Under the recent federal budget proposal by the President, the SEC’s funding would increase an extra $256 million allowing the SEC to hire hundreds of additional examiners to increase investment advisor oversight.
Under the proposal, the SEC’s budget would rise to $1.67 billion, from $1.42 billion. The SEC wants to use part of the money to “beef up” advisor exams.
In the SEC’s budget request document, it said that it examined only about 8% of 11,000 registered advisors in fiscal year 2012 and that 40% of advisors have never been examined. The SEC said that it wants to increase its examination rate to 45% to 55% annually, about the same rate of coverage of about 4,600 broker-dealers each year by the FINRA.
Overall, the $1.67 billion appropriation would allow the SEC to hire 676 additional staff members, 325 of whom would be examiners.
Jason Doss is the owner of The Doss Firm, LLC, an Atlanta-based law firm devoted to representing consumers across the country in a variety of areas including investment disputes and consumer class action litigation. Mr. Doss earned his J.D. from Florida State University in 2002 and his B.A. from the University of Florida in 1997.