The FinServ Capital Markets Subcommittee held an SEC-oversight hearing today at which Chairman Schapiro outlined the agency’s near-term priorities, emphasizing the need for more funding. Republican members expressed greater interest in the agency’s plans to implement the JOBS Act, also demanding that the SEC improve the quality of its cost-benefit analyses. The two parties were able to reach across the aisle on MMFs, expressing strong opposition to a floating NAV requirement, although Ms. Schapiro pushed back on grounds that something needs to be done with MMFs due to their systemic risk potential. She gave more ground on a pending rule regulating municipal advisers, indicating that an array of unintended third parties will not be covered in the final rule. FinServ Chairman Bachus (R-AL), however, was willing to lighten the SEC’s supervisory load by, along with Rep. McCarthy (D-NY), introducing legislation to create an SRO for retail investment advisers. This report analyzes today’s hearing.
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