Chairman of the House Financial Services Committee Jeb Hensarling and chairman of its capital markets subcommittee Scott Garrett said in a letter to SEC chair Mary Jo White that “for these advisers, the SEC examination process has proven to be burdensome, costly, inefficient and inflexible,” according to Reuters.
“Subjecting this set of advisers to the examination process does not appreciably further the goals of investor protection or financial stability,” said Hensarling and Garrett.
They also questioned whether private equity fund, which were not regulated prior to the passage of the Dodd-Frank Wall Street reform law in 2010, posed any systemic risk to the markets, said the report. Hensarling and Garrett opined that the SEC should better focus on investment advisers that seek commitments from less sophisticated investors.
The representatives have asked White to respond to the questions they raised about the examination procedures.
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