WASHINGTON– Republicans seem to be trying to starve the U.S. Securities and Exchange Commission (SEC) of the resources it needs to police the sale of investment products, Rep. Gary Peters said today at the fiduciary standard hearing.
"Consumers are not being served if they're not receiving access to investment quality advice," Peters, D-Mich., said at an invest products sales oversight hearing organized by the House Financial Services Committee's capital markets subcommittee. "Whatever regulator will regulate investment advisors in future, it's important they be given resources needed, but Republicans seem unwilling to do this."
Other Democrats at the hearing expressed similar views.
"The SEC needs funds to carry out Its new powers," said Rep. Jim Himes, D-Conn. "Government watchdogs of Wall Street have long been outnumbered."
Rep. Stephen Lynch, D-Mass., defended SEC efforts to move quickly to craft a rule applying the same fiduciary standard that now applies to investment advisors to broker-dealers and their representatives.
"It is important that we foster environment in which clients can growth their investments wisely," Lynch said. "We must ensure that regulators have resources to keep investors well informed and their money safe."
