to 27% in what observers had called the fight of Mr. Bachus' political life since coming to Congress two decades ago. He now stands out as someone who has overcome fierce anti-incumbent sentiment in a year when voters are rejecting Washington.
Now it's back to business for Mr. Bachus. One of the items on his agenda is the adviser SRO legislation, which he offered in draft form in September. Lobbyists are expecting a revised draft to emerge any time.
The Financial Services Institute planted its flag again on the issue with an effusive statement about Mr. Bachus' political survival on Wednesday morning.
“Those in the financial services industry and the hard-working clients they serve should all be grateful that Chairman Bachus will be headed back to Congress once again,” FSI President and chief executive Dale Brown said in a statement. “His constituents clearly understand what we do – that Chairman Bachus is a dedicated, thoughtful public servant. We are proud to have supported Chairman Bachus, both legislatively and politically. Specifically, we will do everything possible to mobilize our members in support of the chairman's work to create a self-regulatory organization (SRO) for retail investment advisers. This will provide meaningful protection for American investors – something that is long overdue.”
But Mr. Bachus still faces high political hurdles. For one thing, he's under investigation by the House ethics office for alleged insider trading. That case could get referred to the House Ethics Committee.
Secondly, Mr. Bachus has already said that he will not seek the financial committee chairmanship in 2013. He faces term limits imposed by the House GOP caucus. That means that he is fighting lame-duck status.
The SRO bill, however, could become one of the last signature issues he shepherds as head of the powerful committee.
